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What is the Gas Substitution Roadmap?

The Gas Substitution Roadmap is helping our state navigate the path to net zero emissions while cutting energy bills and ensuring reliability.

The Roadmap outlines how we will use

  • energy efficiency
  • electrification
  • renewable hydrogen
  • biomethane

to drive down bills and cut carbon emissions.

The Roadmap will help empower Victorian households and businesses to embrace sustainable alternatives to fossil gas and enhance access to an affordable, secure, reliable and safe energy supply.

Our Gas Substitution Roadmap update provides important information about the progress made since the release of the first Roadmap in 2022.

Why do we need to move away from fossil gas?

Over 2 million Victorians use gas in their homes and businesses – more than any other state or territory

The Victorian gas sector contributes to around 17% of our state’s net greenhouse gas emissions and must play its part in reducing emissions over time. And while our state has been a consistent producer and net gas exporter, helping to meet the needs of Victorians and Australians in east coast gas markets, moving away from fossil gas is a key part of our renewable energy future. This must be balanced with the need for reliable, safe, affordable energy.

Going all-electric in our homes not only takes the pressure off gas demand it also limits consumers’ exposure to international prices.

Going all-electric also helps Victorians save money. Going all-electric puts around $1,000 per year back in the pockets of new-home owners, or over $2,200 per year with solar installed. While converting an existing home with solar panels from gas to electricity can save around $1,700 a year on energy bills. This is in addition to around $1,000 of savings per year from an existing 6.6 kW solar system.

What are the key reforms of the Gas Substitution Roadmap – and how does this affect me?

  • Rapid electrification for homes and businesses:
    • new homes requiring a planning permit will be required to be all-electric from 1 January 2024
    • increased minimum energy efficiency standards for rented homes
    • expansion of the VEU program to include induction cooktops – we will work with suppliers and retailers of induction cooktops to determine the best way to bring these products into the scheme quickly
    • a regulatory impact statement (RIS) will investigate options to progressively electrify all new residential, and most commercial buildings where appropriate electric appliance options are readily available
    • the same RIS will consider the costs and benefits of requiring existing gas appliances in homes and relevant commercial buildings to be replaced with electric appliances when the current appliance reaches end-of-life
    • mandatory 7-star efficiency standards for new home construction from May 2024
    • all new government buildings to be all-electric, including new schools and hospitals.
  • Supporting reforms:
    • development of renewable gas sector in Victoria
    • focus on a responsible and balanced approach to maintaining adequate fossil gas supplies
    • build industry skills and capacity.

What consultation has been undertaken as part of the Gas Substitution Roadmap?

The Victorian Government continues to engage with stakeholders across the energy, manufacturing, business, building and construction sectors, installing trades, local government, environment and consumer groups during the gas sector’s transition to net zero emissions. Feedback to date has included:

  • 300 submissions in response to the Victorian Gas Substitution Roadmap Consultation Paper
  • Around 50 submissions in response to the Renewable Gas Consultation Paper released in October
  • Attendance at industry forums
  • Individual meetings with stakeholders.

Page last updated: 12/11/24