New analysis: save money by ditching gas
Renew has modelled the impacts on household energy bills from connecting new homes to the gas network in Melbourne.
Using energy tariffs from June 2022, we find that choosing to ditch gas connections and build all-electric homes leaves households financially better off.
We find that building a standard, 6-Star all-electric home cuts $845 or 35% off of annual bills compared to a business-as-usual dual fuel home.
By going further and building an efficient 7-Star home with no gas connection, efficient appliances and rooftop solar, households can save $1859 a year, or 76% off annual energy bills.
Higher gas and electricity tariffs make the potential savings from efficient electric appliances, rooftop solar, better energy efficiency, good insulation, and getting off gas even more important for cutting household cost of living pressures.
Soaring wholesale energy prices are set to hit households, with states like Queensland and NSW that are highly dependent on coal and gas particularly hard hit. There is a risk that the wholesale price crunch could have a major effect on smaller retailers, impacting their customers in the short term while reducing competition for the big retailers in the longer term.
There is no reason to build new homes with gas. For homes with an existing gas connection there is a cost to transition. Connecting new homes to gas is locking in this transition cost for future residents or governments.
Renters, social housing residents, and people on low incomes will be hit hardest by gas price rises. Government action is needed to make sure that these households aren’t locked out of the energy transition.