Going All-Electric: What Home Buyers Need to Know

22nd September 2025

Finance & Budgeting Pre-Construction Design & Trends First Home Buyer Smart Home & Tech

Learn what “going all-electric” really means for new home buyers in Australia. Colin and Darren unpack the new Victorian regulations, what changes for your build, and how to plan for an energy-efficient future.

Going All-Electric: What Home Buyers Need to Know

With new rules rolling out across Victoria and other parts of Australia, “going all-electric” has become one of the biggest talking points for home buyers and builders. But what does it really mean? And how will it affect you if you’re building a new home?

In this episode of the Home Building Hub Podcast, hosts Colin Bischof and Darren Brennan break down what “all-electric” homes are, why they’re becoming mandatory in some areas, and what you should consider when planning your build.

Why Are Homes Going All-Electric?

The move towards all-electric homes is being driven by both government targets and environmental goals.

Here’s the quick rundown:

• Victoria now requires new homes with planning permits submitted after 1 July 2024 to be all-electric.

• New South Wales has seen similar requirements in some councils since around 2022–2023.

• Queensland and Western Australia currently have no such mandates.

In other words, the shift depends on where you’re building – but it’s coming, one way or another.

What’s Driving the Change?

The push for all-electric homes comes down to four main reasons:

1. Climate and Emissions Targets

Australia is working towards net zero by 2050, with a target to reduce emissions by 70% by 2035. Phasing out fossil gas in homes helps achieve those goals.

2. Health Benefits

Studies have shown that indoor gas appliances – especially cooktops and heaters – can emit nitrogen dioxide and other pollutants. This increases risks of respiratory issues and asthma, especially in children.

3. Rising Costs and Supply Concerns

Gas prices continue to climb, and maintaining gas infrastructure adds extra costs. Going electric reduces dependency on an energy source that won’t last forever.

4. Long-Term Savings

While installing all-electric systems can cost more upfront, pairing them with solar panels and batteries can dramatically reduce your power bills. Many homeowners are now producing more energy than they consume.

How to Check If Your Estate Allows Gas

Not all estates still have gas infrastructure in place. Before buying your block:

• Speak to your land developer – ask if gas is connected to the street.

• Review engineering plans – they’ll show if gas lines are available.

• Check your planning permit – some planning approvals automatically exclude gas connections.

Even if gas is present, your planning permit might still prevent you from using it.

What Actually Changes in an All-Electric Home?

Let’s look at what going all-electric really means in practice. There are four key areas that change:

1. Heating and Cooling

Traditionally, homes included gas ducted heating. To replace this, you have options:

• Reverse cycle ducted system – provides both heating and cooling through one unit (more expensive but efficient).

• Multiple split systems – smaller, wall-mounted units throughout the home.

• Electric wall panel heaters – lower-cost option, ideal for entry-level homes.

Tip: If you’re building an investment property, make sure cooling is included to meet rental compliance standards.

2. Cooking

Gas cooktops will be replaced by either:

• Ceramic electric cooktops – cheaper but get very hot.

• Induction cooktops – more energy-efficient, faster, and safer, but may require new pots and pans (check if a magnet sticks to your cookware).

3. Hot Water

Gas or gas-boosted solar systems will be replaced by heat pump hot water systems.

• These are efficient and environmentally friendly.

• They come in different sizes (215L to 300L) depending on your builder.

• They cost more upfront but save on running costs long term.

4. Electrical Supply

With everything now running on electricity, you’ll likely need to upgrade your home to three-phase power.

• Not all areas have three-phase available, so check with your builder.

• If unavailable, a high output single-phase option might be used instead.

What Does This Mean for Your Builder Quote?

Not all “all-electric” homes are the same – and not all builder quotes include the same things.

Here’s what you need to know:

• Some builders include all-electric as standard – no extra cost, but you’ll want to check what level of inclusion (e.g. ceramic vs induction cooktop).

• Others still offer gas as standard, with upgrades available for an electric package.

• Some split inclusions across standard and promotional upgrades – for example, including three-phase power as standard but charging extra for the reverse cycle system.

Important: Two similar quotes might look the same on price but differ significantly in inclusions. Always check the fine print.

What’s the Cost Difference?

Prices vary depending on the inclusions, but here’s a rough guide:

• Entry-level electric upgrades (ceramic cooktop, panel heaters): $5,000–$10,000

• Premium setups (induction cooktop, reverse cycle ducted system): $10,000–$25,000+

Larger homes needing multiple heating/cooling units will sit at the higher end of that range.

Can You Still Have Gas?

Technically yes – through bottled gas for cooking if your estate doesn’t have mains gas. However, this won’t change your “all-electric” compliance for most building codes since bottled gas isn’t a permanent supply.

Key Takeaways

• Victoria now requires all-electric homes for permits after July 2024.

• NSW has similar council-led restrictions, while QLD and WA remain more flexible.

• Going electric supports emissions goals, reduces long-term costs, and improves indoor air quality.

• Major changes include heating/cooling systems, hot water, cooktops, and power upgrades.

• Always check what’s included in your builder’s “all-electric” package before signing.

Glossary of Terms

All-Electric Home: A home that runs entirely on electricity with no connection to gas. Heat Pump: A system that extracts heat from the air to warm water efficiently. Three-Phase Power: A higher-capacity electrical system needed for heavy appliances. Induction Cooktop: An energy-efficient electric cooktop that heats pots directly using magnetic fields. Reverse Cycle System: Air conditioning that provides both heating and cooling in one unit.

FAQs

1. Do I need solar panels if my home is all-electric? Not necessarily, but pairing solar with all-electric appliances will save you significant money on bills.

2. Can I retrofit an existing home to go all-electric? Yes, but costs will depend on replacing gas appliances and upgrading your electrical system.

3. Are all builders offering all-electric homes now? Most are transitioning, but inclusions and costs vary widely – always compare quotes carefully.

Listen to the Full Episode

🎧 Watch or listen to the full discussion here: Going All-Electric: What Home Buyers Need to Know

About the Home Building Hub Podcast

The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process - completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips. Explore more episodes at www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer

This article was generated by AI based on a transcript of our podcast episode and may contain inaccuracies or omissions. Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.