Going all-electric is one of the biggest financial decisions an Australian homeowner can make — but the home electrification cost varies enormously by house size, appliances replaced, and how much solar and battery capacity you want. A 2-bedroom unit can be fully electrified for under $20,000, while a large 5-bedroom detached home can easily exceed $100,000 before rebates. Here's a realistic, appliance-by-appliance breakdown of what it costs to go all electric in an Australian home — and how much of that you can recover in rebates and energy bill savings.
What "Electrifying" Actually Means
A fully electrified home replaces every gas or petrol energy source with electric alternatives, typically powered by rooftop solar. In practice that means:
- Heat pump hot water (replacing gas or resistive electric)
- Induction cooktop (replacing gas)
- Electric oven (already standard in most homes)
- Reverse cycle air conditioning for both heating and cooling (replacing gas ducted or wall heaters)
- Rooftop solar sized to cover daytime loads and charge storage
- Home battery to time-shift solar generation into evening peak
- EV charger (if you drive) to replace petrol spending with electricity
- Disconnecting from the gas network entirely once all gas appliances are gone
Done well, an electrified home eliminates gas bills, slashes electricity bills to near zero (or into credit), and removes petrol costs if paired with an EV.
Cost by House Size
These figures are indicative 2026 Australian market rates for a complete electrification including solar and battery, before state and federal rebates. They assume existing electrical wiring is adequate and not a major heritage or strata constraint.
| Home Type | Size | Before Rebates | After Rebates |
|---|---|---|---|
| 2-bedroom unit / small townhouse | 60–90 m² | $8,000–$18,000 | $5,000–$12,000 |
| 3-bedroom detached | 120–160 m² | $20,000–$40,000 | $12,000–$26,000 |
| 4-bedroom detached | 200–250 m² | $35,000–$65,000 | $22,000–$42,000 |
| 5-bedroom large home | 280 m²+ | $55,000–$100,000+ | $35,000–$65,000+ |
The range within each bracket reflects how much solar and battery capacity you install, whether you upgrade the switchboard and wiring, and the number of gas appliances being replaced.
Appliance-by-Appliance Costs
If you're planning a phased electrification, here's what each component typically costs as a standalone installation — useful for sequencing decisions and applying rebates.
| Component | Typical Installed Cost | Typical Rebate | Net Cost |
|---|---|---|---|
| Heat pump hot water (270–300 L) | $3,500–$5,500 | $1,500–$3,500 | $1,000–$3,000 |
| Induction cooktop (incl. install) | $1,200–$2,500 | $0–$900 (VIC VEU) | $900–$2,200 |
| Electric oven (already common) | $800–$2,500 | $0 | $800–$2,500 |
| Reverse cycle split system (5–7 kW) | $2,400–$4,200 | $300–$1,800 | $1,500–$3,500 |
| Ducted reverse cycle (whole house) | $9,000–$18,000 | $500–$2,000 | $7,500–$16,500 |
| Solar PV 6.6 kW | $6,000–$9,500 | $2,200–$3,000 STCs | $3,800–$6,500 |
| Solar PV 10 kW | $9,500–$14,000 | $3,300–$4,500 STCs | $6,200–$9,500 |
| Solar PV 13 kW | $12,000–$18,000 | $4,300–$5,800 STCs | $7,700–$12,500 |
| Battery 10 kWh | $9,000–$13,000 | $3,300–$6,300 | $5,500–$9,000 |
| Battery 13 kWh | $12,000–$17,000 | $4,200–$8,100 | $7,500–$12,000 |
| EV charger 7 kW (home install) | $1,500–$2,800 | $0–$500 | $1,000–$2,800 |
| Gas disconnection fee | $220–$900 | $0 | $220–$900 |
| Switchboard upgrade (if required) | $1,800–$3,500 | $0 | $1,800–$3,500 |
How Rebates Shrink the Net Bill
Across Australia, federal and state rebates commonly reduce the gross electrification cost by 30–50% once fully stacked. Key stackable programs in 2026 include:
- Federal Small-scale Technology Certificates (STCs) on solar PV and heat pump hot water
- Cheaper Home Batteries Program (~$330/kWh usable) for batteries up to 50 kWh
- State-based schemes: Victorian Energy Upgrades (VEU), NSW ESS and PDRS, SA Home Battery and Retailer Energy Productivity Scheme, Solar Victoria Solar Homes Program
- Gas disconnection incentives in some states
- Low-income streams delivering fully funded heat pump and draught proofing upgrades
A 3-bedroom Victorian home electrifying with solar, battery, heat pump and induction can typically reduce a $32,000 gross cost down to around $18,000–$20,000 after stacking VEU, STCs and the federal battery rebate.
Annual Energy Bill Savings After Electrification
Once the capital cost is in, ongoing savings are significant. A typical Australian household currently spending $2,200 on electricity, $1,100 on gas, and $2,800 on petrol (total ~$6,100/year) can expect post-electrification running costs of:
- 2-bed unit: $200–$600/year, saving roughly $2,000–$3,000 annually on bills
- 3-bed home: $300–$900/year, saving $2,500–$4,500 annually
- 4-bed home with EV: $400–$1,200/year, saving $4,000–$6,500 annually (including petrol)
- 5-bed large home with EV and pool: $600–$1,800/year, saving $5,500–$8,000 annually
Payback Periods
Electrification payback in Australia typically lands between 6 and 10 years after rebates, depending on energy prices, solar export rates, and how much of the load is shifted to self-consumption. Individual components pay back faster:
- Heat pump hot water: 3–6 years
- Solar PV (6.6 kW): 4–7 years
- Induction cooktop vs gas: 7–15 years (mostly a comfort and health upgrade)
- Battery: 7–12 years, depending on tariff structure
- EV vs petrol car: 3–6 years on fuel savings alone
A Phased Approach Spreads the Spend
Few households electrify in a single weekend. A sensible order that lets each step fund the next:
- Year 1: Solar PV (6.6–10 kW) — immediate bill reduction, funds future steps
- Year 1–2: Heat pump hot water when the gas unit fails or before — biggest efficiency gain
- Year 2–3: Induction cooktop and draught proofing — lower cost, improves comfort
- Year 3–4: Reverse cycle heating/cooling — replace gas ducted when due
- Year 4–5: Battery once solar is generating excess, and EV if you need a new car
- Year 5–6: Disconnect gas entirely, eliminating the daily supply charge
Phasing also helps with rebate stacking — several state schemes fund upgrades one at a time rather than as bundled projects.
Model Your Own Electrification Costs
The numbers above are typical ranges, but the actual cost to go all electric at your home depends on your gas appliances, roof orientation, driving patterns, and existing wiring. Our Whole Home Savings Dashboard estimates your electrification cost, rebates, annual savings, and payback period across every major system — so you can plan a phased budget with confidence.