For many Australian households, 2026 presents a compelling opportunity to electrify their homes and disconnect from the gas network, driven by rising gas costs, attractive rebates, and a clearer pathway to lower energy bills and reduced emissions. Making the switch involves replacing gas appliances with efficient electric alternatives like heat pump hot water systems, reverse cycle air conditioners, and induction cooktops, often supported by rooftop solar PV. Crucially, the cost of fully abolishing your gas connection is set to drop significantly from 1 July 2026 to approximately $250-$260, making the final step more accessible than ever.
Why Electrify Your Home in 2026?
Electrification offers multiple advantages:
- Lower Running Costs: Highly efficient electric appliances, especially when paired with rooftop solar, significantly reduce ongoing energy expenses compared to gas. For instance, heat pump hot water systems can use up to 70% less energy than traditional gas systems.
- Reduced Emissions: As Australia’s electricity grid integrates more renewable energy, switching from fossil fuel gas to electricity directly lowers your household’s carbon footprint.
- Improved Indoor Air Quality: Removing gas combustion from your home eliminates indoor air pollutants associated with gas cooking and heating.
- Future-Proofing: With state governments, notably Victoria, actively phasing out gas connections in new builds and encouraging electrification, transitioning now aligns your home with future energy policy and technology trends.
Key Appliances for Electrification
Transitioning from gas primarily involves replacing your hot water system, heating, and cooking appliances. Here’s what to consider in 2026:
Hot Water: Heat Pump Hot Water Systems
Heat pump hot water systems (HPWH) are highly efficient, drawing heat from the ambient air to warm water, much like a reverse-cycle air conditioner. They are typically 3-4 times more efficient than conventional electric resistance heaters.
“A heat pump hot water system costs $4,527 nationally on average in April 2026, once federal STCs and installation are included.”
Expect unit costs between $2,500 and $5,000, with installed costs before rebates ranging from $3,200 to $4,800. After federal Small-scale Technology Certificates (STCs) and state rebates, your out-of-pocket expense could fall to $1,500 to $2,500. Popular models include the Rheem 270L Heat Pump and Sanden Eco Plus. Running costs are remarkably low, often between $150 and $300 per year, a third of what an old electric storage tank might consume.
For a deeper dive, read our guide: Are Heat Pump Hot Water Systems Worth It in Australia 2026? A Guide to Costs, Savings & State Rebates.
Heating & Cooling: Reverse Cycle Air Conditioners
Reverse cycle air conditioners offer efficient heating and cooling from a single unit, making them a superior alternative to gas heaters. They operate by moving heat, rather than generating it, leading to significant energy savings.
- Split Systems: Ideal for single rooms or open-plan areas. Unit costs range from $600 to $2,600+, with installation typically adding $1,400-$3,000 for a simple unit.
- Ducted Systems: Provide whole-home climate control. These are more expensive, with installed costs typically between $8,000 and $15,000.
Look for models with high Energy Star Ratings and Seasonal Performance Factor (HSPF for heating, TCSPF for cooling). Brands like Mitsubishi Heavy Industries (Avanti series), Daikin, and Panasonic are well-regarded for efficiency.
Consider how to maximise your savings by avoiding peak demand charges: How to Avoid Peak Demand Charges and Slash Your Time-of-Use Electricity Bills in Australia in 2026.
Cooking: Induction Cooktops
Induction cooktops offer precise temperature control, faster heating, and improved safety compared to gas. They heat cookware directly using electromagnetic fields, making them highly energy-efficient.
Prices for induction cooktops vary significantly by size, features, and brand:
| Brand/Model Example | Price Range (AUD) | Key Features |
|---|---|---|
| Electrolux 60cm | $799 | Basic 4-zone, good entry-level |
| Westinghouse 60cm | $1,299 | 4-zone, safety features |
| Bosch Series 6 | $2,053 - $2,749 | Flex induction zones, precise control |
| NEFF 60cm N 90 Flex | $3,099 - $3,399 | Flex Design, smart integration |
| AEG 80cm SaphirMatt | $3,999 | Scratch-resistant glass, 5-zone |
| Miele Four Zone | $4,049 - $4,499 | Hob2Hood, heat memory, smart integration |
| Fisher & Paykel 92cm Series 11 | $9,999 | Large scale cooking, premium design |
Powering it All: Solar PV & Batteries
To maximise the benefits of electrification, integrating rooftop solar PV is crucial. A typical 6.6kW solar system costs between $5,000 and $6,000 in most states after federal STC rebates in 2026. Larger 10kW systems are around $8,000-$10,500.
Adding a home battery allows you to store excess solar generation for use during peak evening hours or grid outages. The Federal Cheaper Home Batteries Program, launched on 1 July 2025, offers significant upfront discounts, though values will see tiered reductions from 1 May 2026. For a 10 kWh battery, this could mean $3,300-$3,400 in upfront savings before the May 2026 changes.
For more on battery rebates: Australian Home Battery Rebates Before May 1st 2026: Your State-by-State Eligibility & Value Guide.
State-by-State Guide to Costs & Rebates 2026
Rebates and electricity/gas prices vary across Australia. Here’s a summary of what to expect:
New South Wales
- Electricity Prices: The AER’s draft Default Market Offer (DMO) for 2026-27 proposes residential price decreases between 2.4% (-$58) and 8.2% (-$226), depending on the distribution zone (Ausgrid, Endeavour Energy, Essential Energy). The final determination is due by 26 May 2026, effective 1 July 2026.
- Gas Prices: Average usage rates are approximately 4.0 to 4.5 c/MJ, with daily supply charges around 76.8 c/day.
- Rebates: The Energy Savings Scheme (ESS) provides incentives for energy-efficient upgrades, including heat pump hot water systems. This can reduce the net cost of an HPWH to $1,800-$3,500 after ESS and federal STCs.
Victoria
- Electricity Prices: The Victorian Default Offer (VDO) is set by the Essential Services Commission. While no 2026-27 VDO draft was found in search, general trends indicate rising costs for gas-dependent households as Victoria phases out gas.
- Gas Prices: Average usage rates are approximately 3.5 to 4.0 c/MJ, with daily supply charges around 90.2 c/day. Victoria has some of the highest winter gas bills due to widespread gas heating.
- Rebates: Victoria offers some of the most comprehensive incentives:
- Solar Homes Program: Up to $1,400 rebate for solar PV and a matching interest-free loan. Also offers a hot water rebate of up to $1,000 (or $1,400 for Australian-made systems) for heat pumps.
- Victorian Energy Upgrades (VEU) program: Provides upfront discounts on eligible energy-efficient products, including heat pump hot water systems and reverse cycle air conditioners. This discount is applied directly to your invoice.
Queensland
- Electricity Prices: The AER’s draft DMO for 2026-27 proposes residential price decreases of 10.1% (-$216) for the Energex network in SE Queensland, effective 1 July 2026.
- Gas Prices: Average usage rates are approximately 3.5 to 4.0 c/MJ, with daily supply charges around 119.95 c/day.
- Rebates: While Queensland does not have a broad state-specific electrification rebate for all households, the Federal Cheaper Home Batteries Program applies. This offers around $330-$340 per usable kWh in upfront savings before the tiered reductions from 1 May 2026. There is also the Queensland Community Housing Energy Upgrades (Q-CHEU) program offering up to $4,500 for eligible community housing providers for upgrades like insulation, efficient electric appliances, and solar.
South Australia
- Electricity Prices: The AER’s draft DMO for 2026-27 proposes residential price decreases of 1.3% (-$31) for SA Power Networks, effective 1 July 2026.
- Gas Prices: Average usage rates are approximately 5.5 to 6.5 c/MJ, with daily supply charges around 84.35 c/day.
- Rebates: The Retailer Energy Productivity Scheme (REPS) obliges energy retailers to offer free or discounted energy-saving activities, including efficient reverse-cycle air conditioning and heat pump hot water systems. These are delivered through accredited providers.
Western Australia
- Electricity Prices: WA’s electricity market is different, primarily served by Synergy and Horizon Power. No DMO applies. General electricity bill credits are available for concession holders (e.g., $150 National Energy Bill Relief, $326.33 Energy Assistance Payment for eligible cardholders).
- Gas Prices: WA consistently has the lowest gas bills, with average usage rates not specified, but quarterly bills around $115. Alinta Energy is the dominant retailer.
- Rebates: The WA Residential Battery Scheme offers rebates up to $1,300 for Synergy customers and $3,800 for Horizon Power customers on batteries, stackable with the Federal Cheaper Home Batteries Program. Eligible households can also access interest-free loans up to $10,000 through Plenti. VPP enrolment is mandatory for the state scheme.
Tasmania
- Electricity Prices: Tasmania is not covered by the DMO. Prices are regulated by the state. No specific 2026-27 changes were found in search.
- Gas Prices: Average usage rates are among the highest at approximately 5.5 to 6.5 c/MJ, with daily supply charges around 81.7 c/day.
- Rebates: The Energy Saver Loan Scheme offers interest-free loans for energy-efficient products, including heat pumps and solar. Heat pump hot water system costs are notably higher in Tasmania, averaging $6,118 installed nationally.
Australian Capital Territory
- Electricity Prices: The AER’s DMO applies. Draft DMO for 2026-27 proposes residential price decreases.
- Gas Prices: Average usage rates are around 4.11 c/MJ, with daily supply charges around 78.31 c/day.
- Rebates: The Sustainable Household Scheme (SHS) provides low-interest loans (3% interest rate from 1 July 2025) of $2,000-$15,000 over up to 10 years for a range of electrification upgrades, including heat pumps, electric heating/cooling, electric stove tops, and household battery storage systems. Solar PV is generally excluded from the loan for most households from 1 July 2025, but still available for concession holders.
Disconnecting from Gas: The Final Step
Once all your gas appliances have been replaced with electric alternatives, the final step is to formally disconnect from the gas network. This involves contacting your gas retailer to arrange for the gas meter and supply line to be removed from your property.
Historically, the cost for a full gas abolishment (removal of meter and pipe back to the main supply) has been substantial, often exceeding $1,000. However, a significant change is coming: from 1 July 2026, the cost for a full gas abolishment is set to decrease to approximately $250-$260 in areas regulated by the AER (NSW, VIC, QLD, SA, TAS, ACT).
This reduction makes the complete disconnection process far more financially viable. Be sure to confirm the exact fee with your gas retailer closer to the date. If you only wish to cap your gas supply without full abolishment, costs are typically lower, around $70-$130, plus potential call-out fees.
Bottom Line
Electrifying your Australian home in 2026 is a smart financial and environmental decision. The combination of efficient electric appliances, falling solar and battery costs (supported by federal and state rebates), and the upcoming reduction in gas disconnection fees creates an unprecedented opportunity. Prioritise replacing your gas hot water and heating systems first, then consider induction cooking. Always seek multiple quotes from accredited installers and verify your eligibility for state-specific rebates to maximise your savings. The path to an all-electric, lower-bill future is clearer and more accessible than ever before.