The short version
- From 1 March 2027, when a gas hot water system in an existing Victorian home reaches the end of its life, it has to be replaced with an efficient electric system, such as a heat pump.
- Gas systems can still be repaired if they break down. The change applies when the system can't be repaired.
- Rental properties have new minimum energy efficiency standards from the same date: a hot water system that reaches end of life must be replaced with an efficient system, such as a heat pump or an electric-boosted solar water heater.
- Exemptions apply in some situations, for example where installation would be impractical or the cost too high, or where there isn't enough space.
- Rebates may be available through Victorian Energy Upgrades and Solar Victoria, if you're eligible.
What this means if you own your home
If your gas hot water system is getting old (10 years or more), it's worth planning now. Replacing it before it fails means you can choose the right heat pump, check rebates and book the install, rather than making a rushed decision with no hot water.
What this means for landlords and property managers
Rental properties have their own standards and exemptions. When a system at a rental reaches end of life, the replacement needs to meet the new standard. We can assess the property, check whether an exemption applies, and quote a compliant replacement.
How we help
- Check whether your current system can be repaired
- Size a heat pump for your household and site
- Check whether you may be eligible for a rebate
- Install, remove the old system and explain how to use the new one
Sources
Victorian Government announcement, 24 June 2025 (premier.vic.gov.au), and Energy Victoria guidance on electric and efficiency standards for buildings. Rules and rebates can change, so always check current official guidance.