Going all-electric in Perth: how to replace gas appliances and why it saves money

The case for going fully electric in Perth has shifted significantly in the past five years. Gas prices have risen. Heat pump technology has improved and prices have fallen. Synergy's Midday Saver tariff makes daytime electricity cheap. Solar makes it cheaper still.

Many Perth households could disconnect gas entirely, cut their annual energy bills by $800–$1,500, and run a more carbon-efficient home.

Here's how to do it in the right order.

Why gas disconnection saves money

The part most people miss: the gas supply charge is $1.20–$1.40/day depending on your retailer (approximately $440–$510/year). You pay this regardless of how much gas you use. If you're a small household using gas only for cooking, you may be paying $500/year just to maintain the connection — plus the actual gas usage on top.

Eliminating gas connection removes:

• The fixed supply charge (~$440–$510/year)
• The gas usage charges for hot water, heating, and cooking

And adds:

• Higher electricity consumption (though heat pumps use 3–5× less energy than gas for the same output)
• Potentially lower overall energy costs, particularly with solar

The maths favour full electrification for most Perth households. The question is sequence and timing.

Step 1 — Hot water (biggest ROI)

Replace: Gas storage or gas instantaneous hot water → heat pump hot water

Cost to replace: $2,500–$4,500 installed (Reclaim Energy, Sanden, Rheem or Apricus heat pump)

Running cost comparison:

• Gas instantaneous (Rinnai 26L, 5-star): ~$400–$600/year at current Kleenheat market rates
• Resistive electric (off-peak): ~$500–$700/year at off-peak rates
• Heat pump (timed 10am–2pm on solar or Midday Saver 8.85c): ~$100–$180/year

Annual saving vs gas: $300–$500/year Payback: 5–10 years before removing the gas supply charge; much faster once gas connection is removed

Why first: Hot water is the highest-consumption gas appliance in most Perth homes. Converting it creates the largest immediate bill impact and the best individual ROI. Also required before disconnecting gas if hot water was your only gas appliance.

Step 2 — Cooking (easiest switch)

Replace: Gas cooktop → induction cooktop

Cost to replace: $400–$1,500 for the cooktop (DIY replacement if wiring exists); add $150–$300 if an electrician needs to run a 15A or 20A circuit to the kitchen.

Running cost comparison:

• Gas cooking (4-burner, typical Perth household): ~$150–$300/year in gas usage for cooking
• Induction: ~$60–$120/year at A1 rates (induction is 90% efficient vs gas at 40%)
• Induction on solar (10am–2pm cooking): near-zero cost for solar households

Annual saving vs gas cooking: $90–$200/year from energy alone; plus share of supply charge removal once fully disconnected.

Why second: Lowest capital cost switch. Induction cooktops have improved dramatically — precise temperature control, faster boil than gas, no open flame, easy to clean. The main adjustment is cookware compatibility (induction requires magnetic-base pans — check by seeing if a fridge magnet sticks to the base).

If you have a gas oven: The oven uses far less gas than the cooktop. A standalone induction cooktop + electric oven is the usual combination; replacing a freestanding gas cooker/oven combo with an induction cooktop + separate electric oven is more work but worthwhile if the appliances are near end of life anyway.

Step 3 — Space heating (if applicable)

Replace: Gas ducted heating or gas wall furnace → reverse-cycle split system or ducted reverse-cycle

Cost to replace: $1,500–$4,000 per split system; $8,000–$20,000 for full ducted reverse-cycle replacement

Running cost comparison:

• Gas ducted heating (large home, June–August): $400–$800/year in gas usage
• Reverse-cycle AC (COP 3.5): $100–$200/year at current electricity rates
• Reverse-cycle on Midday Saver (pre-heating 10am–2pm at 8.85c): even lower

Annual saving vs gas heating: $200–$600/year depending on usage

Why third: Higher capital cost for whole-home ducted replacement. If you have an existing reverse-cycle AC for cooling, it almost certainly also heats — check whether it's been set to heating mode. Many Perth households with gas heating also have reverse-cycle AC installed for cooling, and simply haven't realised they can use it for heating too.

Disconnecting gas: the process

Once all gas appliances are replaced:

1. Contact your gas retailer (Kleenheat, Alinta, etc.) to request disconnection
2. The retailer arranges for ATCO (the gas network) to physically disconnect and cap the service
3. Disconnection typically takes 2–4 weeks to arrange
4. You receive a final gas bill; your supply charge stops immediately on disconnection
5. No reconnection fee if you want gas back (you'd pay for a new connection like any new property)

There's no obligation to disconnect the pipe from the property boundary — just from the meter. Future owners could reconnect if they chose to.

Total electrification savings for a typical Perth household

| Change | Annual saving | Capital cost | Payback | |---|---|---|---| | Gas supply charge (on disconnection) | $440–$510/year | — | Immediate | | Heat pump hot water (vs gas) | $300–$500/year | $2,500–$4,500 | 5–10yr | | Induction cooking (vs gas) | $90–$200/year | $400–$1,500 | 2–8yr | | Reverse-cycle heating (vs gas) | $200–$600/year | $1,500–$4,000 | 3–10yr | | Total electrification | $1,030–$1,810/year | $4,400–$10,000 | 3–8yr |

With solar: heat pump hot water timed during solar hours cuts its running cost to near zero; induction cooking during solar hours does the same. The paybacks compress significantly with solar.

What you don't need to replace

Gas hot water system that's still within its lifespan: Don't replace a 3-year-old gas system just to electrify. Replace at natural end-of-life (typically 10–15 years for storage, 15–20 for instantaneous). In the meantime, the financial case remains intact for the long term.

Gas fireplace (decorative): A gas fireplace used rarely for ambience uses negligible gas. It's unlikely to justify the cost of removal and replacement on economic grounds. Many Perth households keep a gas fireplace connected for this reason even after eliminating all other gas use — though they retain the supply charge.

Running costs are indicative based on mid-2026 gas and electricity rates in Perth. Actual savings depend on household usage patterns, system efficiency ratings, and solar generation. Appliance replacement costs are installed price ranges — obtain quotes from licensed plumbers and electricians for your specific situation.