Gas As An Energy Source Is Coming To An End
The era of gas is coming to an end. With renewable energy becoming more affordable, many Australian households are shifting away from fossil fuels. Despite this, about 5 million Australian homes still rely on gas for heating and cooking. While gas connections may have been a good idea in the past, the current energy market shows that moving away from gas can reduce energy bills and emissions. (With hot water an 80% reduction in heating costs). Although it requires some planning and isn’t always a DIY job, electrifying your home is the inevitable way forward. The sooner you start, the better.
Why Make the Change?
Switching to electricity is a smart financial move. According to Rob McLeod, a policy and advocacy manager at Renew, a sustainability not-for-profit, electrifying your home can significantly lower your energy bills. In a typical insulated home in Melbourne, going off gas can reduce annual energy bills by several hundred dollars.
A 2023 report by Grattan Institute supports this view. Research conducted by Alison Reeve and her team found that, after considering the disconnection and abolishment fees (which vary by state), switching to electricity is the right financial decision in every Australian capital city except Perth.
Why Now?
While household gas usage accounts for only a small fraction of national carbon emissions, it’s crucial to act with net-zero targets fast approaching. Millions of gas disconnections will be needed in the coming decades. To achieve national 2050 targets, Victoria, Australia’s largest consumer of household gas, would need to disconnect over 200 homes from the gas network daily for the next 26 years.
The number of homes using gas will decrease in the coming years, and it pays to get ahead of the curve. As more homes disconnect, those remaining will bear the cost of maintaining the gas network. Therefore, acting now can prevent higher future expenses.
Transitioning away from gas can bring both financial and environmental benefits. In the next post, we’ll explore how to make this transition, focusing on practical steps to replace gas appliances and planning for a gas-free future.