The Victorian Government has just announced that all incentives for residential gas will be phased out during 2023. The decision came as the state government plans to reduce carbon emissions by 2030 and drive down the cost of living.

Energy Minister Lily D'Ambrosio stated that the state government's first "gas substitution road map", which removes the requirement for all new builds to be connected to the gas network. Gas prices have been steadily climbing for the past ten years. With the world moving towards renewable energy, this will only continue, and it was "time to put gas on the back-burner".

As new homes are being built in the state, more and more of them will be 'all electric' homes. This isn't to say that people can't 'opt-in' for gas if they choose to, but the costs will be much higher than before. The Australian uptake of solar and battery storage is one of the highest in the world. Ensuring most new houses are fully electric is a good start to help reduce our carbon footprint. 

So what does this mean for you? 

If you are looking at building a new home or are in the building industry, then unless you are willing to pay a premium, the house will be all-electric. In the past, natural gas was seen as a cleaner and cheaper alternative to run your home. But thanks to the world's shift to renewable energy and other geopolitical factors, gas is now more expensive than ever. 
We have discussed on this blog before how switching from natural gas to electricity can reduce your carbon footprint, and you can read about that here. But how can you or your customers capitalise on these new laws? To examine the impact, we first have to consider where in the house gas would have been utilised. 

Firstly, the kitchen stove was one of the most popular reasons people chose gas over electricity, as it was seen as more efficient. However, this has well and truly changed, with modern induction cooktops being way more efficient than gas and having added safety benefits. 

The second and by far the more important factor is water heating. Heating and cooling can account for 20-50% of total household running costs, and water heating is a significant component of this cost. The good news is that thanks to new generation electric water heaters, you can reduce not only your carbon footprint but your overall running costs compared to gas!

The Elwa Hotrun X series of electric instantaneous hot water heaters are the perfect choice for any owner or builder looking to save money and help the environment. The Hotrun X model water heater is so highly energy efficient that it can save up to 90% of energy compared to gas and older tank water heaters. This saving is great for the end user's hip pocket and reduces their carbon footprint as well.

Another part of the Victorian State Government's plans is to offer new incentives for residents to move away from gas as part of the Energy Upgrades program. One primary reason for the state government's decision is that Victorians use more gas in their homes and businesses than people in any other state or territory. The fossil fuels from this contribute around 17% of the state's greenhouse emissions. 

The minister stated, "At a time when Victorians are paying twice as much for gas as we did last year and the world is feeling the impacts of climate change, we need to stop a single new gas connection being made and support Victorian homes and businesses to move to an all-electric, post-gas energy system rapidly,"

So the long and the short of it is simple, the future will be renewable and all-electric homes, and almost all countries will follow suit. So if you're a builder, the time is now to switch from offering gas and instead guide your customers to embrace fully electric homes. But it doesn't have to stop at just hot water heating. Here at Elwa, we offer an extensive range of high-
efficiency and long-life LED lighting for homes, commercial buildings and warehouses to suit all budgets. Our vast range of new-generation boutique LED will make your new builds shine brighter than the competition and save you and your client money.

Victorian households can now claim a $250 bonus for comparing their current energy deal with other electricity providers through a state government website launched in recent weeks.

Talk to our highly trained sales team today about your lighting and hot water requirements, and we will guide you on taking advantage of all your state’s schemes and rebates. 

For any questions or enquiries, please visit our contact page or click here for more information on our Hot Water Heaters and LED Lighting range.

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