To electrify your home in Australia, a full replacement of gas appliances from your heating and cooling to your cooktop and hot water system usually costs $10,000 to $25,000 before rebates.
Thanks to generous federal and state subsidies, that figure can drop significantly, often to $6,000–$18,000. You’ll save money on running costs, cut carbon emissions, and enjoy a quieter, cleaner, more comfortable home.
The breakdown: where the costs come from
Electrifying your home isn’t a single project; it’s a series of upgrades. Here’s what most households can expect:
| Upgrade | Average Cost (Before Rebates) | What’s Involved |
|---|---|---|
| Reverse-cycle air conditioning (heating + cooling) | $2,500–$6,000 | Replace gas ducted or wall furnace with a high-efficiency heat pump |
| Heat pump hot water system | $3,000–$5,000 | Replace gas storage or instantaneous unit |
| Induction cooktop | $1,000–$3,000 | Replace gas cooktop; may need electrical circuit upgrade |
| Solar PV system | $4,000–$8,000 | Offset power use with renewable energy |
| Switchboard upgrade (if needed) | $1,000–$3,000 | Ensures safe, modern electrical capacity |
Estimated Total: $10,000–$25,000
After Rebates: $6,000–$18,000
The big boost: rebates and subsidies
Government programs across Australia are helping households electrify their homes faster and cheaper.
Federal Incentives
- Small-scale Renewable Energy Scheme (SRES): Reduces upfront costs of solar and heat pumps through Small-scale Technology Certificates (STCs), worth $2,000–$4,000.
- Rewiring Australia & Clean Energy Finance Initiatives: Provide low-interest loans for electrification projects.
State-Based Support
| State | Program | Savings Potential |
|---|---|---|
| Victoria | Solar Homes Program, rebates for solar PV (up to $1,400), heat pumps ($1,000), and batteries ($4,800) | Up to $7,000+ |
| NSW | Energy Upgrades Program, incentives for efficient air conditioners & heat pumps | $800–$2,500 |
| Queensland | Climate Smart Energy Savers Rebate, up to $1,000 off efficient appliances | Up to $1,000 |
| ACT | Sustainable Household Scheme, interest-free loans up to $15,000 | Major upfront relief |
| South Australia | Home Battery Scheme, rebates up to $2,000 | Up to $2,000+ |
With these rebates, many homeowners can electrify their homes for nearly half the full cost.
The payoff: lower running costs and cleaner living
Once your home runs on electricity, especially when paired with solar, your bills drop dramatically.
Typical annual savings:
- Heating & cooling: $400–$800
- Hot water: $300–$500
- Cooking: $100–$200
- Solar offset: $600–$1,200
That’s up to $2,500 saved each year, meaning your investment can pay for itself within 5–8 years. And with the right rebates, even faster.
What it feels like to live all-electric
Think about this: you come home on a winter evening, your reverse-cycle system has already warmed the house, the air feels clean, and dinner’s simmering on a silent induction cooktop. You’ve got no pilot lights, no gas bills, and no carbon monoxide worries, just quiet comfort powered by your own rooftop energy.
That’s what electrifying my home really means: comfort that’s cleaner, safer, and smarter.
The smart order to electrify
If you’re upgrading in stages, this order offers the best financial return:
- Start with solar PV: reduces bills immediately.
- Switch hot water to a heat pump: quick, high-impact savings.
- Upgrade to reverse-cycle heating and cooling: covers both seasons.
- Move to induction cooking: fast, safe, energy-efficient.
Each step helps your home become cheaper to run and more future-proof.
FAQs: electrify my home
Q: Can my existing electrical system handle the upgrades?
A: Older homes might need a switchboard or wiring upgrade, typically $1,000–$3,000, to safely handle additional load.
Q: Should I disconnect my gas service if I electrify my home?
A: Once you’ve replaced all gas appliances, yes. You’ll save around $80–$120 per year in gas connection fees.
Q: Can I still electrify my home if I rent?
A: Renters can still make small changes like plug-in induction cooktops or portable reverse-cycle units. Some rebates also support landlords.
Q: Do electric heat pumps work in cold areas like Geelong or Ballarat?
A: Absolutely. Modern inverter heat pumps are designed to perform efficiently even below freezing.
Now is the time to electrify your home
Energy prices are shifting, and gas costs continue to rise. Investing in electrification means locking in lower energy bills, improving air quality, and future-proofing your home’s value. Plus, every upgrade reduces your household emissions, something many buyers increasingly look for.
If you’re wondering how much it would cost to electrify your home, with all rebates applied, Too Hot to Handle can provide a clear, tailored estimate.
Save on energy, increase comfort, and live cleaner. Get your free quote today ☎

