While the time frame remains up in the air, the shift away from gas as a domestic energy source is inexorable. If you still have a gas appliance, sooner or later you’re going to have to make the switch to energy.
That may sound like an annoying prospect, perhaps even daunting for those who’ve found gas the best option for cooking. But there’s likely to be a silver lining to that cloud when it inevitably rolls in. Chances are the switch to gas will save you thousands of dollars.
Evidence is mounting that a transition to electric appliances will lead to significant savings on your energy bill. That’s the message coming from RenewEconomy, a green energy transition analyst.
But before you grab your toolbox and rush off to disconnect your gas heater or stove, read on. RenewEconomy is not suggesting that you’ll get an immediate financial benefit from switching to electricity. Rather, it suggests that you’ll come out ahead in the long term.
“Efficient electric appliances are cheaper than gas appliances when considering the full costs over their lifespan,” it says. The claim is backed up with data from the Institute for Energy Economics and Financial Analysis (IEEFA). That data indicates an average household would save about $1200 each year if it replaced its gas appliances with efficient electric alternatives at the end of their life.
If gas is on the way out, why are new gas appliances still being sold?
This is a very good question, and RenewEconomy believes that they should not be. It says “new gas appliances lock in an unnecessary $1.2 billion in lifetime energy costs for households across the country”.
Oddly, Victoria is the state that accounts by far for the most of this cost – $900 million. Odd because RenewEconomy is the state most likely to face gas shortages first in Australia. It says the Australian Energy Market Operator (AEMO) expects gas supply to reduce faster than gas demand in southern states. This would create a supply gap from 2027. That’s only three years away.
Gas infrastructure supplier Australian Gas Networks (AGN) has a different view on pricing comparisons. It says there is “no simple answer” to the gas versus electricity debate.
“The cheapest upfront appliances are usually basic electric ones, but their higher running costs mean they could cost you a lot more over time,” says AGN. “Natural gas appliances can have lower running costs for all but the smallest households. In most areas natural gas gets cheaper as you use more, which suits medium and larger households.”
So what’s best for your home?
Planning your switch from gas to electric
For many Victorians, at least, the decision has been taken out of their hands. As of 1 January this year, the state has banned connections to reticulated natural gas when constructing a new house or apartment development. The new law also includes a mandatory condition ensuring no gas connections can be constructed after the development is completed.
As for planning the switch away from gas, there’s no urgent action required of consumers. Even RenewEconomy suggests only replacing your gas appliance once its lifespan is up. At that point, the recommendation is to choose an electric appliance, even if gas appliances remain on the market. When you no longer have any gas appliances, remember to contact your supplier and close your account.
In the US, ‘out of gas’ is a euphemism for feeling completely exhausted. In Australia, it appears likely that will be literally out of gas before long, so plan accordingly.
Do you have gas appliances in your home? Are you ready to make the move to electric? Let us know via the comments section below.
Also read: Record low energy prices a boon for savvy customers
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We deliberately have a gas cooktop and shower because of interruptions to electricity…..at least you can cook a meal, have a cuppa and a hot shower!
Exactly, and power outages seem to become more common place now compared to some years ago. I wouldn’t switch back to electric.
I agree with Ally and Frankly. But I will have an issue with my gas hot water, even with roof solar, as it has electric ignition. There is no pilot light that can be lit with a match.
What you need are Solar Panels & a Battery Mine a 13kWh Tesla and I haven’t notice a power failure since they were installed. even having received many messages from Powercor that there was a power outage in my street
Understand that Denis, but for me that involves additional investment in a battery. I have not had an electricity bill since installing solar panels in August 2019 and so far, have only had one outage of a few hours in that time. Hence my decision to not worry about getting a battery.
Should this mad march towards reliance on “green” energy continue and power availability becomes a lottery, then a battery would be needed to rectify that situation.
This post only compares Reticulated Natural Gas & never mentions LPG Bottled Gas comparisons or replacement costs. I have had an LPG gas cooktop for many years with great results. Recently, I had solar panels installed resulting in massive savings for electricity. I am now seriously considering a change back to power for my cooktop.
Had a gas appliances for a long time, until decided to replace the tired old kitchen.
When all electric and installed an induction cooktop. The induction provides similar cooking to gas without wasted heat which heats parts of pots and pans that don’t need to be, eg handles. The induction stove only heats the base and there is not the gases and particles in the air from burning gas, which can cause health problem, eg asthma.
If there is a power failure there is still the backyard BBQ.
The supposed issues with gas are just as big a furphy as Climate Change. Like coal, our gas will still be exported and used for the same purposes as we do so again we are the people who would be disadvantaged and it begs the question WHY?? It’s going to be interesting years down the track when our coal fired power stations are gone and we are left with only Snowy Mountain power station on the mainland and ridiculous wind farms and solar farms. There are going to be more blackouts than ever.
I use bottled gas for my stovetop and won’t be changing, Normal Electric stoves are too hot in sub-tropic summers and I don’t want an induction stove. Nobody mentions the strong emf from these induction appliancs which have a strong and wide field which you can’t escape over a cooktop. Although they say emf doesn’t affect you, authorities do acknowledge that some people could be more sensitive. I’ve had a lot of emf contact during my working years and don’t wish to be subject to more unnecessarily.
As Gra asks “Why”? It is political construct and domestic gas is not contributing to any changes on climate. But we have to put up with the idiocy.
Having changed the gas heater to a split system for all year heating and cooling, the costs from that appear to be less expensive to run but at >$3.4K it was an expensive change. But the hot summer relief was appreciated.
When it looked as if there would be significant changes in the occupancy of the house, it was disconnected from the reticulated gas and converted to two small gas bottles. Unfortunately it was not possible to swap jets in the stove and a new one was required. The immediate saving is that I am not faced with a ~$40/mnth service fee. About 8 months ago the cost of a refill jumped from $20 to $25! However, that price has dropped back to $20. After 4 years, the additional cost of the new stove is very close to breaking even. I am using less than $100 of gas per year as I do not cook a lot.
An important consideration to remember if going to an induction bench top is are your sauce pans suitable? If ceramic or aluminium, they will have to be replaced with iron utensils.
Gas will continue to be available for existing connections for decades to come and who knows but some intelligence may appear and the ban on gas may be overturned. So don’t rush in unless it is forced on you.
Anything the Federal Government clown minister, Chris Bowen, Albasnooze and Lilly from the Victorian State Government says about gas appliances being abandoned and replaced by electrical appliances, the three of them are out with the fairies. Anything Bowen says, just ignore it. He gets his information off the back of the Corn Flakes box, and then when he is caught out, he dramatically changes his views.
We have gas stove top cooking, a gas hot water system with a solar panel, and we heat our place in winter with a gas ducted appliance. As two 82 year old pensioiners, where in god’s name are we going to get the finances to change over to electricity. Your dreaming Boen and Lilly.
The writer is incorrect when stating that new gas connections are banned.If you wish to build a new home and gas is available in the street , then as long as you only need a building permit you can have a gas connection. Forcing people to switch to electricity when the state still relies heavily on coal fired power plants is actually increasing our emissions.
There was also no mention of Hydrogen which will play a part in the future energy mix.