How to save up to $10,000 on energy bills

VICTORIAN households can save up to $10,000 in energy bills over a decade, according to a report — and all they need to do is make one simple swap.

SWITCHING from gas to electric heating can save Victorian households up to $10,000 in energy bills over a decade, a study has found.

Ditching ducted gas for reverse cycle airconditioning when a heater needs replacing is now a cheaper option, according to the Alternative Technology Association.

The cost review has also questioned the need for new homes to be connected to gas.

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“Victorians are used to thinking of gas as a cheaper fuel, but that mindset is out of date due to improved electric heating efficiency,” ATA energy analyst Dean Lombard said.

“While the upfront cost can be a bit more for electric, over time you end up ahead.”

The Household Fuel Choice in the National Electricity Market report examined purchase, installation and running costs for new gas versus new electric heating, cooking and hot water.

Alternative Technology Association energy analyst Dean Lombard. Picture: Supplied

Melburnians replacing ducted gas with reverse cycle aircon to heat an established, non-solar home would be $2000 to $3000 better off over a decade, depending on house size.

In parts of country Victoria, estimated savings ranged from $2500 to $10,000.

It also suggests a new home that is all-electric with 5kW solar panels will over a decade save owners $9000 in Melbourne, and up to $13,000 elsewhere, compared with combined gas and electricity and no solar.

“There is just no reason economically for new homes to be built with both electricity and gas. This has been the case for many years in Australia’s north, but it’s now also clearly the case in colder climates like Victoria.

“Split system air-con is far more efficient than gas appliances, solar systems are cheaper than ever, and gas supply charges can be avoided.”

An all-electric home with rooftop solar at The Cape housing estate. Picture: Supplied

But Energy Networks Australia CEO Andrew Dillon said the calculations were “simplistic”.

Gas was still supplied to most Victorian homes at about half the cost of electricity.

“Abandoning gas would cost customers more because of the increased electricity network infrastructure that would need to be built,” Mr Dillon said.

“ENA member companies’ analysis shows that the typical residential customer in Victoria will save several hundred dollars a year using gas, and also save around five tonnes of carbon dioxide compared to mains electricity which is mostly from coal.”

The Cape new housing estate at Cape Paterson on Victoria’s Bass Coast has eliminated gas, with all homes to be electric with rooftop solar.

Mr Lombard said even using an existing reverse cycle airconditioner for heating, rather than an existing gas walled heater, was about $200 a year cheaper.

However, it was usually best to remain with gas for a hot water system at replacement, unless it was the only gas appliance in the home.

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@KarenCollierHS