Pricing the Switch
How much does it cost to switch from gas appliances, to electric?
As it turns out, it might be pricier than expected.
A report by Frontier Economics titled ‘Cost of switching from gas to electric appliances in the home’ was prepared for the Gas Appliance Manufacturer’s Association of Australia in 2022.
For everyday Aussie homes, it paints a realistic picture of the cost that could be involved with switching from currently functional gas appliances, to electric.
With bill savings often touted as the benefit of going electric, the report identifies that those savings may not offset the costs of acquiring, installing and maintaining new appliances, as well as the potential for changes in the energy market.
Through data collected from appliance installers, the study presents a detailed cost analysis for three Victorian household archetypes transitioning to electric appliances, including the removal of existing appliances, purchase and installation of new appliances, and potential electricity supply upgrades.
Across the three options, additional costs are between $1,500 to $19,000, noting that quoted figures are ‘sensitive to context’, and that the decommissioning of gas appliances will cost homeowners on the value of those appliances and their installation.
“…There are a lot of gas-related costs that have been sunk in Victorian homes that still have value while gas appliances are in use, but that value is lost when converting to electrical appliances,” the report said.
“For a significant number of Victorian consumers, these costs in conjunction with appliance costs will make the cost of electrification a challenging financial prospect.”
The report concludes the upfront costs for a transition are significant, varying greatly depending on the household type and the level of amenity desired, estimating additional costs to Victorian consumers of between $4 billion to $31 billion.
A challenge amplified by the cost of living and housing crises, Victorians are faced with difficult decisions as Government continues to decide which fuel homeowners will use.
Explore
with Natural Gas Subscribe
