When an appliance reaches the end of its life and needs to be replaced, Australia's government in Victoria has historically allowed gas networks to offer rebates to incentivize the purchase of a new gas appliance. Now, that's over — and the Institute for Energy Economics and Financial Analysis (IEEFA) called the decision "a win for consumers."
IEEFA reports that their research gives several compelling arguments for this approach, including direct cost savings, improved energy security, and progress toward emissions targets.Â
One 2023 study found that Victorians are spending approximately 912 million Australian dollars ($615 million) a year in unnecessary lifetime costs from these new gas appliances. IEEFA's Energy Finance Analyst for Electricity, Jay Gordon, said, "If gas appliances were required to be replaced with efficient electric alternatives at their end of life, our research found the average Victorian home could save [$809] a year on their energy bills."
This is an important note, given that an initial discount may make a gas appliance seem more affordable. Indeed, IEEFA's analysis found that at least 75% of the appliance's lifetime costs come not from the purchase but from the maintenance.
"Gas is no longer the cheap household fuel it once was," Gordon said. "All-electric homes are the most cost-effective option for Victorians, and it's increasingly clear that a managed phase-down of gas networks is in the long-term interests of consumers."
And the more people make the switch, the better for everyone. Those households holding onto gas appliances may have to pay higher prices as gas networks struggle to stay profitable.
Upgrading to electric, thermal, solar, and smarter home energy management systems is also highly incentivized in the U.S., where the Inflation Reduction Act laid out numerous tax credits for making the switch.
With heating and cooling responsible for roughly 20% of many countries' planet-warming emissions, these changes could become instrumental in achieving emissions goals for a cooler future.
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