Gas to electric hot water is rarely a straight swap. The old unit comes out, and a new one goes in, but between the two sit electrical work, a capped gas line and, often, a brick wall that was never built to take new pipework.
For most Melbourne households, the electric system to price first is a heat pump. From 1 March 2027, the choice narrows further: a gas hot water system in an existing home must be replaced with an electric one once it reaches end of life and can't be repaired.
Key takeaways
- The scope of the job sets the quote more than the brand of unit.
- Heat pumps cost more upfront and use much less power. Element tanks cost less and suit homes with plenty of solar.
- Electric instantaneous units rarely suit a house.
- A working gas unit can stay until it fails. Its replacement then has to be electric.
- Solar Victoria, Victorian Energy Upgrades and federal certificates can all apply to a heat pump, so ask about them before ruling one out on price.
Does a working gas hot water system have to be replaced?
No. A gas unit in good working order can keep running, and repairs remain possible while parts are available. The 1 March 2027 rule applies when a system fails, not before.
If the gas unit still works and money is tight, run it until it fails and plan the swap properly in the meantime. A working appliance replaced early is a real cost. The better moment to switch is when the old unit starts leaking or rusting. A system that gives out on a July morning leaves the household choosing from whatever is in stock that day.
Rentals sit under a firmer line. From 1 March 2027, rental homes must replace gas hot water systems with efficient electric alternatives at end of life.
Sometimes hot water is the last gas appliance in the house. In that case, a licensed gas fitter can disconnect the supply, the meter can be removed, and the daily supply charge stops. For small households, that charge can be half the gas bill or more.
Why do gas to electric hot water quotes vary so much?
Two quotes rarely cover the same job. One allows for relocation and electrical work, and the other leaves both out.
A unit under the kitchen sink of an older flat seldom stays there. The replacement often has to go outside, which means new pipework, plus pipes and power chased through brick or concrete on the way. A job that looked simple becomes a large one. In an apartment, an outdoor unit may also need owners corporation approval.
Older homes add a risk of their own. Units in 1970s flats and 1950s houses can hide asbestos around the old heater or flue. Anything suspect goes to a licensed removalist under WorkSafe Victoria's rules, which adds cost and time.
The cost to replace a gas hot water system has no fixed answer, and a figure given before anyone has seen the site is a guess. Ask for the full scope in writing before comparing prices. A comparable quote names:
- the make, model and warranty of the new unit
- where it will sit, and any pipework needed to get it there
- the electrical work, including any switchboard allowance
- asbestos handling, if the age of the property makes it a possibility
- gas disconnection, removal of the old unit and compliance certificates
What electrical work does it take to replace gas hot water with electric?
Usually a licensed electrician alongside the plumber, fitting a dedicated circuit with an isolator switch at the unit, plus an RCD.
Heat pump water heater electrical requirements vary by model. Smaller units can run off a standard power point, while larger ones may need a 15A outlet, so the plumber needs to know what is already installed.
Older homes bring a second complication. A hot water job can uncover a switchboard that needs upgrading, or wiring that needs replacing. Get the electrical checked before committing. Halfway through the job is too late.
When the power supply itself needs upgrading, especially for three-phase work, the job can end up costing far more than the hot water unit.
Which electric system replaces gas hot water best?
For most homes that replace gas hot water with electric, a heat pump is the strongest choice, an element tank is the cheaper and simpler alternative, and electric instantaneous rarely fits a house.
A heat pump works like a fridge in reverse, pulling heat from the outside air into the tank. It costs more upfront and uses much less power to run: the Victorian Government puts it at up to 75% less electricity than a standard electric storage system.
An element tank is cheaper to buy and simpler. Paired with plenty of solar and set to heat during the day, its running costs can be very low. The choice between it and a heat pump is a trade-off with no clear winner.
Electric instantaneous suits few homes. It draws a huge load while the tap is running and usually needs three-phase power to serve more than one outlet at once. Flow rates can disappoint. Apartments with no space for a tank are the exception.
For a fair value check, divide the installed price by the warranty years. The result is a cost per warranted year, which puts a budget unit and a dearer one on the same footing.
A rebate-driven budget heat pump is fine for a house that will be sold in a few years. Owners staying long term should spend more on a better brand.
Gas vs electric hot water: which costs less to run?
Is gas hot water cheaper than electric? Only against an element tank on a standard tariff. A heat pump or a solar-fed element tank can undercut it.
Gas vs electric hot water gets argued as one comparison, though the electric side is really three systems with different running costs. An element tank on a standard tariff is where electric's reputation for high bills comes from. Solar changes the maths: with plenty of panels and the heating pushed into the middle of the day, the same tank can run for very little. Heat pump vs gas hot water is the pairing that matters for most households, and the gas supply charge tips it further, since it stays on the bill for as long as one gas appliance remains.
How to get the most from an electric hot water system
Put the heating on a timer so it runs during solar hours. Element size and placement cover the rest.
On an element tank running off solar, a 1.8kW element in place of a 3.6kW one heats more slowly and leaves more solar for the rest of the house.
Heat pumps make about as much noise as a small split system. Keep the unit away from bedroom windows, and run it during the day so it is off by bedtime.
Gas to electric hot water rebate Victoria: which discounts apply?
Two Victorian programs and one federal scheme can apply to a heat pump: Solar Victoria's Solar Homes hot water rebate for eligible households, Victorian Energy Upgrades discounts through accredited providers, and federal small-scale technology certificates.
Solar Victoria works out its rebate after other discounts, including those certificates, have already been applied. An income test applies to the Solar Homes rebate. Victorian Energy Upgrades is market-based, so accredited providers choose which upgrades they offer and when.
An electric hot water system rebate is aimed at efficient models, so a standard element tank typically misses out.
Ask about rebates and any interest-free loan schemes before ruling a heat pump out on price. Terms change, so confirm the current settings with Solar Victoria and the Victorian Energy Upgrades program before signing a quote.
What do people get wrong about switching from gas to electric hot water?
The gas vs electric hot water conversation carries two assumptions that fall apart on inspection.
"The plumber just caps the gas and plugs in the new one." Sometimes. More often, electrical work is involved, and the unit frequently has to move as well.
"Keep gas for hot water in a blackout." A full storage tank stays hot for a long time, gas or electric. Continuous-flow gas units have no tank, and most modern ones need mains power to run, so they go cold with the grid.
A gas-to-electric hot water changeover starts with an inspection of the existing unit, the switchboard and the access to where the new system will sit. Jacksons Local Plumbing arranges that assessment, and we put the full scope in writing before any price is discussed. Book a hot water assessment.
Common questions about changing hot water from gas to electric
Are electric hot water systems expensive to run?
An element tank on a standard tariff is the expensive one. A heat pump uses far less power, and either system costs little when it heats from solar during the day.
Is it possible to convert gas hot water to electric without replacing the unit?
No. The gas appliance comes out and an electric system goes in.
Will a heat pump cope with a cold Melbourne winter?
It copes, with one weakness in the heat pump vs gas hot water comparison: recovery is slower than gas, and in freezing conditions the unit relies on a backup element. Heavy users need a bigger tank.
Is an off-peak hot water system still worth having?
For an element tank in a home without solar, it can be. Off-peak and controlled-load rates depend on the retailer and the network, so the electricity plan needs checking before the tank is chosen around it. With solar on the roof, a daytime timer usually does the job off-peak used to.
Who signs off a gas to electric hot water changeover in Victoria?
Each licensed trade certifies its own part. The plumber lodges a compliance certificate under the Plumbing Regulations 2018 (Vic) and AS/NZS 3500 with the Building and Plumbing Commission (formerly the VBA), gas work follows AS/NZS 5601, and the electrician's certificate of electrical safety goes to Energy Safe Victoria.
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