Gas to Electric in Victoria: What the March 2027 Rules Really Mean for Homeowners

By Greentastic Pty Ltd – Energy-Efficient Solutions You Can Trust

There’s been a lot of confusion, headlines, and mixed messaging around Victoria’s move away from gas. Many homeowners are asking the same questions:

• Is gas being banned in Victoria?
• Do I have to replace my gas heater or cooktop?
• What actually changes from March 2027?

At Greentastic Pty Ltd, we work closely with Victorian households every day, helping them navigate government policies, rebates, and energy-efficient upgrades. In this article, we cut through the noise and explain what the March 2027 gas-to-electric rules really mean for homeowners, based on confirmed government publications as of January 2026.

Why Victoria Is Moving Toward Electric Homes

Victoria’s energy policy is focused on:

• Reducing reliance on fossil fuels
• Lowering household energy bills over time
• Improving energy efficiency and safety
• Supporting modern, all-electric homes

Electric technologies like heat pumps and reverse cycle air conditioning are far more efficient than traditional gas appliances. The government’s approach is targeted and staged, not a sudden or blanket ban.

🔸 What Is Happening: Confirmed Government Policy

✅ Gas Hot Water Systems: Mandatory Change from 1 March 2027

From 1 March 2027, if an existing gas hot water system in a Victorian home:

• Breaks down and
• Cannot be economically repaired

➡️ It must be replaced with an efficient electric alternative, such as a heat pump hot water system.

This requirement is part of:

• Victoria’s Building Electrification Regulations
• The Gas Substitution Roadmap

The goal is simple: gas hot water systems are one of the largest and least efficient gas users in homes, and electric heat pumps deliver the same hot water using far less energy.

✔ This rule applies to end-of-life replacement only
✔ You are not required to remove a working gas system

🔸 What Is Not Required: No Blanket Gas Ban

❌ No Mandatory Replacement of All Gas Appliances

There is no longer a rule that forces all broken gas appliances to be replaced with electric alternatives in existing owner-occupied homes.

This means:

• Gas space heaters can still be repaired or replaced with gas
• Gas cooktops and ovens can still be repaired or replaced with gas
• Homeowners can choose when and how they transition

➡️ Electrification is strongly encouraged, but not mandatory for these appliances in existing homes.

This clarification is important — earlier proposals caused understandable concern, but the final policy is far more targeted.

🔸 New Builds and Rental Properties: Different Rules Apply

✔ New Homes from 1 January 2027

All new residential homes and many new commercial buildings built in Victoria from 1 January 2027 must be:

• All electric
• No new gas connections

This ensures new buildings are future-ready from day one.

✔ Rental Properties from 1 March 2027

Rental homes will be subject to minimum energy efficiency standards, including:

• Replacement of end-of-life heating or hot water systems with efficient electric options
• Improved insulation requirements
• Energy-efficient heating and cooling standards

These rules aim to protect renters from high energy bills and poor-quality heating.

📌 Summary: Current Rule Status (January 2026)

Final Clarification: What Changed?

Earlier proposals suggested a broad electrification requirement that would have forced all gas appliances to be replaced with electric alternatives when they failed.

➡️ That proposal has been scaled back.

The current rules:

• Only mandate electric replacement for gas hot water systems
• Require electrification in new builds
• Introduce efficiency standards for rental properties
• Do not ban gas appliances in existing owner-occupied homes

What Homeowners Should Do Now

Even if you’re not forced to upgrade today, many Victorians are choosing to switch early because:

• Heat pumps and reverse cycle systems are far cheaper to run
• Government rebates are available now
• Gas prices are rising, while efficient electric systems lower bills
• Upgrading early avoids emergency replacements later

At Greentastic Pty Ltd, we help homeowners:

• Understand what applies to their situation
• Access available VEU and government incentives
• Upgrade at a time that suits their budget and home

Trusted Advice, Not Pressure

Every home is different. Our role isn’t to push unnecessary upgrades — it’s to give you clear, honest advice backed by facts and government policy.

If you’re unsure how the March 2027 rules affect your home, or you’re considering a gas-to-electric upgrade, our team is here to help.

👉 Talk to Greentastic Pty Ltd — trusted experts in energy-efficient solutions for Victorian homes.

Official Victoria government policy on electrification rules (March 2027):

🔗 Energy Victoria – Electric and Efficiency Standards for Buildings
https://www.energy.vic.gov.au/households/electric-and-efficiency-standards-for-buildings