All-electric vs gas: how to set up a new home
Connect gas or go all-electric? How the two options compare for cooking, hot water, heating and your energy rating in SA and Victoria.
One of the bigger decisions on a new build is whether to connect gas or build an all-electric home. The ground has shifted here. Efficient electric appliances like induction cooktops and heat pump hot water are now excellent, Victoria has moved to all-electric for many new homes through its planning rules, and going electric pairs neatly with solar. Here is how the two approaches compare so you can set the home up the way you want to live.
| All-electric | With gas | |
|---|---|---|
| Cooking | Induction, fast, precise and easy to clean | Gas cooktop, the traditional flame many cooks prefer |
| Hot water | Heat pump, very efficient | Instantaneous gas, proven and quick to recover |
| Heating | Reverse-cycle, also cools in summer | Gas ducted or space heating |
| Works with solar | Yes, run appliances off your own power | Partly, gas sits outside your solar |
| Connection | One service to the home | Two services and gas supply charges |
| Rules in VIC | Aligns with Victoria’s all-electric direction for many new homes | Increasingly restricted for new builds in VIC |
Ducted vs split-system air conditioning
Reverse-cycle air conditioning comes two main ways. A split system serves one room or zone from a wall head and an outdoor unit, is the most affordable to install, and lets you heat or cool only the rooms you use. Ducted reverse-cycle runs through ceiling vents to condition the whole home evenly and discreetly, at a higher install cost, and is best with zoning so you are not paying to condition empty rooms. Splits suit smaller homes and staged budgets, ducted suits whole-home comfort in a new build.
Evaporative vs refrigerated cooling
Evaporative cooling pulls fresh air through wet pads and works best in dry heat with windows cracked open, using less power but struggling on humid days. Refrigerated cooling, which is what reverse-cycle air conditioning uses, works in any conditions, cools to a set temperature and also heats in winter, for more running cost on the hottest days. In much of SA and Victoria refrigerated reverse-cycle is the versatile default, while evaporative still appeals to some in reliably dry climates.
Hydronic vs ducted heating
Hydronic heating warms water and circulates it through panel radiators or in-slab pipes, giving a gentle, quiet, even warmth that many people find very comfortable, and it pairs well with an efficient heat pump. It costs more to install and responds more slowly than air. Ducted heating pushes warm air through vents, heats up fast and can share ducting with cooling. Hydronic suits those chasing comfort in cooler Victorian climates, ducted suits quick, flexible whole-home heating.
Ceiling fans vs air conditioning
These are partners more than rivals. Ceiling fans use very little power and make a room feel cooler by moving air over your skin, but they do not actually lower the temperature. Air conditioning does cool the air but uses far more energy. The smart setup is both: fans to stay comfortable on mild days, and to let you run the air conditioner a degree or two higher when it is on, which trims running costs.
Induction vs gas cooktop
Induction cooktops heat the pan directly with a magnetic field, so they are fast, precise, easy to wipe clean and keep the kitchen cooler, and they suit an all-electric home running on solar. Gas gives the visible flame many cooks are used to and instant visual control, but it adds a gas service, vents combustion into the kitchen and works against your energy score. If you have only cooked on gas, it is worth trying induction before deciding, as many cooks prefer it once they switch.
Why all-electric is on the rise
Electric appliances have caught up and then some. Induction cooktops are fast and precise, heat pump hot water is very efficient, and reverse-cycle air conditioning heats in winter and cools in summer from one system. Crucially, an all-electric home runs on the solar you generate, which is the cheapest energy you will ever use. Victoria has also moved its planning rules toward all-electric for many new homes.
Where gas still has fans
The main holdout is the kitchen, where plenty of cooks simply prefer a gas flame, and some owners like the fast recovery of instantaneous gas hot water. If you want gas, it is worth knowing it adds a second service with its own supply charges, sits outside your solar, and works against your Whole-of-Home energy score. In Victoria it is also increasingly restricted on new builds, so check the current rules for your project.
All-electric
- Pairs perfectly with solar and a battery
- Induction and heat pump appliances are efficient and modern
- One service, no gas supply charge
- Aligns with where new-build rules are heading
- Some cooks prefer a gas flame
- Relies on a well-sized solar and electrical setup to shine
- Heat pump hot water needs a sensible location for the unit
With gas
- Gas cooktop flame many cooks love
- Fast hot water recovery
- Familiar for heating
- A second service with ongoing supply charges
- Sits outside your solar generation
- Increasingly restricted for new homes in Victoria
- Works against the Whole-of-Home energy score
All-electric is the forward-looking default, it pairs with solar, uses efficient modern appliances, and lines up with where new-build rules are heading, especially in Victoria. Gas mainly appeals for the cooktop flame and fast hot water. If you love cooking on gas, look at induction before you decide, because many converts do not look back.
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Match me with 3 buildersCommon questions
Should I get ducted or split-system air conditioning?
A split system serves one room or zone, costs less to install and lets you condition only the rooms you use. Ducted reverse-cycle conditions the whole home evenly through ceiling vents at a higher install cost, and works best with zoning. Splits suit smaller homes and staged budgets, ducted suits whole-home comfort in a new build.
Is evaporative or refrigerated cooling better?
Evaporative cooling uses less power and works best in dry heat with windows open, but struggles when it is humid. Refrigerated reverse-cycle works in any conditions, cools to a set temperature and heats in winter too. In much of SA and Victoria refrigerated reverse-cycle is the versatile default.
What is hydronic heating and is it better than ducted?
Hydronic heating circulates warm water through radiators or in-slab pipes for a gentle, quiet, even warmth, and pairs well with a heat pump, but it costs more and responds slowly. Ducted heating blows warm air, heats fast and can share ducting with cooling. Hydronic suits comfort in cooler climates, ducted suits fast flexible heating.
Is an all-electric home better than gas?
For most new builds, all-electric is the stronger setup: it pairs with solar, uses efficient induction and heat pump appliances, avoids a second service charge and lines up with where the rules are heading. Gas mainly holds appeal for cooks who prefer a flame.
Can I still have gas in a new home in Victoria?
Victoria has moved its planning rules toward all-electric for many new homes, so gas is increasingly restricted on new builds. Always check the current requirements for your specific project and council before planning around gas.
Is induction as good as gas for cooking?
Many cooks find induction faster, more precise and easier to clean than gas, and it keeps the kitchen cooler. If you love gas, it is well worth trying induction before deciding, as a lot of people prefer it once they switch.
Does going all-electric help my energy rating?
Generally yes. Efficient electric appliances paired with solar improve your Whole-of-Home score, while gas sits outside your solar and tends to work against it. Your assessor can show the difference for your design.
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Sources last verified June 2026