MSC Quarterly: Victoria's 2027 All-Electric Building Requirements

From 1 January 2027, Victoria will introduce new electrification requirements, meaning all new residential buildings and most new commercial buildings will be required to operate without a connection to reticulated (mains) gas.

The changes form part of the Victorian Government's Gas Substitution Roadmap, aimed at reducing reliance on fossil gas and supporting the transition towards lower-emission buildings.

What's changing?

For developments captured by the new regulations, traditional gas-powered services will generally need to be replaced with electric alternatives, including:

• Heating and cooling: Electric reverse-cycle air conditioning and heat pump systems.

• Hot water: Electric heat pump or electric storage systems.

• Cooking: Electric or induction cooktops.

• Commercial services: Electric alternatives for relevant commercial heating, hot water and cooking equipment.

Certain exemptions apply, including exclusions for industrial and agricultural buildings.

What about existing buildings?

Existing buildings already connected to mains gas will generally be permitted to retain their connection.

However, separate requirements commencing 1 March 2027 will require gas hot water systems in existing residential buildings to be replaced with electric alternatives when replacement becomes necessary, subject to applicable exemptions.

Are there transitional arrangements?

The new requirements generally apply to building permits issued from 1 January 2027.

Projects with building permits issued before this date may continue under the previous arrangements.

An exemption may also be available where the Relevant Building Surveyor (RBS) certifies that substantial progress was made on the building design before 1 January 2027.

Developers with projects approaching the building permit stage should confirm their position with the RBS.

How does this affect energy efficiency compliance?

Importantly, electrification requirements are separate from NCC energy efficiency compliance.Residential developments must still satisfy applicable 7-star NatHERS and Whole of Home requirements, while commercial developments must continue to demonstrate compliance with the relevant Section J provisions.

An all-electric building does not automatically achieve energy efficiency compliance.

Early consideration of heating and cooling systems, hot water selection, electrical infrastructure and solar PV integration will assist in achieving an efficient and compliant design.

What should the industry do now?

With the commencement date approaching, architects, builders and developers should review upcoming projects to identify proposed gas connections and assess whether design changes are required.

For further information or enquiries, feel free to contact the team at MSC.