There’s a shift happening across Melbourne. Homeowners who’ve relied on gas for heating, hot water, and cooking for decades are pulling the plug, and switching to efficient electric alternatives.
It’s not a fringe movement. It’s economics.
An average Victorian household can save roughly $1,200 per year on energy bills by swapping gas appliances for electric ones, according to analysis by the Institute for Energy Economics and Financial Analysis (IEEFA).
When you factor in government rebates through the Solar Homes Program and the Victorian Energy Upgrades (VEU) scheme, the upfront cost of switching drops significantly, and in many cases, the payback period is under three years.
This guide covers everything Melbourne homeowners need to know about home electrification: what it means, what to replace first, what it costs, what rebates are available, and how to make the transition without disrupting your household.
Zap Tech Energy is a CEC-accredited, SolarQuotes Gold Rated installer based in Epping. We help homeowners across Greater Melbourne — from Geelong to the Mornington Peninsula — plan and execute full home electrification projects. If you’d like expert guidance tailored to your home, call us on 03 9404 0484 or enquire online.
What Is Home Electrification?
Home electrification — also called “going all-electric” or “getting off gas” — means replacing gas-powered appliances in your home with efficient electric alternatives.
For most Melbourne homes, this involves replacing some or all of the following:
- Gas hot water system → heat pump hot water system or electric hot water system
- Gas cooktop → electric induction cooktop
- Gas ducted heating → reverse-cycle air conditioning (split system or ducted)
- Gas space heater → reverse-cycle split system
The goal is to eliminate your gas connection entirely, which means no more gas supply charges (typically $300–$400 per year just to stay connected) and no more exposure to rising gas prices.
When paired with rooftop solar and a battery, a fully electrified home can generate and store most of its own energy — dramatically reducing electricity bills on top of eliminating gas costs altogether.
Why Are Melbourne Homeowners Going All-Electric?
The Financial Case
Gas isn’t getting cheaper. Victoria’s gas supply situation is tightening, and wholesale gas prices have been volatile. Meanwhile, electricity from solar panels is essentially free once the system is installed.
Here’s the financial picture for a typical Melbourne household making the switch:
- Eliminating gas supply charges: $300–$400 per year saved immediately
- Lower running costs: A heat pump hot water system uses roughly one-third the energy of a gas storage unit, and reverse-cycle air conditioning is three to five times more efficient than gas ducted heating
- Solar synergy: When your home runs entirely on electricity, you can offset the majority of your consumption with rooftop solar — something you can’t do with gas appliances
The IEEFA analysis found that all-electric homes are the lowest-cost option over a 10-year period when compared to maintaining gas connections.
Victoria’s Energy Landscape
The Victorian Government has signalled a clear direction toward electrification. The state’s renewable energy targets, emissions reduction commitments, and the expansion of rebate programs for heat pumps, solar, and batteries all point the same way: electric is the future.
Gas distribution networks face significant challenges as more households disconnect, which will likely mean higher fixed charges for the homes that remain connected. Moving early protects you from being among the last households subsidising an ageing gas network.
For more information on Victoria’s energy transition:
- Sustainability Victoria — practical resources for Victorian homeowners
- Energy Victoria — government energy programs and advice
- Rewiring Australia — national electrification analysis and household calculators
The Environmental Case
Residential gas use is a meaningful source of emissions in Victoria. Replacing gas appliances with efficient electric alternatives — powered by increasingly renewable grid electricity and rooftop solar — is one of the most impactful things an individual household can do to reduce its carbon footprint.
Considering electrifying your home? We can map out a staged plan that fits your budget. Call 03 9404 0484 or enquire online to get started.
What Order Should You Replace Appliances?
You don’t need to electrify everything at once. In fact, the smartest approach for most Melbourne homeowners is to replace appliances as they reach end of life — starting with the ones that deliver the biggest savings.
Here’s the recommended order, from highest impact to lowest:
1. Hot Water (Replace First)
Hot water is typically the single biggest gas expense in a Melbourne home. Replacing a gas storage hot water unit with a heat pump hot water system delivers the largest ongoing savings and qualifies for significant rebates.
Why first? Hot water systems have a defined lifespan (10–15 years). When yours fails, that’s the ideal time to switch — but even if it’s still working, the rebates available right now make early replacement financially attractive.
Rebate: The Solar Homes hot water rebate offers up to $1,000 (or $1,400 for eligible locally manufactured products) towards the cost of a heat pump or electric hot water system. This is on top of STC credits and potential VEU discounts.
2. Heating
Gas ducted heating and gas wall furnaces are the second-largest gas cost for most households. Reverse-cycle air conditioning (heat pump technology) provides both heating and cooling, and it’s three to five times more efficient than gas heating.
A quality split system or ducted reverse-cycle system will heat your home in winter and cool it in summer — two jobs for the price of one appliance.
Rebate: The Victorian Energy Upgrades (VEU) program provides discounts on eligible air conditioning installations through accredited providers.
3. Cooktop
Switching from a gas cooktop to an induction cooktop is usually the simplest swap. Portable induction cooktops start from around $100 if you want to trial the technology before committing to a full installation.
Induction cooking is faster, safer (no open flame), and more energy-efficient than gas. It also improves indoor air quality — gas cooktops produce nitrogen dioxide and other combustion byproducts that you breathe in while cooking.
Cost: A quality induction cooktop plus installation (including a dedicated circuit from your switchboard) typically runs $1,500–$3,000.
4. Solar Panels and Battery
If you haven’t already, adding rooftop solar panels turns your home into a power station. When your home runs entirely on electricity, solar can offset the vast majority of your consumption during daylight hours. Adding a battery extends that to evening and overnight usage.
Rebate: The Solar Victoria rebate offers up to $1,400 towards a solar panel system, plus an optional interest-free loan of up to $1,400.
5. Disconnect the Gas
Once all gas appliances are replaced, you can request a gas disconnection from your distributor. This eliminates the gas supply charge (typically $300–$400 per year) and finalises the transition.
Some disconnection fees may apply depending on your gas distributor, so factor this into your planning.
What Does Home Electrification Cost in Melbourne?
Costs vary depending on the age of your home, the number of appliances being replaced, and whether your switchboard needs upgrading. Here’s a rough guide for a typical Melbourne household:
| Replacement | Typical Cost (Before Rebates) | Key Rebate |
| Heat pump hot water system | $3,000–$5,000 | Up to $1,000–$1,400 (Solar Homes) + STCs + VEU |
| Reverse-cycle split system (per unit) | $1,800–$3,500 | VEU discount available |
| Ducted reverse-cycle system | $8,000–$15,000 | VEU discount available |
| Induction cooktop + installation | $1,500–$3,000 | — |
| Switchboard upgrade | $1,500–$3,000 | — |
| Solar panel system (6.6 kW) | $5,000–$9,000 | Up to $1,400 (Solar Victoria) + STCs |
| Solar battery (10 kWh) | $8,000–$14,000 | Check current availability |
| Gas disconnection | $0–$500 | — |
Total estimate (full electrification): $20,000–$45,000 before rebates, depending on your home’s specific needs.
After rebates and incentives, a typical full electrification for a Melbourne home generally comes in at $15,000–$35,000 — and the ongoing savings of $1,200+ per year mean you’re looking at a payback period of approximately 8–12 years, or faster if electricity prices continue to rise relative to your solar generation.
The key is that you don’t have to do it all at once. Stage the replacements over 2–3 years, prioritising the appliances with the biggest savings and the best rebates.
Do You Need a Switchboard Upgrade?
Probably. If your Melbourne home was built before the 2000s, your switchboard likely wasn’t designed to handle the electrical load of a heat pump hot water system, reverse-cycle air conditioning, an induction cooktop, a solar system, a battery, and an EV charger.
A switchboard upgrade ensures your home’s electrical infrastructure is safe, compliant, and future-proofed. It’s one of Zap Tech Energy’s core services — we hold Electrical Contractor’s Licence REC 34973 and complete switchboard upgrades across Melbourne’s Greater area every week.
Signs you need a switchboard upgrade:
- Your switchboard still has ceramic fuses instead of circuit breakers
- You’re adding solar, a battery, or an EV charger
- You’re experiencing tripped circuits or flickering lights when running multiple appliances
- Your electrician has recommended an upgrade as part of a solar or heat pump installation
Rebates and Incentives for Melbourne Homeowners
Victoria has some of the most generous renewable energy rebates in Australia. Here’s a summary of what’s currently available:
Solar Homes Program (Solar Victoria)
- Solar PV rebate: Up to $1,400 towards a solar panel system
- Hot water rebate: Up to $1,000 (or $1,400 for eligible locally made products) towards a heat pump or electric hot water system
- Interest-free loan: Up to $1,400, repaid over 4 years at approximately $29/month
Eligibility: Owner-occupier, combined household income under $210,000 (dropping to $150,000 from 1 July 2026), property value under $3 million.
For full details, visit solar.vic.gov.au.
Small-scale Technology Certificates (STCs)
STCs are a federal incentive applied at the point of sale. Your installer claims them on your behalf, and the value is deducted from your invoice. For a typical 6.6 kW solar system in Melbourne, STC credits are currently worth approximately $2,500–$3,500 depending on system size and the certificate price (around $38–$40 per STC in 2026).
Victorian Energy Upgrades (VEU) Program
The VEU program provides discounts on energy-efficient products including heat pump hot water systems, air conditioning, and insulation. Discounts are applied through accredited providers and can stack with Solar Homes rebates.
Want to know exactly how much you could save? Call Zap Tech Energy on 03 9404 0484 and we’ll put together a personalised electrification plan for your home — including all applicable rebates.
How Zap Tech Energy Helps Melbourne Homeowners Go All-Electric
Zap Tech Energy is one of the few Melbourne companies that can handle every aspect of home electrification under one roof:
- Solar panels and battery storage — design, supply, and installation
- Heat pump hot water systems — replacing gas or old electric storage units
- Air conditioning — split system installation for heating and cooling
- Switchboard upgrades — ensuring your home can handle the full electrical load
- EV charger installation — home charging for electric vehicles
- Gas to electric cooktop conversions — including dedicated circuit installation
We’re based in Epping, CEC accredited, SolarQuotes Gold Rated, and hold Electrical Contractor’s Licence REC 34973. Our team has over 10 years of experience working across Greater Melbourne — from the northern suburbs to the Mornington Peninsula.
We’ll assess your home, map out a staged plan if needed, handle all rebate paperwork, and complete every installation to CEC and ESV standards.
Get Started: Your Home Electrification Consultation
Whether you’re ready to electrify everything at once or want a staged plan that replaces appliances as they reach end of life, Zap Tech Energy can help.
📞 Call us: 03 9404 0484
Frequently Asked Questions
What is home electrification?
Home electrification means replacing gas-powered appliances — hot water systems, heaters, and cooktops — with efficient electric alternatives. When combined with rooftop solar, a fully electrified home can generate most of its own energy, eliminating gas bills and dramatically reducing electricity costs. It’s also referred to as “going all-electric,” “getting off gas,” or “whole home electrification.”
How much does it cost to electrify a home in Melbourne?
A full home electrification in Melbourne — covering heat pump hot water, reverse-cycle air conditioning, induction cooktop, switchboard upgrade, and solar panels — typically costs between $20,000 and $45,000 before rebates. After applying Solar Victoria rebates, STCs, VEU discounts, and interest-free loans, most Melbourne homeowners pay between $15,000 and $35,000 out of pocket. Staging the work over 2–3 years can make it more manageable.
What should I replace first when going all-electric?
Hot water. It’s typically the single largest gas expense, and the rebates available for heat pump hot water systems are substantial — up to $1,400 from the Solar Homes Program, plus STC credits and VEU discounts. Heating (replacing gas with reverse-cycle air conditioning) is the next highest-impact swap, followed by the cooktop.
Will I save money by going all-electric?
Yes. The IEEFA estimates the average Victorian household saves approximately $1,200 per year by switching from gas to electric appliances. You also eliminate the gas supply charge ($300–$400/year). If you have rooftop solar, your savings increase further because you’re generating your own electricity rather than buying gas that can’t be offset by solar.
Do I need a switchboard upgrade to go all-electric?
In most Melbourne homes built before the 2000s, yes. Adding a heat pump, air conditioning, solar, a battery, and an EV charger increases your home’s electrical load beyond what older switchboards were designed for. A switchboard upgrade ensures safety, compliance, and future-proofing. It typically costs $1,500–$3,000.
What rebates are available for home electrification in Victoria?
Victoria offers several rebates: the Solar Victoria PV rebate (up to $1,400), the Solar Homes hot water rebate (up to $1,000–$1,400), interest-free loans (up to $1,400 over 4 years), federal STC credits ($2,500–$3,500 for a typical 6.6 kW system), and VEU program discounts on heat pumps and air conditioning. Zap Tech Energy handles all rebate paperwork as part of every installation.
Can I electrify my home in stages?
Absolutely, and we recommend it for most households. Start with hot water (biggest savings, best rebates), then tackle heating, then the cooktop, and add solar if you haven’t already. Staging the work over 2–3 years spreads the cost and lets you take advantage of rebates as they’re released. We can map out a staged plan tailored to your home and budget.
Does Zap Tech Energy handle the full electrification process?
Yes. Zap Tech Energy is one of the few Melbourne companies that covers every aspect of home electrification — solar, batteries, heat pump hot water, air conditioning, switchboard upgrades, EV chargers, and gas to electric conversions. We’re based in Epping, CEC accredited, SolarQuotes Gold Rated, and hold Electrical Contractor’s Licence REC 34973. One team, one point of contact, from start to finish.