Whole home electrification means replacing every gas appliance in your home with an efficient electric alternative, powered as much as possible by rooftop solar. It's the single most impactful thing an Australian household can do to reduce energy costs and carbon emissions. This roadmap breaks down the journey into practical phases, with realistic costs and savings for each step.
What Electrification Means
The typical Australian home burns natural gas for three things: hot water, space heating, and cooking. Some homes also use gas for clothes drying or pool heating. Electrification means switching all of these to electric alternatives — specifically, efficient electric alternatives like heat pumps and induction cooktops that use far less energy than old-style resistive electric appliances.
When paired with rooftop solar, a fully electric home can run on sunshine for most of the year, slashing energy bills to a fraction of what a dual-fuel home pays. And by disconnecting from the gas network entirely, you eliminate the gas supply charge — a fixed fee of $310–$365 per year that you pay regardless of how much gas you use.
The Typical Gas-Dependent Australian Home
Before electrification, a typical Australian household with gas might look like this:
- Gas hot water system (storage or instantaneous) — $400–$700/yr in gas
- Gas ducted heating — $500–$1,200/yr in gas
- Gas cooktop — $60–$120/yr in gas
- Gas supply charge — $310–$365/yr (fixed, regardless of usage)
- Electricity bill — $1,500–$2,500/yr for everything else
- Total energy costs: $2,800–$4,900/yr
Phase 1: Solar Panels (Year 1)
| Detail | Value |
|---|---|
| Recommended system | 6.6–10kW |
| Cost (after STCs) | $5,000–$8,000 |
| Annual savings | $1,200–$2,000 |
| Payback period | 3–5 years |
Solar is the foundation of electrification. It provides the cheap electricity that makes every subsequent upgrade more economical. Size your system for your future all-electric load, not just your current consumption — our analysis of home electrification cost by house size gives realistic totals for small, medium, and large homes.
Phase 2: Heat Pump Hot Water (Year 1–2)
| Detail | Value |
|---|---|
| Cost (after rebates) | $2,000–$3,500 |
| Annual savings | $400–$800 |
| Payback period | 3–5 years |
Hot water is typically the largest gas expense. A heat pump uses just one-third to one-quarter of the energy of a gas system. Timed to run during solar hours, it can heat your water for almost free. With federal STCs and state rebates, the net cost is very manageable.
Phase 3: Replace Gas Heating (Year 2–3)
| Detail | Value |
|---|---|
| Cost (after rebates) | $3,000–$8,000 |
| Annual savings | $500–$1,200 |
| Payback period | 4–7 years |
Modern reverse cycle air conditioners produce 3–5 units of heat for every unit of electricity consumed (a COP of 3–5), making them 3–5 times more efficient than gas heating. In Victoria, VEU rebates of up to $5,530 can make this upgrade remarkably affordable. A quality split system or ducted reverse cycle unit also provides cooling in summer — something gas heating never could.
Phase 4: Induction Cooktop (Year 2–3)
| Detail | Value |
|---|---|
| Cost | $800–$2,000 |
| Annual savings | $60–$120 (gas savings) |
| Payback period | 7–15 years (on energy savings alone) |
The cooktop is often the last gas appliance standing. While cooking gas costs are relatively small, replacing the cooktop is essential for disconnecting from gas entirely and eliminating the $310–$365/yr supply charge. Induction cooktops are faster, more responsive, and safer than gas. Many people who switch say they'd never go back.
Phase 5: Battery Storage (Year 3–5)
| Detail | Value |
|---|---|
| Cost (after rebates) | $8,000–$14,000 |
| Annual savings | $500–$1,000 |
| Payback period | 8–12 years |
A battery stores excess solar generation during the day and powers your home in the evening and overnight, dramatically reducing what you buy from the grid. Battery payback is longer than solar or heat pumps, but prices are falling, and for households that want maximum self-sufficiency, it's the next logical step. Federal and state battery rebates improve the economics further.
Phase 6: Electric Vehicle (When Ready)
| Detail | Value |
|---|---|
| EV price range | $35,000–$65,000 |
| Annual fuel savings vs petrol | $1,500–$2,500 |
| Charging cost (from solar) | Near zero |
An EV charged from your rooftop solar is the ultimate extension of home electrification. The average Australian spends $2,000–$3,500/yr on petrol. An EV charged from solar costs almost nothing to run. Even charging from the grid at off-peak rates is roughly 70–80% cheaper than petrol.
Total Investment and Returns
| Metric | Value |
|---|---|
| Total investment (Phases 1–5) | $20,000–$35,000 |
| Total annual savings | $4,000–$7,000 |
| Gas supply charge eliminated | $310–$365/yr |
| Overall payback period | 4–7 years |
| Annual CO₂ reduction | 5–10 tonnes |
Use our Whole Home calculator to model the full electrification journey for your specific household — with your state's electricity rates, your gas bills, and all applicable rebates factored in.