Solar rebates and electric stoves: what Victoria’s gas phase-out means for you

The story

The Victorian government introduced the 2024 Gas Substitution Roadmap Update on Friday to bring gas consumption down by almost 70 per cent by 2045. The plan would deliver savings of hundreds of dollars for households switching from gas to electric alternatives, or up to $2000 a year when paired with rooftop solar.

The roadmap aims to give homeowners clear steps on how to electrify their homes, create better energy efficiency standards for rentals and support business in the transition.

The Allan government’s favoured option also includes a requirement that existing household gas appliances – excluding gas cooktops – to 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.

Who is pushing back?

Honi Walker, the Chief Exec at the South East Melbourne Manufacturers Alliance pointed to the pressures on the manufacturing sector, highlighting that 111 manufacturers went insolvent during the year to June 2024, with more than 6000 employees made redundant.

Environment Victoria’s Jonathan La Nauze, however, said that electrification is critical to keeping costs down in the manufacturing sector.

“If we do not start electrifying the household sector and thereby take pressure off Victoria’s limited gas supplies, manufacturers will actually be significantly worse off,” he told the Eastern Melburnian. He pointed out that Victorian industry has benefited from cheap gas from the Bass Strait for the last 50 years, but that resource is approaching exhaustion, and the alternatives are vastly more expensive.

La Nauze said staying with the status quo of the state’s gas usage was no longer viable. “There is no option of doing nothing,” he said.

The facts

Compared to 2021–22, Victorian residential customers are paying about $500 more, or 34 per cent more, for their gas due to the rapidly dwindling supply.

The state's gas sector contributes about 17 per cent of Victoria’s greenhouse gas emissions.

Without cutting gas, Victoria will not meet its emissions reduction targets of 75 to 80 per cent by 2035 and net zero by 2045.

The emission reduction targets were introduced to help in the global effort to reduce major environmental, health and economic risks from the effects of climate change and protect Australia from the worst climate impacts.

Consultation is now open on the proposed changes until February 28, with regulations scheduled to be enforced in 2026.