New Victorian homes will be banned from being connected to gas from 2024.
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The Victorian Government announced the phasing out of gas in a bid to slash energy bills and reduce household emissions.
The state has the highest use of residential gas in the country with about 80 per cent of homes connected.
From January 1, 2024, planning permits for new homes and residential subdivisions will only connect to all-electric networks.
It's expected to save households about $1000 each year on energy bills.
And all new public buildings that are yet to reach design stage will also be all-electric, including schools, businesses, police stations and other government-owned buildings.
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The move to electric is part of reaching Victoria's emissions reduction targets of 75 to 80 per cent by 2035 and net zero by 2045.
Victorian Energy Minister Lily D'Ambrosio announced a $10 million investment in a new grants program for rebates on solar panels, solar hot water and heat pumps to new home buyers.
"We know that with every bill that arrives, gas is only going to get more expensive. That's why we're stepping in to help even more Victorians get the best deal on their energy bills," she said.
The ACT government passed a law in June to ban new gas network connections as part of the 2045 goal to become an all-electric city.
On July 27 it also launched a new pilot program to help hospitality businesses transition to all-electric cooking with a 50 per cent rebate.
Ban welcomed by health, climate groups
The Royal College of General Practitioners has welcomed the Victorian Government's move as one of 30 signatories to a letter sent to the Ms D'Ambrosio calling for action.
"Gas stoves expose people to respiratory irritants which leads to a multitude of respiratory conditions, and research indicates this includes triggering asthma in children," RACGP co-deputy chair Dr Aadhil Aziz said.
"Phasing out gas in our homes is the right choice for our health and the climate."
The Climate Council said it was a "major stride towards clean, safe and affordable homes for all Victorians.
"This is great news for the environment and the health of Victorians," Climate Councillor Dr Kate Charlesworth said.
"Gas is an invisible harm in our homes, schools and workplaces," she said.
"The dangers it poses, especially to our children and vulnerable households, cannot be completely eliminated, even with better ventilation.
"We have a responsibility to sound the alarm on gas, just as we did with asbestos and tobacco."
Energy Efficiency Council chief executive Luke Menzel said energy bill savings could be used to slash two years off an average 25-year mortgage in Melbourne.
"Given the upfront costs of building an all-electric home are comparable to building a home with a gas connection, that makes going all-electric a no brainer," he said.
And electric stoves aren't what they used to be, he said.
"Induction cooktops are high quality, lightning fast and great to cook with. Getting gas out of our kitchens is the healthy option for families, with evidence linking gas cooktops to respiratory conditions like asthma."
