One of the biggest questions about going electric is simple: will it actually cost me less? The honest answer is that for most Melbourne homes — especially with efficient appliances and solar — total energy costs come down, though the electricity bill itself rises while the gas bill disappears. The key is to look at total energy spend, not one bill in isolation. This guide explains where the savings come from and shows indicative numbers. Figures are indicative only and vary widely by home.
Where the Savings Come From
Electrifying lowers total energy cost through three levers. First, removing the gas daily supply charge — a fixed cost you pay just for the connection. Second, running efficient heat pumps for heating, cooling and hot water, which use far less energy than gas or electric elements for the same output. Third, solar — powering daytime electric loads with energy you generate rather than buy. Each lever helps on its own; together, for an efficient all-electric home with solar, they can substantially reduce the energy bill, as the chart above illustrates.
The Gas Supply Charge
This is the saving people overlook. The gas daily supply charge is billed simply for having a gas connection — regardless of usage — and adds up to roughly $300 or more a year. If your home uses gas only for heating (and perhaps hot water), the supply charge can be a large fraction of the gas bill. Once you electrify your last gas appliance and disconnect the gas, that charge vanishes entirely. It is a guaranteed, usage-independent saving that improves the all-in comparison. See our disconnecting gas guide.
Running Costs Compared
Efficient electric appliances change the running-cost equation. A reverse cycle heat pump delivers 3 to 5 units of heating or cooling per unit of electricity, and heat-pump hot water is similarly efficient — both far better than burning gas. So while electricity costs more per unit than gas, you use much less of it for the same comfort and hot water. Net of the removed supply charge, the running-cost comparison for an efficient all-electric home is favourable for most Melbourne households. See our reverse cycle running costs guide.
The Solar Multiplier
Solar is where an electrified home gets genuinely cheap to run. Once heating, cooling and hot water are electric, you can power much of that load with solar during the day rather than buying it — cutting or even eliminating the running cost of daytime conditioning and hot water. The trick is to shift usage to daylight: schedule the hot water and pre-condition the home during the day. For an efficient, solar-equipped, all-electric home, energy bills can be very low — the bottom bar in the chart above.
Indicative Numbers
The chart above shows indicative whole-home annual energy cost: a typical gas-plus-electricity home, an efficient all-electric home, and an all-electric home with solar — each progressively lower. These are illustrative ranges only; your actual cost depends heavily on your home, how much you use, your tariff, and your solar. They are shown to illustrate the direction and the levers, not as a quote. The consistent pattern, though, is that efficient electrification plus solar reduces total energy cost.
Capturing the Savings
- Use efficient heat pumps for heating/cooling and hot water — the efficiency is where the saving starts.
- Disconnect gas once your last gas appliance is electric, to drop the supply charge.
- Add or use solar and shift daytime loads (hot water, pre-conditioning) to daylight.
- Use the rebates to lower the upfront cost of the upgrades.
- Zone and set sensibly — good habits keep running costs down.
FreshDuct can plan an electrification path that captures these savings. Call 0431 918 137.