• Victoria Proposes Gas Phase-Out in Homes and Businesses
• Industry-Driven Initiative to Address Insulation Skills Shortage
• Nationwide Electrification Trials to Drive Gas Phase-Out in Australian Homes

Victoria Proposes Gas Phase-Out in Homes & Businesses.

Having the highest gas usage in Australia with over two million gas-connected residences and tens of thousands of businesses, Victoria is increasingly driving toward electrification. Victoria is moving forward with plans to reduce reliance on gas, releasing a Regulatory Impact Statement (RIS) outlining options for electrifying both new and existing buildings. The RIS, developed by the Department of Transport and Planning (DTP) and the Department of Energy, Environment and Climate Action (DEECA), seeks public feedback on a preferred approach and several alternatives. This initiative follows the state’s December 2023 commitment to explore building electrification as part of its Gas Substitution Roadmap, aiming for net-zero emissions and lower energy bills.

The four options presented in the RIS are outlined below, and explain the scenarios where electrification would be required within the upcoming policy:

• Option 1: All-electric new residential and commercial buildings.
• Option 2: Electrification of all new and existing residential and commercial buildings (excluding existing commercial kitchens).
• Option 3 (Preferred): Electrification of all new and existing residential buildings (excluding existing residential cooking) and all new commercial buildings.
• Option 4: Electrification of all new and existing residential buildings.

The public consultation period runs until 28 February 2025.

Industry-Driven Initiative to Address Insulation Skills Shortage.

Australia’s building industry is facing a shortage of qualified insulation installers and inspectors, hindering progress toward energy-efficient buildings. BuildSkills, the government’s Jobs and Skills Council for the built environment, is addressing this gap by developing nationally recognised training programs. This initiative, driven by industry demand, will provide crucial training resources, ensuring higher quality insulation and a more sustainable built environment.

Nationwide Electrification Trials to Drive Gas Phase-Out in Australian Homes.

Australia is expanding its push for household electrification with nationwide with suburb-wide trials designed to accelerate the transition away from gas. Energy Minister Chris Bowen has directed the Australian Renewable Energy Agency (ARENA) to fund more pilot programs like the successful Electrify 2515 initiative in Wollongong, NSW, which offers subsidies for solar batteries and electric appliances. Building on existing projects in SA and NT, ARENA will now explore funding trials in ACT, WA, QLD, VIC and TAS.

Small-scale electrification pilots are seen as a key roadmap to nationwide household electrification, offering both emissions reductions and cost savings. A 2023 CSIRO analysis estimated potential annual savings of up to $2,250 for homeowners switching to all-electric appliances and an electric car. However, the high upfront cost of electric appliances remains a major barrier, making government subsidies crucial for a successful nationwide transition away from gas. The federal government has already committed $800 million to upgrade over 100,000 social housing properties with energy-efficient appliances, demonstrating its commitment to this transition.

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.