Nobody has to rip out a working gas system. What changes is what can go back in when one dies.
Last checked
From 1 March 2027, existing Victorian homes must replace a gas hot water system with an efficient
electric alternative, like a heat pump, once it reaches end of life. For an owner-occupied home that means when
the gas unit breaks and cannot be repaired. Until then, it can keep running and be repaired.
Who it applies to
How Victoria's 2027 gas hot water rule applies by type of home
Your situation
What the rule means
Owner-occupied existing home
When the gas hot water unit breaks and cannot be repaired, the replacement must be electric.
Rental home
A hot water appliance that breaks and can't be repaired is replaced with a heat pump water heater.
Gas cooktop or heating
For owner-occupiers there's no requirement to switch these.
The Victorian Government also says there are a range of exemptions for situations where
electrifying is impractical or costly. It hasn't published those as a simple list on its summary page, so if
your home is unusual (no outdoor space for a heat pump, say), ask your plumber to check the regulations before
you assume the rule does or doesn't apply.
Why it's worth planning before the tank fails
A like-for-like gas swap is quick. A switch to a heat pump usually isn't: it needs somewhere outside with airflow,
its own electrical circuit and sometimes an electrician. That's hard to organise on a cold morning with no hot
water. If your gas system is getting old, getting a heat pump quote now gives you time to sort out placement and
the switchboard. What the switch involves.
What helps with the cost
A Victorian Energy Upgrades discount, indicatively $560 when a heat pump replaces an
inefficient gas heater. It has no income test.
The Solar Victoria rebate of up to $1,000, if you meet its owner-occupier, income and property
tests.
Lower bills afterwards: Solar Victoria puts the saving from switching gas to efficient electric hot water at
around $400 a year.
The rebate and discount have their own rules and can change, so check them when you get quotes.
Victoria's hot water rebates has the details, and the
calculator shows what a heat pump might cost you once they come off.
If you rent
Hot water that stops working is still an urgent repair, and your rental provider still has to fix it straight
away. The 2027 rule changes what goes in if the old unit can't be fixed.
Urgent repair rules for renters.