Yes. Victoria is gradually phasing out gas hot water systems in favour of efficient electric systems such as heat pumps.
From 1 March 2027, when an existing gas hot water system in a Victorian home reaches the end of its life and cannot be repaired, it will generally need to be replaced with an electric hot water system.
Can I Keep My Existing Gas Hot Water System?
Yes. There is no requirement for homeowners to immediately remove a working gas hot water system.
If your existing system is working properly, you can continue using it. If it breaks down, it may still be possible to repair it. The new requirement applies when the system reaches the end of its life and cannot be repaired.
Some exemptions may also apply where replacing gas with electric presents particular challenges.
What Happens From 2027?
The Victorian Government is moving homes towards efficient electric appliances.
For gas hot water:
- Existing systems can continue operating while they are working.
- Gas hot water systems can generally still be repaired.
- From 1 March 2027, an unrepairable gas hot water system at end-of-life must generally be replaced with an electric alternative.
Heat pump hot water systems are one of the efficient electric options available.
New homes are moving towards all-electric construction requirements.
Why Are Many Homeowners Switching to Heat Pumps?
Heat pump hot water systems use electricity to transfer heat from the air into the water rather than burning gas to heat water.
They can also work well with solar panels, allowing homeowners to use daytime solar electricity to heat their water.
Victoria’s Victorian Energy Upgrades (VEU) program currently provides discounts for eligible heat pump hot water systems, helping reduce the upfront cost.
Should You Replace Your Gas Hot Water Now?
You don’t necessarily have to wait until your gas system fails.
If your system is getting old, replacing it with a heat pump before an emergency breakdown can give you more time to compare systems, check available incentives and choose the right size for your household.
EvoPlumb Services supplies and installs heat pump hot water systems across Victoria. We can help you choose a suitable system and check available rebate and discount options.
Government requirements, rebates, eligible products and exemptions can change. Check the latest Victorian Government requirements before purchasing.