On this page:

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 drive down bills and cut carbon emissions using:

  • energy efficiency
  • electrification
  • renewable hydrogen
  • biomethane.

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 16% 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 more 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 $880 per year back in the pockets of new-homeowners, or approximately $1,820 per year with solar installed, while converting an existing home with solar panels from gas to electricity can save around $2,000 a year on energy bills. This is in addition to around $740 of savings per year from an existing 6.6 kW solar system.

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

  • Measures already in place to drive rapid electrification for homes and businesses:
    • in July 2023, the Australian Energy Regulator capped gas abolishment fees at $220 (ex GST), further lowering the cost of going all-electric
    • from July 2023 all new government buildings are to be built all-electric, including new schools and hospitals
    • new homes requiring a planning permit will be required to be all-electric from 1 January 2024
    • mandatory 7-star efficiency standards for new home construction from May 2024
    • from April 2024, the government prohibited Victorian gas distribution businesses from offering inducements to connect to gas or purchase and install gas appliances
    • from 1 January 2025, customers will pay full up-front costs of a new gas connection instead of the cost being shared by all gas-users under the updated the Gas Distribution Code of Practice published by Essential Services Commission . This brings gas in line with the current practice for new electricity and water connections
    • expansion of the VEU program to include induction cooktops.
  • 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.

Proposed reforms include:

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:

Page last updated: 23/01/25