Replacing Gas Hot Water in Victoria: What It Costs Before and After 1 March 2027
From 1 March 2027, Victorian law requires a failed mains gas hot water unit in an existing home to be replaced with an electric one, usually a heat pump, with limited exemptions. Today a like-for-like gas storage replacement costs about $1,200 - $3,500 installed. A heat pump averages $2,276 - $4,370 installed in Victoria after rebates, and costs far less to run.
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Gas storage, like-for-like, installed (no rebate)
Gas continuous flow, installed (no rebate)
Heat pump in Victoria, installed after rebates
Victorian and federal heat pump rebates combined
Gas figures are national installed ranges; the heat pump figure is PumpSwap's modelled Victorian average across 360 suburbs.
Modelled estimate from published prices and rebates, checked . Your quotes may differ. How we model prices
What the Government Modelled
The Victorian Government's 2024 impact statement for the rule modelled a gas storage replacement at $2,033 and a heat pump at $4,175 for an existing house, before rebates. It also allowed about $950 to permanently remove the gas supply if a home goes fully electric. That step is optional: you can keep gas for cooking or heating.
| Gas storage | $2,033 |
| Gas continuous flow | $2,658 |
| Heat pump | $4,175 |
| Solar, electric boosted | $6,204 |
| Solar, gas boosted | $6,939 |
Source: Victorian Government, Building Electrification Regulatory Impact Statement (December 2024), Table C.6. Modelled installed costs, before rebates.
The gap closes once rebates come off. Federal certificates ($500 - $800), the Solar Victoria rebate ($1,000 - $1,400) and Victorian Energy Upgrades discounts ($200 - $630) can stack, and a heat pump runs for around $200 - $400 a year against $800 - $1,200 for gas storage. Check which Victorian rebates you qualify for.
The Rule in Plain Words
From 1 March 2027, a plumber can't install a new mains gas water heater in an existing house or apartment, or replace one with another, unless an exemption applies. Repairs and servicing carry on as normal.
Bottled LPG, gas cooking and gas heating in existing homes aren't covered by the hot water rule. A working gas system doesn't have to be removed.
Including no suitable space for an electric unit, apartments on a shared gas system, heritage or other legal limits, a switchboard or network upgrade being needed, warranty replacements, and gas units that run without mains power.
Separate rental standards from the same date: a failed system that can't be repaired must be replaced with an efficient electric one, such as a heat pump.
Read from Building and Plumbing Amendment Regulations 2025 (S.R. No. 140/2025), Energy Victoria: existing homes, Energy Victoria: rental homes and Engage Victoria: Building Electrification on 13 October 2026. Not legal advice.
Dates, timelines and the full detail are in our guide to Victoria's gas hot water rules.
If Your Gas System Fails Before March 2027
You can still put in another gas unit until 28 February 2027, and it can be repaired after that. But Solar Victoria puts the typical life of a hot water system at 8 to 10 years, and the Victorian Government's 2024 impact statement cites 8 to 14 years for gas units, so a gas unit fitted now will usually reach the end of its life well after the rule starts. When it does, the replacement has to be electric unless an exemption applies.
Most Victorians don't plan for it. In PumpSwap's own quote data, 72% of Victorian heat pump requests came from homes replacing gas, and nearly 3 in 10 of those only started looking once their system had broken down. See the full data.
Frequently Asked Questions
Can I still replace my gas hot water system with gas in Victoria?
Until 28 February 2027, yes. From 1 March 2027, Victorian regulations stop plumbers installing a new mains gas water heater in an existing home or replacing one with another, unless an exemption applies. Repairs to an existing gas unit are still allowed.
How much does it cost to replace gas hot water with a heat pump in Victoria?
PumpSwap's modelled average for Victoria is $2,276 - $4,370 installed after rebates ($3,876 - $5,970 before). Victoria stacks three rebates: the Solar Victoria rebate ($1,000 - $1,400), Victorian Energy Upgrades discounts ($200 - $630) and federal certificates ($500 - $800), up to $2,830 combined if you qualify for all three.
Does the Victorian gas hot water rule apply to LPG?
No. The rule covers mains (reticulated) gas. Bottled LPG systems, gas cooking and gas heating in existing homes are not covered by the hot water rule.
What are the exemptions?
The regulation lists several, including: no suitable space inside or outside for an electric unit; apartments on a shared central gas system; where another law prevents it, such as a heritage control; where the switchboard would need upgrading or the electricity network would need augmenting; replacements under warranty; and gas units that run without mains power. Your plumber confirms whether one applies.
What about rental properties?
Separate minimum standards for rentals also start on 1 March 2027: when a rental hot water system fails and cannot be repaired, it has to be replaced with an efficient electric system such as a heat pump or electric-boosted solar.
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