Switching from gas to all-electric appliances in an NSW home can save up to $2,771 per year for a house or $2,400 for an apartment, rising to around $4,000 annually when paired with rooftop solar, according to the NSW Government's Climate and Energy Action program. For new builds and major renovations subject to BASIX certification, the all-electric pathway also simplifies compliance — BASIX rewards heat pump hot water systems over gas, and eliminating gas connections removes an entire category of energy assessments from the certificate.
What Does "All-Electric Home" Mean in NSW?
An all-electric home replaces every gas appliance with an electric equivalent. This means swapping gas hot water for a heat pump or solar hot water system, gas ducted heating for reverse-cycle air conditioning, and gas cooktops for induction. Once all gas appliances are removed, the gas connection can be permanently abolished, eliminating the $300 to $400 annual gas supply charge that households pay regardless of how much gas they actually use.
In the context of NSW building approvals, the all-electric approach intersects directly with BASIX energy targets. The BASIX energy section assesses hot water systems, space heating and cooling, lighting, and swimming pool equipment. Gas hot water systems score poorly compared to heat pump systems, which receive preferential scoring because they use approximately one-third of the electricity of a conventional electric storage system. By designing all-electric from the outset, your BASIX energy score improves automatically.
How Does BASIX Reward All-Electric Homes?
BASIX allocates energy points based on the efficiency of each appliance type. Heat pump hot water systems receive the highest BASIX energy score because they achieve a coefficient of performance (COP) of 3.0 to 4.0, meaning they produce three to four units of heat for every unit of electricity consumed. By contrast, gas storage hot water systems have a COP of approximately 0.75 to 0.85, losing 15 to 25 per cent of energy as flue exhaust heat.
For space heating, reverse-cycle air conditioners also score well under BASIX, with modern units achieving COPs above 4.0. Induction cooktops do not directly affect the BASIX energy score because cooking is not assessed, but removing gas eliminates the need for gas safety compliance and reduces the total number of energy assessors required during construction.
| Appliance | Gas System COP | Electric Equivalent COP | BASIX Energy Advantage |
|---|---|---|---|
| Hot water | 0.75 to 0.85 | 3.0 to 4.0 (heat pump) | High — top BASIX score |
| Space heating | 0.80 to 0.95 | 4.0+ (reverse-cycle AC) | High — equivalent or better |
| Cooking | N/A (not assessed) | N/A (not assessed) | None — no BASIX impact |
| Supply charge | $300 to $400/year | $0 (no gas connection) | Indirect — removes gas fee |
What Are the Cost Savings of an All-Electric Home in NSW?
According to the NSW Climate and Energy Action program, an all-electric NSW house or small business saves up to $2,771 per year compared to a dual-fuel home. When rooftop solar is added, annual savings increase to approximately $4,000. For apartments, the savings are $2,400 per year. These figures account for the elimination of gas supply charges, the higher efficiency of electric appliances, and the ability to self-consume solar energy during the day.
Breaking down the savings by appliance:
| Upgrade | Annual Saving | Source |
|---|---|---|
| Heat pump hot water (replacing gas) | Up to $800/year | NSW Climate and Energy Action |
| Reverse-cycle AC (replacing gas heating) | $300 to $600/year | NSW Climate and Energy Action |
| Gas supply charge elimination | $300 to $400/year | Typical NSW gas retailer fees |
| Rooftop solar (6.6 kW system) | Up to $1,400/year | NSW Climate and Energy Action |
| Induction cooktop (replacing gas) | $50 to $100/year | Energy retailer comparisons |
These savings compound over the 10 to 15 year lifespan of the appliances. Over a 15-year period, a household with solar could save $60,000 or more compared to maintaining gas connections.
How Does the All-Electric Pathway Work with BASIX Certification?
When you lodge a Development Application (DA) or Complying Development Certificate (CDC) for a new home or a renovation costing $50,000 or more, you must generate a BASIX certificate through the NSW Planning Portal. The BASIX tool assesses three categories: water, energy, and thermal comfort. The energy section is where the all-electric pathway delivers its greatest advantage.
For new homes, the BASIX energy target requires approximately a 40 per cent reduction in greenhouse gas emissions compared to the pre-BASIX benchmark. Selecting a heat pump hot water system and reverse-cycle air conditioning in the BASIX tool typically satisfies the energy target with margin to spare, allowing flexibility in other areas such as lighting or landscaping. If you also install solar PV, the BASIX energy score improves further, potentially allowing trade-offs in other sections of the certificate.
For alterations and additions, the May 2026 BASIX tool upgrades streamlined the workflow for renovation projects. The upgraded tool reduces data entry for common renovation scenarios and provides clearer guidance on which sections apply to the new work versus the existing dwelling. All-electric renovations benefit because the tool only assesses new appliances, not existing ones — so upgrading from gas to electric during a renovation automatically generates a compliant BASIX energy score for the new work.
What Is the Upfront Cost of Going All-Electric?
The upfront cost of an all-electric home depends on whether you are building new or retrofitting an existing home. For new builds, the cost difference is minimal — in many cases, all-electric is cheaper because you avoid the cost of gas connection infrastructure (typically $1,200 to $2,500 for the gas meter, piping, and certification).
| Component | New Build (All-Electric) | New Build (Dual Fuel) | Retrofit (Replacing Gas) |
|---|---|---|---|
| Hot water system | $2,500 to $4,500 (heat pump) | $1,200 to $2,000 (gas storage) | $2,500 to $4,500 |
| Space heating/cooling | $3,000 to $8,000 (reverse-cycle) | $4,000 to $10,000 (gas + AC) | $3,000 to $8,000 |
| Cooktop | $800 to $2,500 (induction) | $500 to $1,500 (gas) | $800 to $2,500 |
| Gas connection | $0 (not required) | $1,200 to $2,500 | $0 (disconnection ~$220) |
| Solar PV (6.6 kW, optional) | $5,000 to $8,000 | $5,000 to $8,000 | $5,000 to $8,000 |
| Total (excl. solar) | $6,300 to $15,000 | $6,900 to $16,000 | $6,500 to $15,200 |
For new builds, the all-electric pathway is typically cost-neutral or slightly cheaper than dual fuel, primarily because the gas connection cost is eliminated. For retrofits, the payback period is usually three to five years based on the annual savings of $2,771 for a house.
Which NSW Councils Have Banned New Gas Connections?
Several NSW local government areas have moved to ban or restrict new gas connections in new residential developments, citing health concerns and climate targets. The NSW Government's own electrification guidance notes that using gas in the home has been proven harmful to health, causing respiratory issues and even deaths. As of August 2026, councils that have taken action on new gas connections include parts of the Inner West, City of Sydney, and Parramatta council areas, with more expected to follow.
This trend means that designing all-electric homes is not just a sustainability choice — it is increasingly a compliance requirement. Developers and builders who continue to specify gas connections may find themselves unable to obtain council approval in these areas, adding delays and redesign costs to projects.
How Does Solar PV and Battery Storage Enhance the All-Electric Home?
Rooftop solar PV is the multiplier that transforms a good all-electric home into an outstanding one. A standard 6.6 kW solar system in Sydney generates approximately 9,000 kWh per year, which can power a heat pump hot water system, reverse-cycle air conditioning, and household appliances during daylight hours. Adding a battery allows excess solar energy to be stored for evening use, reducing grid electricity purchases to near zero.
From a BASIX perspective, solar PV contributes directly to the energy score. The BASIX tool credits solar PV based on system size and orientation, with north-facing arrays receiving the highest credits. The NSW Emergency Backstop Mechanism, rolling out from late 2026, requires all new and upgraded rooftop solar systems up to 200 kW to use CSIP-AUS compliant inverters that can receive signals from distribution networks to temporarily reduce exports during rare grid emergencies. This does not affect existing unmodified systems and is managed entirely by the installer.
For homeowners considering the full all-electric package, the optimal installation sequence recommended by the NSW Government is: solar PV and battery first, then heat pump hot water, then reverse-cycle air conditioning, then induction cooktop, and finally gas disconnection. This sequence maximises self-consumption of solar energy at each step.
What Are the Health Benefits of Removing Gas from Your Home?
Gas combustion in homes releases nitrogen dioxide, carbon monoxide, and fine particulate matter. Studies cited by the NSW Government show that gas cooking is associated with increased asthma rates in children, and gas heaters without proper flueing can cause carbon monoxide poisoning. Induction cooktops produce no combustion by-products, and reverse-cycle air conditioning provides heating without any indoor emissions.
The health argument is particularly relevant for families with young children, elderly residents, or anyone with respiratory conditions. Removing gas from the home improves indoor air quality by eliminating the primary source of indoor nitrogen dioxide, which can reach concentrations exceeding outdoor air quality standards during cooking with gas.
What Should Homeowners, Developers, and Builders Know?
For Homeowners Planning a Renovation
If your renovation costs $50,000 or more, you need a BASIX certificate. This is the ideal time to switch from gas to electric, because the BASIX tool only assesses new work. Replacing a gas hot water system with a heat pump during a renovation generates a compliant BASIX energy score for the new work without needing to upgrade existing appliances. Budget $2,500 to $4,500 for a heat pump hot water system and $3,000 to $8,000 for reverse-cycle air conditioning. The payback period is typically three to five years.
For Developers of New Residential Projects
Design all-electric from the concept stage. Specify heat pump hot water, reverse-cycle air conditioning, and induction cooking in your BASIX certificate application. This approach simplifies compliance, eliminates gas connection infrastructure costs, and future-proofs the development against council gas bans. For multi-dwelling developments, consider centralised heat pump systems for shared hot water, which score well under the BASIX multi-dwelling pathway.
For Builders and Certifiers
Ensure your BASIX certificate commitments match the installed appliances. If the certificate specifies a heat pump hot water system, a gas storage system cannot be substituted without re-lodging the certificate. The BASIX certificate is a legal document attached to the development consent, and compliance is checked at the Occupation Certificate stage. Non-compliance can prevent issuance of the Occupation Certificate, delaying handover to the homeowner.
Frequently Asked Questions
Can an all-electric home meet BASIX requirements without gas?
Yes. BASIX does not require gas connections. In fact, heat pump hot water systems score higher than gas systems in the BASIX energy assessment, making all-electric homes easier to certify. The BASIX energy target requires a 40 per cent reduction in greenhouse gas emissions, and heat pumps with a COP of 3.0 to 4.0 contribute significantly to meeting this target.
How much does it cost to disconnect gas in NSW?
Permanently abolishing a gas connection in NSW typically costs around $220 for the disconnection fee charged by the gas distributor, plus any plumbing work required to cap the gas line. This is a one-time cost that eliminates the $300 to $400 annual gas supply charge permanently. Your plumber and gas fitter can coordinate the disconnection with the gas retailer.
Does BASIX assess cooking appliances?
No. BASIX does not assess cooking appliances in its energy section. However, choosing an induction cooktop over gas eliminates the need for gas safety certification during construction and removes a gas connection from the project entirely. This simplifies the overall compliance process even though cooking is not directly scored.
Is solar PV required for BASIX compliance?
Solar PV is not strictly required for BASIX compliance, but it significantly improves the BASIX energy score. A 6.6 kW north-facing solar system can contribute enough energy credits to allow trade-offs in other sections of the certificate. For new homes, most BASIX-certified designs include solar PV because it is the most cost-effective way to achieve the energy target.
What is the Emergency Backstop Mechanism and does it affect my solar?
The Emergency Backstop Mechanism (EBM) is a NSW Government requirement rolling out from late 2026. It requires all new and upgraded rooftop solar systems up to 200 kW to use CSIP-AUS compliant inverters that can receive signals from distribution networks to temporarily reduce exports during rare grid emergencies. It does not affect existing unmodified systems, is rarely activated, and is managed entirely by your solar installer through the CER Installer Portal.
Are heat pump hot water systems noisy?
Modern heat pump hot water systems produce approximately 37 to 45 decibels at one metre, comparable to a quiet conversation or refrigerator. They are typically installed outdoors, and noise is rarely a complaint when positioned away from bedroom windows. Some models include a quiet mode that further reduces noise during overnight operation, which is useful when the system runs on off-peak or solar energy.
Can I keep my gas connection and still pass BASIX?
Yes. BASIX does not prohibit gas connections. You can pass BASIX with a gas hot water system if other energy measures compensate. However, gas systems score lower in the energy assessment, requiring more investment in other areas such as additional solar PV, higher insulation, or more efficient lighting to achieve the same energy target. The all-electric pathway is typically the simpler and cheaper compliance route.
What happens to my BASIX certificate if I switch from gas to electric after approval?
If you change appliances after the BASIX certificate is issued, you must lodge an amendment through the NSW Planning Portal. The BASIX tool will regenerate the certificate with the new appliance selections. Switching from gas to electric almost always improves the energy score, so the amended certificate should pass without issue. Consult your BASIX assessor or certifier to manage the amendment process.
Sources:
- NSW Climate and Energy Action: energy.nsw.gov.au/households/upgrades/switch-electric
- NSW Planning Portal BASIX: planningportal.nsw.gov.au/development-and-assessment/basix
- NSW Emergency Backstop Mechanism: energy.nsw.gov.au/households/action/initiatives/emergency-backstop
- BASIX Tool Upgrades (1 May 2026): planningportal.nsw.gov.au/news/basix-tool-upgrades-now-live
- Victorian All-Electric Standards (comparative): energy.vic.gov.au/households/save-with-all-electric-home