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Market, policy and timing

How do new-home gas bans and electrification policy affect installers?

Short answer

Restrictions on gas connections for new homes, notably in Victoria and the ACT, mean more all-electric builds that need heat pump hot water, induction cooking and solar. That adds hot water STCs and VEECs to the work installers can do, though rules vary by state and change.

Written and checked by the Energy Merchants desk · Reviewed 3 October 2026 · For installers

Gas rules for new homes are state matters, and they are shifting. For installers the practical question is not politics but pipeline: how many all-electric homes need hot water, heating, solar and storage, and which incentives apply to each.

What the rules look like

Victoria stopped new residential planning permits from allowing gas connections from 1 January 2024, so new homes in permit-controlled developments go all-electric. The ACT has been phasing out new gas network connections. Other states have not introduced a general ban at the time of writing, and some have rolled back proposals. Treat any summary as a snapshot and check the relevant state department.

What all-electric homes need

  • Hot water. Heat pump hot water systems are the default for new all-electric homes. Eligible models earn STCs, with the count varying by model and zone: see heat pump STCs by zone.
  • Solar. Rooftop solar pairs with electric loads. The deeming period is 5 years for 2026 installs and 4 for 2027, so the discount shrinks each year.
  • Batteries. With more evening electric load, batteries make sense, and the Cheaper Home Batteries Program applies to new or existing solar.
  • State certificates. Victoria’s VEU creates VEECs for some activities, and NSW has the Energy Savings Scheme and PDRS. New buildings are treated differently by activity. See heat pump VEECs in Victoria and heat pumps in new builds.

The installation-type trap

The STC claim distinguishes new, replacement and additional installations, and the evidence differs. A heat pump in a new build is not replacing a gas unit. Our installation type guide sets out how to record each one, and the hot water and heat pump checklist lists the evidence.

From the desk: in new builds the builder may own the paperwork and the homeowner has not yet moved in. Get the assignment form signed by the person who owns the system at installation, and make sure the address and installation date line up.

What this means for installers

Plumbers and electricians who add heat pump and solar to their offer can capture more of each new build. Treat certificate income as a cash-flow item, and use a trader with a quick settlement process so the extra work does not stretch your terms. Check which scheme applies per state, keep photos for every job, and sell the combined package with accurate numbers. See hot water STCs, VEEC trading, pricing and how it works. For policy context, read home electrification policy in 2026.

Follow-up questions

People also ask

Is there a national gas ban for new homes?
No. Rules are set by states and territories. Victoria and the ACT have restricted new gas connections, while other states have not banned them. Check current rules.
Do new-build heat pumps earn STCs?
Yes, a new installation can earn STCs for an eligible model, though installation type matters for the claim. See the installation-type resource.
Do VEECs and ESCs apply to new builds?
Scheme rules for new builds differ from replacements, and some activities exclude new buildings. Check the activity definition.

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