Gas

Going All-Electric in NSW: A Plain-English Guide to Quitting Gas in 2026

Marcus Lee · 2026-09-23 · 7 min read

If you're weighing up going all-electric and quitting gas in 2026, you're not alone — thousands of NSW households are asking the same question as gas supply charges keep climbing and induction cooktops, heat pumps and reverse-cycle air conditioning become the default in new homes. This guide walks through the real costs, the rebates on offer in NSW, which appliances to swap first, and how to work out whether ditching gas actually makes financial sense for your household.

Why NSW Households Are Quitting Gas in 2026

Gas retailers charge a daily supply charge whether you use any gas or not — often somewhere in the vicinity of $0.80 to $1.20 a day depending on your distribution zone and retailer, which adds up to several hundred dollars a year before you've cooked a single meal. Wholesale gas prices have also been volatile, and network costs to maintain ageing gas pipes are increasingly being spread across a shrinking number of connected homes. That means the households still on gas are, in effect, subsidising the network for everyone else. Electricity, by contrast, is where the investment (and the rebates) are flowing — rooftop solar, batteries, and efficient electric appliances. This is the core financial logic behind the shift, separate from any climate motivation: a fully electric home paired with solar can often run at a much lower total energy cost than a dual-fuel home.

Before you commit to any appliance purchases, it's worth checking your current bills properly — see what you could save in 2 minutes with a free, no-obligation bill check that compares your actual usage against current electricity and gas offers in the market.

What "Going All-Electric" Actually Involves

Quitting gas doesn't have to happen in one weekend. Most NSW households do it appliance by appliance, over one to several years, as each gas appliance reaches the end of its life. The main gas appliances in a typical Australian home are:

Cooktop — replaced with an induction cooktop, which is faster to boil water and easier to clean than gas, though it requires induction-compatible cookware.
Hot water system — replaced with a heat pump hot water system, which uses roughly a third of the electricity of a standard electric resistance system.
Space heating — replaced with reverse-cycle air conditioning (a "split system"), which is dramatically more efficient than gas ducted heating or gas wall furnaces.
Gas log fires or ducted heating — usually the last to go, often replaced during a broader renovation.

Once every gas appliance is gone, you can disconnect the gas meter entirely and stop paying the daily supply charge — this is where the bulk of the ongoing saving comes from, not just from cheaper running costs per appliance.

What It Costs Upfront

Costs vary a lot depending on your home, but as a rough guide: an induction cooktop typically costs more than a standard gas cooktop, a heat pump hot water system costs more upfront than a gas storage unit (though NSW and federal incentives can offset a meaningful chunk of this — see below), and a reverse-cycle split system is comparable in price to a gas heater installation. Always get at least two or three quotes from licensed electricians and plumbers, since installation costs (not just the appliance) vary significantly by installer and by how much rewiring or switchboard upgrade work is needed.

NSW Rebates and Incentives for Going Electric in 2026

NSW has been actively incentivising the switch away from gas. Programs and eligibility criteria change, so treat the following as a starting point for your own research rather than a guarantee:

NSW Home Energy Saver / energy efficiency schemes have periodically offered rebates or subsidies toward heat pump hot water systems and other efficient appliances for eligible households, particularly concession card holders.
Small-scale Technology Certificates (STCs) — a federal scheme, not NSW-specific — reduce the upfront cost of eligible heat pump hot water systems and can be applied as an instant discount by the installer.
Solar and battery incentives, including the federal Cheaper Home Batteries program, can make pairing an all-electric home with solar and a battery more affordable, since a battery lets you use more of your own solar generation for evening cooking and heating instead of buying it back from the grid.
Some NSW energy retailers run their own appliance upgrade or interest-free loan offers for existing customers switching from gas — worth asking about directly.

Because these programs are updated regularly and eligibility depends on income, concession status, and location, check the current NSW Government energy savings website and your retailer directly before budgeting around a specific rebate amount.

Will Quitting Gas Actually Save You Money?

This depends heavily on your household's specific gas usage, whether you have solar, and your electricity plan. As a general rule of thumb:

Households with low gas usage (e.g. just a cooktop) but a high daily supply charge often save quickly by disconnecting gas entirely, since they're paying a large fixed fee for very little actual gas.
Households with gas ducted heating in a large or poorly insulated home may see bigger swings — reverse-cycle heating is more efficient, but a large draughty home will still cost more to heat regardless of fuel type, so improving insulation alongside the switch matters.
Households with rooftop solar generally benefit most from going all-electric, because they can run induction cooktops, heat pumps, and reverse-cycle systems using free daytime solar generation rather than buying grid electricity or gas.

If you haven't looked at solar yet, it's worth getting a free solar savings estimate before finalising your all-electric plan, since the two decisions are closely linked. It's also worth comparing electricity plans specifically — once gas is out of the picture, your electricity plan and its rates for the times you'll actually be using energy (early morning showers, evening cooking) become far more important. Compare current electricity plans and, while you're still on gas, current gas plans to make sure you're not overpaying during the transition period.

What to Watch Out For

A few practical traps catch people out:

Switchboard capacity — older homes sometimes need an electrical switchboard upgrade to safely run induction cooktops and heat pumps, which adds to upfront cost.
Peak demand charges — some electricity plans charge more during certain hours; if you're now running an induction cooktop at 6pm on a "peak" tariff, check your plan structure.
Disconnection fees — gas retailers may charge a fee to physically disconnect and remove a meter; factor this into your final cost comparison.
Rental properties — if you're a tenant, you'll need landlord approval for most of these changes; owners considering a rental upgrade may find the rebates make it worthwhile ahead of re-letting.

For broader context on managing your NSW electricity plan once you've gone all-electric, our NSW electricity guide covers how to read your usage data and pick the right tariff structure for an electrified home. If you're in Victoria or Queensland instead, the equivalent considerations are covered in our Victorian and Queensland guides, since rebate schemes and gas network costs differ by state.

Steps to Take

Pull your last 12 months of gas and electricity bills and note your daily supply charge for gas versus your actual gas usage cost — this tells you how much you're paying just to stay connected.
List your gas appliances and their approximate age, so you can plan replacements around natural end-of-life timing rather than replacing everything at once.
Check current NSW and federal rebates for heat pump hot water systems, induction cooktops, and battery storage before getting quotes, since incentives can materially change the payback period.
Get two to three quotes from licensed electricians for any switchboard upgrade needed to support induction cooking and heat pump systems.
Compare electricity plans and consider a solar quote before finalising your all-electric setup, since the right electricity plan and solar generation both affect your total savings.
Once every gas appliance is replaced, contact your gas retailer to disconnect the meter and stop the daily supply charge for good.

Rates, rebates, and appliance prices change often — the figures above are general guidance, not quotes, so always compare current offers before making a decision.

The single most useful first step is understanding exactly what you're paying now. Get your free personalised bill check at /savings to see how your current electricity and gas costs stack up, and while you're there, compare current electricity deals to make sure your plan is ready to support an all-electric home. It takes two minutes and could save you from overpaying through the entire transition.