Sustainability Victoria's annual State of Sustainability social research takes a deep dive into the views of everyday Victorians to guide investment in circular economy and renewable energy.
In 2025, the third year of the research, we're beginning to see the dial turn away from gas and towards electrification.
While the number of gas appliances and connections in Victorian homes has remained steady since 2023, gas consumption has declined during the same period. So, what could explain a drop in gas use without a change in the number of appliances?
This year researchers decided to dig deeper, and heating emerged as an area where Victorians are making the switch
For the first time, respondents with gas heating were asked if they also had an electric split system. The findings shed light on the potential cause of lower gas use: 60% of homes with gas heating also have reverse-cycle electric heating. Further, more than 50% of those with both appliances use their electric system for heating rather than gas.
'Heating is one of the biggest offenders when it comes to home energy use, this shift in actual use indicates a move in the right direction when it comes to weaning off gas," said Dianna McDonald, Sustainability Victoria's Social Research Lead.
"It's a promising finding that we wouldn't have discovered without asking additional questions,'
Momentum grows as Victorians replace gas appliances with electric
More Victorians than ever are replacing gas appliances with electric ones. This year, of those who recently replaced their gas hot water system, 57% chose electric appliances over gas - more than double the rate in 2024.
These changes in Victorian consumer behaviour reflect a broader trend that has seen the number of heat pump hot water systems installed in Australia increase by 70% in the last year. (Heat Pump Hot Water Systems - A Complete Buyers Guide | Solar Choice)
This significant increase in people switching to electric hot water systems indicates current state and federal government rebate schemes are having an impact. Survey respondents also cited energy costs, safety and environmental considerations as factors influencing their decision to move to electric.
In addition, of those who recently replaced their gas heating systems, 65% chose electric instead of gas, up from 52% in 2024.
Interestingly, in 2025 all age groups preferred electric appliances, compared to 2024 when 16-34-year-olds were mostly swapping gas for electric.
Within the next decade around 70% of Victorians are expected to replace their heating and hot water systems. If the trend of switching to electric continues, it will pave the way to achieving Victoria's goal of a 75-80% emissions reduction by 2035.
Tradies and costs influence decision to switch
Of Victorians who expect to replace an appliance in the next 1-2 years, between a third to a half plan to replace their gas appliance with an electric one.
Our survey found the main factors influencing consumer decision-making were energy costs and recommendations from tradespeople. This highlights the trusted role of tradespeople in helping consumers understand the benefits of switching to electric appliances.
Researchers also identified the importance of encouraging people to consider their options before they need to replace their gas appliances. This would help consumers make the best decision for their household without the short-term pressure of needing to replace a broken appliance.
While almost half of Victorians (48%) are aware that switching from gas to electric appliances can help tackle climate change, further public education could help increase this awareness and inspire more households to make the switch.
Sustainability Victoria will continue tracking these trends through State of Sustainability research to better understand replacement behaviours as consumers continue to move away from gas.
