Key Points
- Australia will not hit its emissions reduction targets unless it gets off natural gas, according to a new analysis.
- According to the report, nearly five million Australian households are on the gas network.
- The report says governments should help households transition away from gas and ban new gas connections.
Millions of households across Australia rely on gas every day for hot water, cooking, heating and more.
According to a new report from think tank the Grattan Institute, this needs to change if Australia is to meet its 2050 net-zero emissions targets.
But transitioning away from gas and toward all-electric homes is no small task.
So what does 'getting off' gas involve, why is it important, and what are the barriers?
Why do we need to get off gas?
Australia's federal and state governments have committed to meeting as part of their responses to climate change.
According to the Grattan Institute report, carbon emissions from producing and using gas account for 22 per cent of Australia's overall emissions.
The report said about five million households in Australia are on the gas network, and there will be "no hope" of reaching Australia's net zero emissions targets unless changes are made immediately.
The report also says moving away from gas would reduce bills for most households in the long run, with electric appliances - while more expensive to buy - significantly cheaper to run than their gas counterparts.
The Grattan Institute says most Australian households could save money if they get off gas. Source: SBS News
The think tank has recommended a six-pronged strategy, calling on state and territory governments to set dates for the end of gas and roll out communications campaigns on how and why homes should switch to all-electric.
Governments should also ban new gas connections, eliminate regulatory barriers to all-electric homes, and lower cost hurdles, the institute says.
In the future, the think tank says governments should phase out the sale of natural gas appliances, so the last remaining gas appliances are replaced with electric ones.
What does 'getting off the gas' involve?
Katy Daily and her family transitioned away from gas when they bought a house in 2021.
The house came with gas heating, a gas fireplace, and gas hot water, and they decided to get solar and replace the instantaneous hot water with a heat pump hot water system.
They also disconnected their gas heating and opted to use the reverse cycle air conditioner for heating.
Katy Daily and her family have transitioned their home away from gas to become more energy-efficient. Source: Supplied / Merri-bek City Council
"We are really happy that we have done it," she said.
"People shouldn't be afraid of it, it is really empowering to do something for the health of my family and for the health of the environment."
Ms Daily said the process for her family took a little over six months and cost roughly $18,000, but it could have been cheaper if they hadn't chosen high-end appliances.
What are the barriers?
There are a number of challenges households face when it comes to getting off gas.
For renters, the occupants do not choose appliances such as stoves and heating systems, and changes they can make are limited.
For homeowners, the upfront costs of buying new appliances and switching systems can present a significant hurdle through expensive appliances, the cost of leaving gas networks, and the potential costs of accommodating the new appliances if they need to re-wire or create space.
Some types of dwellings, such as multi-unit buildings, can also be complex to electrify due to communal water or space heating.
There are some forms of support available, with governments in Victoria, NSW and the ACT offering rebates to help homeowners go all-electric.
The federal government's $1 billion electrification package, which was included in the 2023 Budget, also offered access to low-cost loans for energy-efficient upgrades.
Australian households face a number of barriers in getting off gas and switching to more environmentally friendly energy. Source: SBS News
What does it mean for renters and landlords?
Tony Wood, one of the authors of the Getting off Gas report, told SBS News one of the challenges of the rental market is that while renters save money from gas appliances, landlords have to front the purchase costs.
With this in mind, the report says the government should incentivise landlords to transition their investment properties away from gas.
It suggests making a tax break available for private landlords who upgrade rental properties to all-electric, and later introducing minimum rental standards that require rental properties to be all-electric.
"The renters save money on the usage of the energy and the landlords have to pay for putting in the new appliances and no one's yet come up with a good solution to that," he said.
"What we've suggested is if you gave landlords an upfront tax write-off on the investment, that would be a good thing, it would give them the incentive to do it, at least for now."
Ms Daily, who was living in a rental property until 2021, agrees.
"We need minimum rental standards for rental buildings, and that includes energy-efficient appliances," she said.
"There needs to be some sort of system in place that encourages landlords to be able to invest in this type of technology.
"Renters and landlords need to be supported, and no new gas connections should be allowed."
In the meantime, there are a number of small changes renters can incorporate to lower their gas usage.
Ms Daily suggests purchasing a portable induction cooktop or using a reverse-cycle air conditioner for heating rather than gas if your rental has both.
"There are other things you can do like joining a tenants union ... and if you're comfortable, you can ask your landlord or encourage them to think about replacing appliances."
