If you build homes in Victoria, the shift to all-electric construction is already part of your daily work. Since 1 January 2024, planning permit applications for new homes, apartment developments and residential subdivisions have not been able to connect to reticulated natural gas. That changes what gets specified, how trades are sequenced and what your clients expect from heating, cooling and hot water.
This guide covers what builders need to understand about the all-electric requirement and how it affects HVAC and hot water scope on projects in Ringwood, Dandenong and the wider Melbourne area. Regulations continue to evolve, so always confirm current requirements with the Victorian Government or your building surveyor.
What has changed?
From 1 January 2024, new homes and residential subdivisions that require a planning permit have been required to be all-electric, meaning no connection to the reticulated natural gas network. This applies to new dwellings, apartment developments and residential subdivisions, and conditions attached to subdivision approvals can also restrict future gas connections on those lots.
Some things to note:
- The rule is about reticulated natural gas. Bottled LPG is treated differently.
- Renovations and extensions to existing homes are not covered in the same way.
- Additional changes have been announced or flagged for later dates, including proposals to broaden all-electric requirements. Check the latest guidance rather than relying on older summaries.
What it means for heating and hot water scope
Removing gas from a home changes the heating, cooling and hot water scope in several ways.
Ducted gas heating drops off the table. On projects covered by the requirement, ducted gas heating and gas hot water are no longer options. Reverse-cycle ducted air conditioning becomes the default whole-home heating and cooling solution, often paired with hydronic heating where a client wants radiant warmth.
Hot water becomes the key decision. Without gas, hot water typically comes from a heat pump, an all-in-one system like Reclaim Energy or Emerald, or electric storage with solar boosting. Each has different installation requirements, space needs and noise considerations. We cover the options in our separate guide to heat pump hot water for new builds.
Electrical loads increase. Heat pump hot water, induction cooking and reverse-cycle heating and cooling all draw on the switchboard. Coordinate early with your electrician so circuits are sized correctly, particularly on larger homes running ducted systems and heat pump hot water together.
Space and access planning. Heat pump hot water units and ducted system condensers both need outdoor space with clearance for airflow. Confirm locations during design, not at fit-off, especially on tighter blocks.
Potential benefits for buyers
The Victorian Government has said that all-electric homes can reduce energy bills, particularly when combined with rooftop solar. Builders can use this in sales conversations, but it’s wise to avoid promising specific savings, since actual results depend on the home, the system and how it’s used. Point clients to independent calculators or their retailer for estimates.
Incentives and rebates
Various incentives have supported the shift to electric appliances in Victoria, including programs that reduce the upfront cost of efficient hot water systems and heating and cooling. The Victorian Energy Upgrades program is one example, and Efficient Pure Plumbing participates in it. Eligibility and amounts change from time to time, so confirm what’s currently available before quoting or advertising a discount.
Common builder questions
Do I need a gasfitter on all-electric jobs? Not for gas installation, but you’ll still need licensed refrigeration and electrical trades for heating, cooling and hot water equipment.
Can I still offer gas heating on any projects? That depends on the project type, whether a planning permit applies, and the current rules. Existing homes, some extensions and some non-residential buildings may differ. Always check with your surveyor or the relevant authority.
Will all-electric affect my program? Slightly. The main change is coordination: electrical capacity, hot water unit placement and heating and cooling design all need to be settled earlier. Late changes to the switchboard or the hot water location are among the most disruptive.
Talking to clients about all-electric
Most buyers now expect a clear explanation of how their home will work without gas. Be ready to explain how the hot water system operates, what the heating and cooling arrangements are and how the running costs compare. Provide manuals and warranty details at handover, and make sure clients know who to call for servicing. Clear, early communication turns what could be a source of confusion into a selling point, and it reduces callbacks from owners who simply weren’t sure how their new appliances work.
Design coordination checklist
- Confirm whether the project is subject to the all-electric requirement
- Decide hot water system type and location at design stage
- Agree electrical capacity and switchboard design with your electrician
- Plan outdoor space, clearances and drainage for heat pump units
- Choose heating and cooling systems early, and confirm who is installing them
- Check current VEU rebates before quoting
Local relevance: Ringwood and Dandenong
Across Ringwood and Dandenong, medium-density and infill projects are common, and courtyards or narrow side access can limit outdoor equipment placement. Planning where heat pump units, condensers and outdoor plant will sit is a genuine design constraint on these sites, and it’s far easier to solve on paper than on site.
Working with a team that understands electrification
The all-electric shift is a good moment to review who you work with. Efficient Pure Plumbing installs and services ducted and split reverse-cycle systems, hydronic heating, evaporative cooling and heat pump hot water for builders across Ringwood, Dandenong and Melbourne’s east and south-east, through our dedicated builder and trader partner program.
