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Chances are you have heard the latest announcement that all Victorian new home builds from January 1, 2024 will need to be electric. The aim of this move from the state government perspective is to reduce household emissions while also saving Victorians up to $1,000 off their annual energy bills.

At SAW Constructions, we are getting ready to adapt to this changing landscape of home construction. In doing that, it’s also important to unpack what it will mean for new homes and explore the benefits and challenges we could expect.

Benefits to expect from electric homes

When it comes to the benefits of building electric homes, these are likely to be the key aspects:

Reduced carbon footprint: Phasing out gas in new homes could be a significant step toward reducing the carbon footprint of homes. Minimising household emissions is one of the primary motivations behind the switch, as electric heating and cooking methods are generally more energy-efficient and produce fewer greenhouse gas emissions compared to natural gas. By moving away from fossil fuels and to cleaner energy sources such as solar panels and battery storage, we can make our homes eco-friendlier and more sustainable, aligning with global initiatives.

Single energy infrastructure: When it comes to planning and delivering projects long term, managing a single energy supply to a medium density development should simplify the process. This entails investing effort in exploring various approaches for builders to enhance their installation and maintenance procedures in order to fully leverage the advantages.

Cost savings: Electrical appliances use less energy than gas appliances to get the job done, making them cheaper to run. Over time as electrical appliances become the norm, we can benefit from economies of scale prices, which will also reduce the cost-per-unit and offer further savings.

Potential challenges arising in the electric transition

As we look toward shifting all builds across the state to meet the electric home requirements, it’s worth recognising that challenges may arise. These are the challenges we are preparing to work through and overcome:

Supply chain concerns: Electrical appliances and infrastructure will be in high demand in Victoria, and supply chain disruptions or increased costs could occur in the short term. Items such as electric heat pumps, induction cooktops and electric hot water services are likely to be affected.

Increased electrical load: Government will need to address our already struggling electricity infrastructure network to ensure supply is consistent and readily available for all dwellings.

Potential cost increase: Without additional investment into solar power and panels, homes may see electricity bills go up.

Customer resistance: With the largest gas usage rate in the country, Victorian residents have traditionally used gas in homes and businesses. The preference many people have for gas especially, particularly for cooking and heating, could make new dwelling sales more challenging.

Building high-quality electric homes with SAW

The gas-to-electric transition for new home builds in Victoria comes with both benefits and challenges. Ultimately, the success of the implementation and transition from electricity to gas will be impacted by how well the government and building industry adapts to the changes.

At SAW Constructions, we are committed to staying at the forefront of this changing landscape to provide the best solutions for our clients. As the transition unfolds, it will be crucial for homeowners, builders, and the government to work together to navigate these challenges and realise the long-term benefits of a greener and more sustainable future.