Thinking about upgrades to your home to lower your energy bills? Learn how you can switch your household from gas to electricity and take advantage of government rebates.
Sustainability
Is solar hot water or a heat pump worth it?
Should I get solar panels for my home?
How to plan for your home to go all-electric
For new builds or renovations, an all-electric approach can help households save on energy bills and create a more comfortable and sustainable home. Here’s a comprehensive guide to going all-electric.
The use of gas appliances rather than electric in newly built houses, apartments and other residential dwellings in Victoria changed on January 1, 2024, when laws came into effect that prohibit new reticulated natural gas connections.
The new rules don’t apply to bottled or reticulated liquified petroleum gas (LPG), acknowledging that gas is still important for some households.
Whether building a new home, renovating an existing one, or upgrading appliances, choosing to go all-electric can bring significant cost savings, especially when combined with a rooftop solar system.
Here's a guide to how much you can save and some key considerations regarding heating and cooling, hot water systems, cooktops, solar panels and batteries, EV charging and more.
In this article
- How much can you save going all-electric?
- What’s the best system for heating and cooling?
- Is solar hot water or a heat pump worth it?
- What’s the advantage with induction cooking?
- Should I get solar panels for my home?
- Is it worth getting a solar battery?
- How much does it cost to charge an EV at home?
- Will smart home technology help save money?
- What rebates and grants are available?
How much can you save going all-electric?
An all-electric new home in Victoria can reduce a household’s annual energy bills by up to $1820 with a solar system installed (or $880 without), according to the state’s Department of Energy, Environment and Climate Action. For existing homes with solar panels, switching from gas to more efficient electric appliances can save around $2000 per annum.
That’s why significant incentives are also in place for homeowners to include a solar system for both new and existing homes, covering solar panels and solar hot water systems (and heat pumps). Interest-free loans for solar batteries are also available.
“Transitioning away from gas to efficient all-electric homes powered by solar is a great way to save money over the long term,” says RACV Head of Electrification Julia Lu.
“Whether you are building a new home, renovating or simply replacing an appliance, RACV is here to help households make the best decision possible to save on energy bills, add to the value of their home and become more comfortable and sustainable.”
More: How to switch your home from gas to electricity
What’s the best system for heating and cooling?
A vital element when planning an all-electric home is your heating and cooling systems, which together account for around 40 per cent of energy use in an average Australian home.
Fans are a low-cost cooling option that always run off electricity. Ceiling fans, which can be used independently, are highly effective when operated in conjunction with an electric split-system or reverse-cycle air conditioner, both when heating and cooling.
Modern air conditioning systems can be highly energy efficient but you need to take into account the climate where you live, the size of your home and your lifestyle. The Federal Government’s ‘Your Home’ website has information on heating and cooling options, while Sustainability Victoria also has a useful heating running costs calculator.
It’s also important to keep your air conditioning system regularly serviced for optimal efficiency.
More: How to choose the best heating and cooling solutions for your home
Is solar hot water or a heat pump worth it?
Water heating is second only to home heating and cooling as the largest component of household energy use, ranging from 15 to 30 per cent according to the federal Department of Climate Change, Energy, the Environment and Water. It’s also the largest source of greenhouse gas emissions (up to 25%) from an average Australian home, so using an environmentally friendly hot water system is recommended.
The best hot water system in terms of affordability and environmental impact is a solar hot water system or a heat pump hot water system. Heat pumps are almost 80 per cent more efficient than a traditional electric hot water system. They also cost less to run in the long term than gas water heaters.
Check the quality and environmental credentials of the heat pump hot water system you choose. It’s also worth determining if the product has been tested to perform in cold climates.
Smart hot water heat pumps are ideal when paired with a solar system. They can use any excess solar energy to heat the water, rather than sending the excess energy back to the grid.
Induction cooktops are more energy efficient than traditional cooking methods.
What’s the advantage with induction cooking?
There are three main types of cooktops available for domestic kitchens: gas, ceramic (electric) or induction.
The safest and most efficient type is an induction cooktop, which uses electricity but heats using a modern technology called electromagnetism. Induction cooktops heat food up to 50 per cent faster than gas or ceramic cooktops while using less energy. Even RACV Club chefs now cook with induction stovetops, thanks to their practicality.
For an all-electric home, make your oven, barbeque and other cooking appliances electric, too. Air fryers are a great electric-powered kitchen appliance that provide an easier, healthier alternative to deep frying – and there are plenty of delicious recipes available.
More: Guide to gas vs electric (ceramic) vs induction cooktops
Should I get solar panels for my home?
Rooftop solar panels can generate electricity to power your all-electric home, helping you cut down your energy bills. Australia has the highest proportion of residential rooftop solar energy in the world, with more than four million rooftop solar systems and counting. Make sure to use a good solar provider for the best results.
Any excess solar power produced by your solar panels can be stored in a solar battery for later use or used to heat your hot water if you go all-electric. If you make more solar energy than your household can consume, you can sell the energy back to the electricity grid for other homes and businesses to use.
That said, feed-in tariffs have reduced dramatically in recent years, so it’s recommended you size your solar system according to your household requirements, using as much of what you generate as possible. A solar backstop mechanism also prevents people from pushing too much solar back into the grid.
More: Guide to solar panels for your home
Is it worth getting a solar battery?
A solar battery system for your home can store excess solar energy produced by your solar panels to use at night or during peak energy demand. They can also provide blackout protection.
More than 250,000 solar batteries have been installed across Australia. According to the Clean Energy Council, homeowners can save up to $1500 a year using an orchestrated battery. This type of battery can trade energy with the grid at optimal times to maximise savings for the homeowner and benefit the broader energy network. The council says a regular non-orchestrated battery, which simply discharges the stored energy back into the home when needed, can still realise annual bill savings of $900-$1000.
The Victorian government is currently providing an interest-free loan of up to $8800 for eligible households, assisting with the installation of a solar battery system. This is designed to reduce the upfront cost and is repaid monthly over a four-year period.
A dedicated home EV charger is convenient and cost-effective, especially when combined with rooftop solar panels and a solar battery. Image: Garth Oriander
How much does it cost to charge an EV at home?
Installing an electric vehicle charger in your garage, carport or driveway is a cost-effective and convenient way to charge your EV as part of an all-electric home. A dedicated home EV charger should handle most vehicles’ average daily use in an hour or so, and a full recharge overnight, making them extremely effective – especially when used in conjunction with a rooftop solar and solar battery system.
Home EV charging costs vary depending on what vehicle you have, how far you drive each day, how much you pay for electricity and when you charge. To get an estimate of how much you could save, try the Federal Government’s Green Vehicle Guide Home Charging Calculator.
For example, a Kia EV5 with an 88.1kWh long-range battery can be fully recharged overnight on an off-peak rate (15c/kWh) using a 7kW home charger for about $13. This will enable a driving range of up to 555km, according to Kia. It will cost more using peak rates or could cost only a small amount if drawing from a solar battery storage system.
In future, with the enablement of bidirectional charging, you may even be able to use your EV as a ‘battery on wheels’ and power your home from the energy stored in the car’s battery.
More: Guide to installing an electric car home charger
Will smart home technology help save money?
Smart energy management tools allow you to monitor your real-time energy consumption and identify opportunities for further efficiency improvements. For example, a smart energy meter records electricity usage every 30 minutes so you can see your usage patterns and percentages. You can even set up your system to warn you of excessive energy consumption.
Other smart home devices include thermostats that can maximise air conditioner energy savings, window blinds that automatically close when your windows start heating up, and plugs that cut power when an appliance isn’t in use. These plugs are particularly useful considering standby power (also known as vampire power) could be adding more than $100 a year to your energy bills.
In addition, it’s important to consider your home’s switchboard, which is a critical part of an electric home. It needs to have enough space for your existing circuits and appliances, with extra room for those you plan to add in future. Depending on the age of your switchboard, an upgrade may be required to accommodate new technology safely. A qualified and licensed electrician can advise on what your home needs.
What rebates and grants are available?
Energy efficient electric alternatives in the home often attract government rebates and other financial incentives. For example, green loans are sometimes available for purchasing solar panels, solar batteries, EV home chargers, and energy efficient appliances like heat pump hot water systems.
There are also rebates for solar products like solar panels, solar batteries, and solar hot water systems or heat pump hot water systems.
In Victoria, you can check your eligibility for the available rebates on the state government’s Service Victoria website. The Victorian Energy Upgrades program also offers discounts for energy efficient electric clothes dryers, fridges and freezers, air conditioners and other appliances for eligible Victorian households.
It’s important to note that when considering new appliances or upgrades, a licensed electrician needs to be engaged along with a licensed plumber if you are removing an old gas unit or installing an air conditioner. Additional qualifications and registrations may also be needed to connect solar systems or solar batteries or to claim the full suite of government incentives, so choose your trade carefully.
