More Australian households than ever are considering disconnecting their gas supply entirely. With rising gas prices, the availability of efficient electric alternatives, and growing awareness of the health and environmental impacts of gas, going all-electric is becoming increasingly attractive. But is it the right move for you? Let's run through the full cost-benefit analysis.
The Hidden Cost of Keeping Gas Connected
Even if you barely use any gas, you're paying a daily supply charge just to keep the connection active. In 2026, this charge typically sits between $0.85 and $1.00 per day — that's $310–$365 per year before you've used a single megajoule of gas.
For many households, this supply charge makes up a significant portion of their total gas bill, especially if gas is only used for cooking or hot water. You might be paying $600–$800 per year on gas, with nearly half of that being the supply charge alone.
Cost to Replace Gas Appliances
Before you can disconnect gas, you need to replace every gas appliance in your home with an electric alternative. Here's what each replacement typically costs:
| Gas Appliance | Electric Replacement | Replacement Cost (installed) |
|---|---|---|
| Gas hot water (storage) | Heat pump hot water | $2,000–$3,500 (after rebates) |
| Gas ducted heating | Reverse cycle air conditioning | $3,000–$8,000 |
| Gas wall heater | Split system reverse cycle | $1,500–$3,000 |
| Gas cooktop | Induction cooktop | $800–$2,000 |
| Gas oven | Electric oven | $600–$1,500 |
| Gas disconnection fee | — | $200–$600 |
| Total (typical home) | $8,000–$15,000 |
The total cost varies enormously depending on how many gas appliances you have and whether you need new electrical circuits, ducting modifications, or other building work. Our itemised guides to the cost of replacing a gas heater with reverse cycle and converting gas hot water to electric break these two big-ticket items down in detail.
Annual Savings After Going All-Electric
Once you've replaced your gas appliances and disconnected, here are the savings you can expect:
| Saving Source | Annual Amount |
|---|---|
| Gas supply charge eliminated | $310–$365 |
| Lower hot water costs (heat pump vs gas) | $300–$600 |
| Lower heating costs (reverse cycle vs gas ducted) | $200–$600 |
| Lower cooking costs (induction vs gas) | $40–$80 |
| Total annual savings | $800–$2,000 |
For a household with solar panels, savings can be even higher as much of the electricity consumption can be offset by free solar generation during the day.
Payback Calculation
Using the mid-range figures, here's a typical payback scenario:
- Total replacement cost: $11,000
- Less rebates (heat pump, etc.): −$2,000
- Net cost: $9,000
- Annual savings: $1,200
- Payback period: approximately 7.5 years
After the payback period, you're saving $1,200+ per year indefinitely. Over 15 years, total savings could reach $10,000–$20,000 — more if gas and electricity prices continue to rise.
When NOT to Disconnect Gas
Going all-electric isn't the right choice for every household. Consider keeping your gas connection if:
- Your gas appliances are relatively new: If your gas ducted heating or hot water is only 2–3 years old, it may not make financial sense to replace it early. Wait until it needs replacing.
- You have a heritage home with specific requirements: Some heritage-listed properties have restrictions on external modifications that could make heat pump or air conditioning installation difficult.
- You have a gas pool heater: Electric pool heat pumps exist but are more expensive for large pools. If you have a large pool that's gas-heated, the economics may not stack up.
- You're a serious home cook who strongly prefers gas flame: While induction is objectively better in most ways, some professional-style cooking techniques (wok cooking, charring) work differently on induction. However, most home cooks adapt quickly and prefer induction within weeks.
- Your electrical supply is limited: Very old homes with small switchboards and single-phase power may need a significant electrical upgrade before they can support all-electric appliances. Get an electrician's assessment first.
The Environmental Case
Beyond the financial benefits, disconnecting gas has significant environmental advantages. Natural gas is a fossil fuel, and burning it in your home produces carbon dioxide, contributing to climate change. Gas appliances also release nitrogen dioxide (NO₂) indoors, which studies have linked to respiratory issues — particularly in children.
A typical household that goes all-electric and has rooftop solar can reduce its carbon emissions by 3–5 tonnes per year. As Australia's electricity grid continues to decarbonise with more renewable generation, the emissions benefit only grows over time.
The Verdict
For most Australian homeowners, disconnecting gas makes strong financial and environmental sense — especially if you have solar panels or plan to install them. The upfront cost is significant, but the ongoing savings are substantial and compound year after year. The smartest approach is to replace gas appliances one at a time as they age out, starting with the most expensive to run (usually hot water), and disconnect gas once the final appliance is replaced.