Victoria announces ban on gas connections to new homes from January 2024

Victoria announces ban on gas connections to new homes from January 2024 | Victoria | The Guardian

Gas connections will be banned in Victorian homes and government buildings built from next year.

The Victorian government announced the major energy reform on Friday as part of its plan to reach net zero emissions in the state by 2045.

The government estimates households will save up to $1,000 off their annual energy bills – or $2,200 if they have solar installed – and reduce household emissions under the change.

From 1 January, new residential properties requiring planning permits, as well as government buildings including schools and hospitals, will only be powered by electricity.

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The state’s energy minister, Lily D’Ambrosio, said the changes would help a new homeowner save on their energy bills.

“We know the cost of living for Victorians is getting bigger and bigger,” she told reporters on Friday. “Doing something about it is exactly what today is about.”

Environment Victoria said the changes showed gas had “no future” in the state.

“Gas is an expensive and polluting fossil fuel,” Environment Victoria’s chief executive, Jono La Nauze, said on Friday. “The long-term trend is that gas prices will keep rising whilst renewable electricity gets cheaper. It simply makes no sense to keep connecting new homes to the energy source of the past.”

The Greens backed the reform but said the benefits would be undermined by the government’s backing of coal and gas projects such as gas drilling near the Twelve Apostles. The change was also supported by the Climate Council, Friends of the Earth Melbourne and the Energy Efficiency Council.

The Royal Australian College of General Practitioners said the changes would reduce exposure to indoor air pollution and help tackle climate change. The RACGP’s co-deputy chair, Dr Aadhil Aziz, said the reform was a practical way to improve health.

“Gas stoves expose people to respiratory irritants, which leads to a multitude of respiratory conditions, and research indicates this includes triggering asthma in children,” he said.

The announcement comes after Victoria last year announced it would scrap mandatory gas connections on new homes, which will be phased out this year.

A parliamentary committee recommended the Andrews government consider a ban on gas connections in new homes to help accelerate the state’s transition to renewables.

Victoria has the highest use of residential gas in Australia, with about 80% of homes connected. Gas remains the state’s dominant fuel source, particularly for heating homes during winter.

The gas sector contributes about 17% of the state’s emissions, and the move to electric systems is a key element of meeting Victoria’s nation leading emissions reduction targets of 75% to 80% by 2035 and net zero by 2045.

From January, home and businesses in the Australian Capital Territory have been unable to connect to gas as part of the territory’s target of reaching net zero by 2045. The New South Wales government on Friday said it had no immediate plans to match Victoria’s gas pledge.

The Victorian government will enact changes to planning provisions and schemes to ensure the changes can come into effect. It pledged to work with industry, including gas appliance manufacturers and trade unions, to support the transition.

D’Ambrosio said a new $10m residential electrification grants program would also be established. It will be available to volume home builders, developers and others to provide bulk rebates for solar panels, solar hot water and heat pumps to new homebuyers.

The Andrews government will release its gas substitution roadmap later this year that will outline further measures for electrification and energy efficiency to help Victoria reach net zero emissions.