Gas connections for all new housing and sub-divisions will be banned in Victoria from January 1 next year.

Savings from not requiring gas pipes, appliances and gas supply infrastructure help to offset the costs of highly efficient electric appliances.

The government’s announcement of $10 million for Residential Electrification Grants should help with some of these costs while the industry adjusts.

Some components of efficient electric products, such as hot water storage tanks, are made locally.

While the benefits are clear for new homes, the changes may increase gas costs and energy poverty for residents of existing housing who don’t shift to efficient electric solutions.

Consumer education and modifications to appliances and buildings may be needed to increase acceptance and avoid backlash.