Energy Efficiency

Getting Off Gas in Australia: Cost, Fees and Savings 2026

Getting off gas costs about $7,500 after incentives in Victoria's worked example and saves $2,230 a year with solar. Disconnection fees run $250 to $747.

Solar Cobber

Solar Cobber

Solar Industry Writer

13 min read
Getting Off Gas in Australia: Cost, Fees and Savings 2026

Getting off gas in Australia costs about $7,500 after incentives for a whole house in the Victorian Government’s November 2025 worked example, and it saves about $2,230 a year if the home has rooftop solar (about $1,900 without). The permanent gas disconnection fee, called abolishment, is roughly $250 to $270 in Victoria, NSW and South Australia and $747 in the ACT, as at November 2026.

This guide uses government figures, not installer claims, and adds our own payback working for each appliance.

Key facts

  • As at November 2026, the Victorian Government’s published worked example converts an existing solar home from dual-fuel to all-electric for $7,500 after incentives and rebates, against $14,100 to replace the same gas appliances like for like.
  • The same example cuts the annual energy bill from $3,650 to $1,420, a saving of $2,230 a year, and the Victorian Government says existing homes without solar save about $1,900 a year.
  • A permanent gas disconnection (abolishment) costs $268.40 to $270.39 excluding GST on the three Victorian networks, $257 on AGN in South Australia and $747 on Evoenergy in the ACT.
  • From 1 March 2027 a Victorian household whose gas hot water system fails must replace it with an electric alternative, and from 1 January 2027 new Victorian homes cannot connect to gas except in specific circumstances.
  • The ACT has prevented new gas network connections in most residential and commercial zones since 8 December 2023.
  • Once a home is fully disconnected, the daily gas supply charge stops, which the Victorian Government puts at up to $400 a year when cooking is the last gas appliance.
A$7,500
net cost of going all-electric, Victorian Government worked example
After incentives, existing solar home
A$2,230
annual bill saving with solar in the same example
A$1,900 without solar
A$270
AusNet permanent gas disconnection fee, ex GST
Evoenergy in the ACT: A$747
1 Mar 2027
Victorian gas hot water must be replaced with electric at end of life

Source: Victorian Government (DEECA) fact sheets and pages, updated 2025 and 2026; Evoenergy gas connection page, checked November 2026.

How much does it cost to get off gas?

For an average existing Victorian home, going fully electric costs about $15,500 before incentives and $7,500 after, according to the Victorian Government. That covers a heat pump hot water system, a multi-split heating and cooling system, an induction cooktop and $500 to cap and abolish the gas connection.

The table shows the government’s worked example for an existing home with solar, updated November 2025 and quoted in 2026 dollars. It excludes site-specific costs such as a switchboard upgrade or duct changes, and “after incentives” assumes the household qualifies for Solar Homes rebates, Victorian Energy Upgrades discounts and Small-scale Technology Certificates (STCs).

Item Replace gas with gas Electric, before incentives Electric, after incentives Annual bill saving
Heating and cooling $10,200 $8,500 $2,900 $1,140
Hot water $2,000 $4,200 $1,900 $400
Cooktop $1,900 (includes fixed charge) $2,300 $2,200 $360 (includes fixed charge)
Gas capping and abolishment n/a $500 $500 n/a
Extra solar use n/a n/a n/a $330
Total $14,100 $15,500 $7,500 $2,230

Source: Victorian Government, “Embracing electricity to cut your bills at home” fact sheet, updated November 2025.

The state’s own bill figures for that home are $910 for electricity and $2,740 for gas (a $3,650 annual bill) before, and $1,420 after.

Appliance and install cost of going electric, Victorian Government worked exampleExisting home with solar, 2026 dollars, excludes site-specific upgrades
  • Before incentives
  • After incentives

Source: Victorian Government (DEECA), Embracing electricity to cut your bills at home, updated November 2025.

View the data as a table
Before incentivesAfter incentives
Heat and coolA$8,500A$2,900
Hot waterA$4,200A$1,900
CooktopA$2,300A$2,200
Gas cappingA$500A$500

Heating and cooling carries almost all of the incentive in this example, falling from $8,500 to $2,900, while the cooktop barely moves from $2,300 to $2,200.

How much does it save a year?

A Victorian existing home saves about $1,900 a year by going all-electric without solar and about $2,230 with solar, according to the Victorian Government’s household page (last updated 5 August 2026). The state’s older disconnection fact sheet, updated September 2026, still quotes $1,190 for a dual-fuel conversion, so official figures vary between pages and depend on the home modelled.

Annual bill saving from replacing each gas appliance, Victorian Government worked exampleExisting home with solar, 2026 dollars; cooktop figure includes the gas fixed charge

Source: Victorian Government (DEECA), Embracing electricity to cut your bills at home, updated November 2025.

View the data as a table
Saving per year
Heating and coolingA$1,140
Hot waterA$400
CooktopA$360
Extra solar useA$330

Replacing gas heating saves $1,140 a year, almost half of the $2,230 total, so ducted gas heating is the appliance that matters most.

The Victorian Government says the cooktop saving only lands in full when it is your last gas appliance, because disconnecting stops the supply charge, which it puts at up to $400 a year.

Does it pay without solar?

Yes, but by less. Without the $330 of extra solar use, the same example saves about $1,900 a year, and solar still helps because a heat pump or reverse-cycle air conditioner can run on daytime exports. See our solar hot water versus heat pump guide for running costs and our solar savings guide if you lack panels.

What is the payback on each step?

Heating and cooling pays back fastest, in about 2.5 years, and a cooktop slowest, in about 6 years, on the government’s net costs. This is a Solar Cobber calculation: net cost after incentives divided by annual bill saving, using the table above.

Step Net cost after incentives Annual saving Payback (years)
Heating and cooling $2,900 $1,140 2.5
Hot water (heat pump) $1,900 $400 4.8
Cooktop (induction) $2,200 $360 6.1
Whole house, with solar $7,500 $2,230 3.4
Whole house, without solar $7,500 $1,900 3.9

Working: $2,900 / $1,140 = 2.5; $1,900 / $400 = 4.75; $2,200 / $360 = 6.1; $7,500 / $2,230 = 3.4; $7,500 / $1,900 = 3.9. The no-solar row assumes the same net cost, since the government does not publish a separate no-solar cost.

Simple payback of each electrification step, yearsNet cost after incentives divided by annual bill saving, Victorian Government worked example

Source: Solar Cobber calculation from Victorian Government (DEECA) worked example, November 2025. Assumes every incentive is claimed; a household that misses a rebate pays more.

View the data as a table
Payback years
Heating and cooling2.5 years
Whole house, with solar3.4 years
Whole house, no solar3.9 years
Hot water (heat pump)4.8 years
Cooktop (induction)6.1 years

Hot water has a second, quieter advantage: at end of life, the net $1,900 for a heat pump is slightly below the $2,000 the government assigns to a like-for-like gas replacement. That is a reason to treat a failed gas hot water system as the moment to switch.

What does it cost to disconnect gas?

A permanent disconnection costs about $250 to $270 excluding GST in Victoria, NSW and South Australia and $747 in the ACT, but it is not the whole bill. Your retailer may add a handling fee and meter-read charges, and the charge appears on your next bill.

Abolishment means the service pipe is cut and capped and the meter removed, and it is the permanent option. A temporary disconnection only locks or plugs the meter so the connection can be used again. The Victorian Government says the daily supply charge stops once a home is disconnected, so ask your retailer to confirm in writing which charges end.

The table shows the network-level fees, as at November 2026, from each distributor or government source. The Victorian prices are regulated by the Australian Energy Regulator (AER) from 1 July 2023.

Network State Permanent disconnection (abolishment) Temporary disconnection Source and date
AusNet Victoria $270.39 $78.66 Victorian Government fact sheet, updated September 2026
MultiNet Victoria $268.40 $70.40 Victorian Government fact sheet, updated September 2026
AGN Victoria $268.40 $97.90 Victorian Government fact sheet, updated September 2026
AGN South Australia $257 (meter removal $93 plus service disconnection $164) $93 AGN tariffs from 1 July 2026
Jemena NSW $250 standard, $1,200.60 where building works are planned Not found Jemena submission to the AEMC, January 2026
Evoenergy ACT $747 $100 Evoenergy gas connection page, checked November 2026

All amounts exclude GST. We could not confirm Western Australia, Tasmanian or Northern Territory fees. AGN’s own Victorian schedule from 1 July 2026 lists $244 excluding GST for meter removal plus service pipe removal, which is lower than the government sheet. AGN’s Queensland schedule lists $92 for meter removal and $857 to cut off the service in the street, with service pipe removal quoted individually.

Permanent gas disconnection (abolishment) fee by network, ex GST, 2026Victorian figures are regulated prices from 1 July 2023; others are 2026 schedules

Source: Victorian Government fact sheet (September 2026); AGN tariffs 1 July 2026; Jemena submission to the AEMC (January 2026); Evoenergy, November 2026.

View the data as a table
Abolishment fee
Jemena NSW (building works)A$1,201
Evoenergy ACTA$747
AusNet VicA$270
MultiNet VicA$268
AGN VicA$268
AGN SAA$257
Jemena NSW (standard)A$250

Canberra is the outlier at $747, almost three times the other networks, and a NSW home pays nearly five times more if gas work is part of a rebuild.

Why NSW has two prices

Jemena’s January 2026 submission says its AER-approved plan has two standard residential abolishment charges from 1 July 2026: $250 for a household simply leaving the network and $1,200.60 for a connection with current or planned construction works. The distributor was arguing against the lower figure, so confirm which applies in writing before you book.

In April 2026 the Australian Energy Market Commission (AEMC) made a rule requiring cost-reflective upfront abolishment fees, phased in from each network’s next access arrangement period, so the fees above stand until then.

In the ACT, abolishment is mandatory if demolition works will take place, and only the homeowner or their representative can request it, according to the ACT Government. The ACT page quotes about $760, an older figure than Evoenergy’s current $747.

Which states ban new gas connections?

Victoria and the ACT are the two jurisdictions we confirmed with restrictions on new gas connections, and neither forces an existing home to disconnect. As at November 2026:

Jurisdiction New connections Existing homes
Victoria New homes needing a planning permit have been all-electric since 1 January 2024; from 1 January 2027 new residential and most commercial buildings, including knock-down rebuilds, cannot connect except in specific circumstances Can stay connected; gas heating and cooktops can be kept and repaired; from 1 March 2027 a gas hot water system that fails or is replaced for any reason must be replaced with an electric one
ACT Prevented in residential, commercial and community land-use zones since 8 December 2023 Can keep using an existing connection; the gas network may begin to close from the mid-2030s, with a 2045 target

Source: Victorian Government, existing residential buildings, updated 9 October 2026, and ACT Government, preventing new gas network connections.

A Victorian state election is set for 28 November 2026, so recheck policy afterwards. We did not research the statutes of NSW, Queensland, South Australia, Western Australia, Tasmania or the Northern Territory, so check your state regulator before assuming a connection is available or restricted.

What rebates are there for replacing gas?

Victoria has the largest rebates, with up to $1,560 for hot water from Victorian Energy Upgrades (up to $560) and the Solar Homes program (up to $1,000), per the page updated 9 October 2026. Another government page, updated 24 July 2026, says up to $1,630, or $2,030 for locally made systems, so check the amount at the time of quote.

  • Heating: up to $1,610 when replacing a gas heater with a reverse-cycle air conditioner, or up to $5,530 for a gas ducted heater, with savings of up to $460 and $1,410 a year respectively.
  • Cooktop: up to $140 for an induction cooktop.
  • NSW: up to $330 when a heat pump replaces gas hot water. See our heat pump rebate guide.
  • ACT: a 3 per cent Sustainable Household Scheme loan. The ACT Government models households as $8,900 better off over 15 years even after paying for new appliances. See our ACT rebate guide.

Federal STCs apply to heat pump hot water in every state, but their value falls on 1 January 2027, when the deeming period drops from 5 years to 4. Find your state in our Victoria and NSW rebate guides.

Watch the video: how to electrify hot water

Ausgrid’s channel explains how a heat pump replaces a gas or electric hot water system.

How to electrify Your Hot Water with a Heat Pump. Video: AusgridTV on YouTube. Watch on YouTube

Will you need a switchboard or phase upgrade?

Possibly. Moving heating, hot water and cooking onto electricity adds load, and the government’s figures exclude switchboard upgrades. Our single versus three phase guide explains when it matters, and an installer from our directory can assess your switchboard. Solar adds about $330 a year in the example, and our peak and off-peak guide and heat pump price guide cover timing and unit costs.

What to check before you disconnect

  1. Ask your retailer for the written abolishment cost, including its handling fee.
  2. Choose abolishment, not temporary disconnection, if you will not return to gas.
  3. Check the switchboard, phase and meter capacity for heat pump, induction and air conditioner loads.
  4. Confirm each rebate is claimed before purchase, as most are applied at the point of sale.
  5. Keep gas until the last appliance is replaced, because the supply charge continues while any appliance runs.
  6. Get at least three quotes, as in our guide to comparing quotes.

FAQ

How much does it cost to get off gas in Australia?

About $7,500 after incentives for a whole house in the Victorian Government’s worked example, or $15,500 before incentives. Your cost depends on home size, the ducted heating you replace and which rebates you qualify for.

How much is the gas disconnection fee?

Permanent disconnection (abolishment) is $268.40 to $270.39 in Victoria, $257 on AGN in South Australia, about $250 in NSW and $747 in the ACT, all excluding GST. Your retailer may add a handling fee.

What is the difference between disconnection and abolishment?

Disconnection temporarily locks or plugs the meter so supply can be reconnected, while abolishment permanently cuts and caps the service pipe and removes the meter. The Victorian Government notes that households choose which service they want.

Does getting off gas save money?

Yes in the Victorian Government’s modelling, about $1,900 a year without solar and about $2,230 a year with solar. The figure is state-specific and modelled, so your gas use and plan affect it.

Is it cheaper to run a heat pump or gas hot water?

A heat pump is cheaper in the government’s figures, saving up to $400 a year when replacing gas hot water in Victoria.

Is gas being banned in Australia?

Not for existing homes. Victoria and the ACT restrict new connections, and from 1 March 2027 Victoria requires an electric replacement when a gas hot water system fails.

Can I keep my gas cooktop?

Yes. Victoria states there is no requirement to replace existing gas heating or cooktops. But the supply charge continues until the last appliance goes.

Do I need solar to go all-electric?

No. The Victorian Government still models a saving of about $1,900 a year without solar. Solar raises the saving by roughly $330 a year in its example.

Sources

About this guide

Written by the Solar Cobber editorial team from independent desk research checked in November 2026. We did not contact the organisations named, and we have not tested any product or obtained any quotes. Solar Cobber is a free directory that may earn referral or advertising fees from installers, but commercial relationships never affect our content. This is general information, not financial advice. To report a correction, use /contact.

Filed under Energy Efficiency

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