This comprehensive guide explains why making the switch could be a game-changer for your household budget, while also benefiting the environment.
Published on 11/05/2025
By Pallav Verma
Energy Comparison
Rising energy costs are pushing Australian households to rethink their energy consumption. With gas prices continuing to fluctuate and electricity increasingly sourced from renewables, many are asking: Is switching to an all-electric home a smarter financial move?
According to the 2024 AEMC Residential Electricity Price Trends Report, households that fully transition from gas to electricity could reduce their total energy costs by up to 70%. This comprehensive guide explains why making the switch could be a game-changer for your household budget, while also benefiting the environment.
Gas prices in Australia have surged in recent years due to a combination of global demand, export contracts, and domestic supply constraints. According to the Australian Energy Regulator (AER), wholesale gas prices in 2023 were 40% higher than in 2020, leading to steeper household gas bills.
While gas prices are rising, electricity prices are projected to decrease by 13% over the next decade, per the AEMC’s 2024 report. This is largely due to the expansion of renewable energy sources like solar, wind, and battery storage, which are driving down wholesale electricity costs.
Federal and state governments are actively encouraging households to go all-electric, offering rebates and incentives for electric appliances, solar panels, and battery storage. Programs such as the Solar Homes Program (Victoria) and Energy Efficiency Grants (NSW, QLD, SA, and VIC) help cover upfront costs for switching.
Switching from gas to electricity affects multiple aspects of household energy consumption, including heating, cooking, and hot water. Here’s how the savings stack up:
| Energy Usage | Gas Annual Cost (Estimate) | Electric Annual Cost (Estimate) | Savings |
| Space Heating | $1,000 | $450 | $550 |
| Hot Water System | $800 | $350 | $450 |
| Cooking (Oven/Stove) | $250 | $100 | $150 |
| Total Annual Costs | $2,050 | $900 | $1,150 |
These figures are based on estimates from Renew (an Australian non-profit energy research group), showing that a typical household could save over 50% by switching. Households that add rooftop solar could increase savings up to 70% or more by further reducing electricity costs.
A high-efficiency reverse cycle air conditioner can heat a room four times more efficiently than a gas heater, making it the cheaper and more effective option.
Electric heat pumps consume 75% less energy than traditional gas hot water systems, providing significant savings.
Induction stoves are twice as efficient as gas stoves, using less energy and improving kitchen safety.
Going all-electric isn’t just about saving money—it’s also a win for the environment.
According to the Australian Renewable Energy Agency (ARENA), households that switch from gas to electricity can reduce carbon emissions by 50-80%, especially if they use solar power.
Studies from Harvard University found that gas appliances contribute to indoor air pollution, increasing exposure to nitrogen dioxide and other harmful pollutants. All-electric homes improve air quality, reducing respiratory risks.
Switching to an all-electric home requires investment in new appliances, but government rebates and long-term savings offset these costs.
| Upgrade | Typical Cost | Government Rebate | Final Cost After Rebate |
| Heat Pump Hot Water | $2,500-$4,500 | Up to $1,000 | $1,500-$3,500 |
| Induction Cooktop | $1,500-$3,000 | Up to $500 | $1,000-$2,500 |
| Reverse Cycle Air Con | $2,000-$5,000 | Up to $1,000 | $1,000-$4,000 |
| Rooftop Solar (6.6kW) | $6,000-$9,000 | Up to $3,000 | $3,000-$6,000 |
Yes—especially if your current gas appliances are nearing the end of their lifespan. The combination of rising gas prices, falling electricity prices, high-efficiency electric appliances, and government incentives makes 2024 the best time to go all-electric.
Final Thoughts: Should You Make the Switch?
Switching from gas to electricity is a smart financial and environmental move. With savings of up to 70%, improved home efficiency, and cleaner air, it’s an investment that pays off in both the short and long term. Plus, with rebates available, the initial transition cost is more affordable than ever.
Key Takeaways:
Ready to switch? Start by comparing energy plans and finding rebates in your area today!
