Stop Gas and Save: Climate Tip


New analysis from the Climate Council says Australian households could save up to $1,900 a year by switching from gas to electric appliances.

There are many good reasons to quit gasoline, such as reducing household greenhouse gas emissions, other health risks and blaming it on Putin. Another biggie is saving money. The wholesale price of gas has nearly tripled since last year, with the vast majority of the gas we produce here in Australia being shipped overseas and our prices tied to an international market.

A new report from the Climate Council says homeowners in Australian capital cities could save up to $1,900 a year on their electricity bills by replacing gas-fired heaters, cookers and hot water with their electric counterparts – and even more for households equipped with solar energy systems.

“In the midst of a national cost of living crisis, removing gas from homes is a simple and smart way for Australians to save hundreds, if not thousands, of dollars a year, while reaping health benefits. and reducing greenhouse gas emissions,” said Climate Council senior researcher and report lead author Dr. Carl Tidemann.

Potential savings in each capital

Although the mileage of each household varies according to the energy consumption profile, according to the organization, households switching to electricity (excluding transport) in capital cities can achieve annual savings of up to:

  • Hobart: $1,899
  • Canberra: $1,876
  • Brisbane: $1,424
  • Adelaide: $1,457
  • Melbourne: $1,207
  • Sydney: $924
  • Perth: $803

Darwin was not included in the list because the publicly available gas price date was not available.

The above savings include the use of solar hot water with electric backup. But the report says Australian households with solar power systems, properly sized and used wisely, could save up to $800 more on their bills each year. It is unclear whether this may involve the use of an electric water heater combined with a device such as a PV inverter or a heat pump hot water system; or simply based on a solar water heater also in place.

The Climate Council has also launched a savings calculator here, showing how much can be saved by switching from gas to electric appliances in different scenarios.

Find the money to change

Of course, going from gas to all-electric is going to mean spending money to save money. But items like induction cooktops are already pretty cheap. For more expensive items, the Climate Council is calling on governments to provide low- or no-interest loans to help cover the initial cost of purchasing appliances such as reverse-cycle air conditioners and water heaters.

This needs to be approached with caution – depending on which finance provider a government might partner with, the finance costs could end up being “rolled in” to the cost of the device, thus extending the payback period. This is a common scenario with so-called “0% Interest” (Buy Now, Pay Later) deals for solar power systems.

Other issues the organization would like to see addressed:

“In addition to helping families access electrical appliances, governments should also prevent gas companies from charging exorbitant disconnection fees and end the absurd practice of forcing new homes to be connected to gas networks. “, said Dr. Kate Charlesworth.

Disconnect fees can range from under $100 to over $1,000. On the forced login front, Victoria has taken the lead; end forced gas connections in new homes. The Victoria government will also phase out all incentives for residential gas products next year.

The Climate Council’s report, Switch And Save: How Gas Is Costing Households can be downloaded here.


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