$3 a day down to 19 cents: How locals are saving money by moving away from gas

In his budget speech last week, Treasurer Jim Chalmers said the 25/26 federal budget included $1.8 billion in energy bill relief, meaning bills would be cut by another $150 this year.

In order to meet Australia’s legislated 43 percent emissions reduction target on 2005 levels by 2030, the Labor government has a goal of achieving 82 percent renewables in the grid.

To reach this target, there are multiple incentives and subsidies on offer to Australians open to the idea of embracing renewable energy.

Albanese to make election pledge that will make buying home batteries easier

In late March, the Sydney Morning Herald reported Labor sources and a government minister had confirmed Labor’s plans to cut the cost of household batteries and make home battery usage more affordable during peak electricity usage times.

This is not a new idea. The government has flirted with a household battery scheme since last year. In October, the ABC reported the Albanese government was considering a plan that would remove up-front costs for homes looking to install heat pumps and batteries. 

In Western Australia, the state Labor government has already unveiled plans to offer rebates of up to $5,000 per house and a no-interest loan program for those looking to install home batteries. WA Premier Roger Cook said he expected households to save “up to $1,500 year after year.”

What is the plan to transition away from gas in Victoria?

The Victorian government introduced the 2024 Gas Substitution Roadmap Update last December to bring gas consumption down by almost 70 percent by 2045.

The plan would deliver savings of hundreds of dollars for households switching from gas to electric alternatives, or up to $2,000 a year when paired with rooftop solar.

The Victorian Labor government’s favoured option also includes a requirement that existing household gas appliances – excluding gas cooktops – be switched to electric alternatives once they reach the end of their lives. It also includes a $1000 rebate for heat pump hot water systems and a rebate of up to $1400 for a solar system on your home

How can people transition their home to full electric?

One of many growing operations helping home owners transition away from gas in Melbourne’s eastern suburbs is Goodbye Gas, which has electrified close to 300 homes in the past two years.

Founded by electrician Ben Russell in 2022, the company acts as an end-to-end service which consolidates all the parts of electrification, including supplying quality appliances, co-ordinating tradespeople and organising all relevant government rebates. 

Head of operations Marcella Palma said the process of moving to an all-electric home with a solar battery could save Victorian homeowners about $2000 a year.

“The government is playing a huge part in making electrification more affordable for Australians,” she told the Eastern Melburnian.

“They have programs like the Victorian Energy Upgrades, Small-scale Technology Certificates and Solar Victoria's rebate program making the upfront cost of electrification more affordable.

“Goodbye Gas has been able to work with the Energy Minister’s office about the future of electrification and how we can make it more affordable.”

How much can a single home save on energy costs by removing gas appliances?

In 2014, Donvale resident Bruce Leister noticed his energy bill was almost $1,000 a year and decided to install solar panels on his home.

After seeing his energy costs cut in half, he then started thinking about getting a solar battery installed and started the process in 2023.

Again experiencing a significant price drop, he then considered transitioning to an all-electric home last November.

“The big stumbling block is how do I project manage the whole thing,” Bruce told the Eastern Melburnian.

Bruce’s energy supplier, Momentum Energy, partnered with Goodbye Gas to manage the transition.

“I got rid of gas ducted heating and just went with reverse cycle units and I got the induction cooktop and I got the electric heat pump for the hot water,” Bruce said.

“The heat pump is brilliant. I just heat up the water during the day when the solar panels are operating and I pay nothing for the electricity.”

Bruce said he thought even if he had to pay more to run electric devices, it was more financially viable to remove the gas appliances, especially as gas prices are set to rise.

“I paid $400 for electricity last year, I paid $2,000 for my gas,” he said.

“The last gas bill was costing me $3 a day.

“I’ve used an extra kilowatt-hour a day extra than what I used last year and so, that equates to about 19 cents. So $3 has dropped down to 19 cents.”

How much does it cost?

While the government continues to push out ways to batteries cheaper, Palma said the average cost of transitioning to an all-electric household was about $8,000 after rebates.

What have the responses been so far on the energy bill relief announcements?

ACT Independent senator David Pocock has commissioned the Parliamentary Budget Office to calculate the cost of providing households with subsidies and incentives to encourage the take-up of energy efficiency measures. He said last week the government should instead be focusing on electrification.

“Entire suburbs across this country should be fully electrified, getting them off gas,” he said.

“They’d be saving thousands of dollars every single year, not this 150 bucks.”

Clean Energy Council chief executive officer Kane Thornton said while the government’s short-term relief was welcome assistance, a national home battery rebate program of up to $6500 per household was still needed to help overcome the upfront costs of a home battery.

“Four million Australians have rooftop solar, but only around 180,000 are doubling their savings with access to a home battery,” he said.

“That means that 95.5 percent of solar households, already saving $1500 on average on their power bills thanks to their panels, could be saving even more through home energy storage.

“Australia’s energy prices are still being driven by unreliable coal plants with unscheduled disruptions, coupled with high gas peaking prices.”

Image Credit: Marnie Hawson