Taking your Australian home off gas in 2026 is one of the most effective ways to lower your energy bills, reduce your carbon footprint, and improve your family’s health. The process involves systematically replacing your gas appliances with efficient electric alternatives and then ceasing your gas supply. For most households, this transition will save between $1,000 and $1,900 per year on energy bills, particularly when paired with rooftop solar. The key is to replace appliances strategically, access government rebates to reduce upfront costs, and reap the long-term savings of an all-electric, solar-powered home.
Why Go All-Electric in 2026?
The case for electrification has never been stronger. Gas prices remain stubbornly high, with the average Australian household paying around $788 per year on gas bills, a figure that can exceed $1,000 for homes with gas heating. Meanwhile, modern electric appliances are incredibly efficient. A reverse-cycle air conditioner, for instance, is 3 to 4 times more efficient at heating than a gas furnace.
A child living with gas cooking in the home faces a comparable risk of asthma to a child living with household cigarette smoke. This is because gas stoves can release pollutants like nitrogen dioxide and formaldehyde into the home.
Beyond the savings, state governments are actively encouraging the transition. Victoria has banned gas connections in new homes since January 2024, and the ACT is phasing out gas entirely by 2045. This government-led shift means remaining on the gas network will likely become more expensive over time as the customer base shrinks.
Step 1: Replace Your Gas Heating and Cooling
For most homes, space heating is the largest gas user. The best electric replacement is a reverse-cycle air conditioner (also known as a heat pump). These units provide both heating and cooling in one appliance and are significantly cheaper to run than gas heaters.
| Appliance | Typical Annual Running Cost (Melbourne) | Upfront Cost (Installed) |
|---|---|---|
| Ducted Gas Heating | $1,400 – $2,200 | $5,000 - $12,000 |
| Reverse-Cycle Air Conditioner | $400 – $900 | $2,500 - $15,000 |
What to Buy: Look for a model with a high Coefficient of Performance (COP) for heating. A good quality 3.5kW split system, ideal for a living area, can be purchased and installed for around $2,500 - $4,000. Popular, highly-efficient models in 2026 include the Daikin Alira X series, with a 3.5kW unit costing approximately $1,290 for the unit alone.
Step 2: Switch to Heat Pump Hot Water
Water heating is the second-biggest energy user in most homes. An electric heat pump hot water system is the most efficient replacement for a gas unit, using up to 80% less energy.
| Appliance | Typical Annual Running Cost | Upfront Cost (Installed) |
|---|---|---|
| Gas Storage Hot Water | $350 - $700 | $1,500 - $2,500 |
| Heat Pump Hot Water | $150 - $400 | $4,000 - $7,000 |
What to Buy: The Sanden Eco Plus is a top-tier heat pump system known for its high efficiency and quiet operation. Expect to pay between $5,900 and $6,800 for a 250L unit (supply only), before state rebates which can significantly reduce this cost.
Step 3: Upgrade to Induction Cooking
The final major gas appliance is the cooktop. Induction cooktops are the electric successor to gas, offering faster heating, more precise temperature control, and a safer cooking surface that’s easier to clean. They are also more energy-efficient than both gas and traditional electric coil cooktops.
| Appliance | Performance & Efficiency | Upfront Cost (Unit Only) |
|---|---|---|
| Gas Cooktop | Slower, less efficient, indoor air pollution | $500 - $2,000 |
| Induction Cooktop | Faster, 85-90% efficient, no fumes | $1,000 - $3,000+ |
What to Buy: Models like the Bosch Series 8 induction cooktops are highly regarded for their reliability and features like FlexInduction zones. An 80cm Bosch Series 8 model can be found for around $2,276.
Step 4: Access Rebates and Incentives (State-by-State)
Upfront cost is a major barrier, but significant government incentives exist in 2026 to help you make the switch. These are typically accessed by the installer and provided as a point-of-sale discount.
| State | Key Program(s) | What’s Available |
|---|---|---|
| Victoria | Victorian Energy Upgrades (VEU) | Substantial rebates on heat pump hot water and reverse-cycle air conditioners. Often covers the majority of the cost for a hot water upgrade. |
| NSW | Energy Savings Scheme (ESS) | Rebates for upgrading to efficient appliances like heat pumps and reverse-cycle ACs, often worth several hundred dollars. |
| ACT | Sustainable Household Scheme | Interest-free loans of up to $15,000 to assist with the costs of electrification upgrades. |
| SA | Retailer Energy Productivity Scheme (REPS) | Retailers offer incentives for households to install energy-efficient appliances. |
| QLD, WA, TAS | Federal Schemes / Other | Primarily access the federal Cheaper Home Batteries Program. WA has a state-based battery rebate up to $1,300 for Synergy customers. |
Step 5: Disconnect the Gas Supply (and Stop Paying for It)
Once all your gas appliances are replaced, you can close your gas account and stop paying the daily supply charge, which can be 60 to 90 cents per day, saving you $220-$330 per year. You have two options:
- Disconnection: Your retailer arranges for the meter to be ‘capped’. This is cheaper but leaves a live gas pipe on your property.
- Abolishment: The pipe connecting your property to the gas main in the street is physically removed. This is the safest, most permanent option.
| State | Disconnection Cost (Approx.) | Abolishment Cost (Approx.) |
|---|---|---|
| Victoria | $100 - $200 | $220 (Capped by AER) |
| NSW | $150 - $200 | $800 - $1,200+ |
| ACT | ~$185 | ~$950 |
| SA | Varies by retailer | Contact retailer |
| WA | Varies by retailer | ~$1,200+ |
In Victoria, the choice is clear: the state has capped the cost of abolishment at $220, making it the obvious and safest choice. In other states, the high cost of abolishment means a simple disconnection is often the more pragmatic first step.
Bottom Line
For most Australian households in 2026, taking your home off-gas is a financially savvy and environmentally responsible decision. The combination of high gas prices and super-efficient electric appliances means the savings are significant and ongoing. The best approach is a gradual one: replace each gas appliance with a highly efficient electric alternative as it reaches the end of its life. Start with your heating and hot water systems, as they offer the biggest savings. Crucially, engage with accredited installers who can access state-based rebates on your behalf, as these incentives can dramatically reduce the upfront cost of new appliances. Once you’re fully electric, permanently abolishing your gas connection—especially in Victoria where the cost is capped—is the final step to securing a cheaper, cleaner, and healthier energy future for your home.