Did you know that switching heating and hot water systems from gas to electric can save hundreds of dollars a year?

A report published by Environment Victoria this week showed households in the state can save up to 75 per cent on their energy bills this winter – or $547 – by moving to electric heating and hot water systems amid skyrocketing gas prices across the country.

This echoes earlier Grattan Institute research that found families in other states could save hundreds a year on their utility bills by switching to electricity, particularly if a household has solar panels.

Sarah Rogan, Environment Victoria’s climate campaign manager, said those who make the switch will save, notwithstanding the “quite significant” upfront costs of going electric.

“It’s definitely more cost effective in the long run to be using efficient electric appliances,” Ms Rogan said.

“We know reverse cycle air conditioning used for heating is a much better alternative for our health and the climate.”

Amid warnings that Australia will be unable to meet its emissions reductions targets without households switching off gas, some councils have started to ban gas connections in new homes, foreshadowing a wider shift in the way people heat and cook.

But the key barrier to going electric that households face, particularly lower income families and renters, are the upfront costs of installing systems – which can cost thousands.

Luckily there is some, albeit limited, government assistance available across states and territories.

Here’s what you should consider before moving your home off gas and onto electric systems.

Getting off gas – Heating

Tim Forcey, a home energy advisor who specialises in helping households switch off gas, says families looking to install electric appliances should start with heating – which is the biggest gas guzzler.

Mr Forcey has consulted with thousands of home owners about making the switch from gas, having started a Facebook group eight years ago, My Efficient Electric Home, that now has almost 100,000 people asking questions and swapping tips for moving to cheaper electric systems.

One common tip is that many people already have electric reverse cycle air conditioning that can be used for heat rather than gas systems.

“You can heat a house for a third of the cost with your air conditioner instead of gas,” Mr Forcey said.

“Most units these days are reverse cycle, people put them in for summer cooling but they’re in the habit of turning the gas on all the time during winter.”

If you don’t already have a reverse cycle AC unit, it might be time to consider getting one.

Start with a main living room, Mr Forcey suggested, saying that while central heating seems like a non-negotiable it can be a big waste because you end up heating rooms you aren’t using a lot.

A solid split-system AC can cost as little as $600, though those on a budget may want to consider a portable option that can be cheaper but is also likely to be far less energy efficient.

Those with more money to splash can invest more in a split AC system, with pricier models going upwards of $5000, according to product comparison company Choice.

Hot water

The second-biggest gas appliance in most households is the hot water system. Switching this out to electric can save hundreds of dollars a year, depending on use, Ms Rogan said.

But there are some things to consider before taking the plunge, including how big the system needs to be, the price you’re willing to pay and whether you have solar panels on your house.

Mr Forcey said those with solar panels can hook them up to their hot water system so it can be used as a pseudo battery – storing hot water for up to 24 hours before you need to use it.

“You could spend as little as $700 if you’re eligible for government rebates,” he said.

“Or, if you’re eligible for no rebates and you want the biggest and fanciest system you could spend $5000.”

It’s important to think about the trade-off between cost and energy efficiency before buying a hot water system – check the star rating on energyratings.com.au first and then compare it to price.

Systems that come with a higher upfront cost are likely to be more efficient, generating higher savings over the longer term, so it might be worth thinking about it as an investment.

“Noise is another big thing to consider,” Mr Forcey said. “The more expensive ones will be a bit quieter.

“Go for better than the bargain basement.”

Government help

The costs of installing electric systems can seem daunting, and data suggests they are more expensive than gas options for many households.

Luckily, government assistance is available for many households, mainly those in Victoria and Canberra, where governments have both rebate and loan schemes to help home owners.

The ACT government offers rebates of up to $5000 for electric appliances, while $15,000 can be claimed as a zero interest loan for sustainable household developments.

Similarly, Victoria will provide up to $1000 for installing a heat pump for an electric hot water system.

Victorians can also claim $1000 for reverse cycle air conditioning units under a change that began in May.

Unfortunately there’s much less, if any, support available for households in other states and territories.

The federal government has recently introduced a $1 billion low interest loan program to help households electrify – but this program is still being designed and isn’t available yet.