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Best Energy Upgrades for Victoria Homes in 2026

Based on a typical 3-bedroom home in Victoria · Updated October 2026

Victoria has the highest gas consumption per home of any state, driven by cold winters and a historically gas-heavy appliance stock. The Victorian Energy Upgrades (VEEC) scheme dramatically reduces upfront costs for heat pumps and draught sealing, making gas-to-electric switching one of the strongest financial moves available -- often second only to solar.

What we modelled: how we calculated these results

3-bedroom home, ~18 years old
State: VIC
Electricity: 29c/kWh
Feed-in tariff: 3.3c/kWh
Gas: 3.8c/MJ
Gas usage: ~52,586 MJ/year
Electricity usage: ~2,672 kWh/year
Analysis period: 15 years

Recommended upgrade sequence

These upgrades are ordered for maximum return. Each step accounts for the energy changes made by previous steps.

1

Electric Vehicle

Pays for itself in 4 years, then saves ~$1,821/year.

$7,702
Profit
Net cost
$9,000
Payback
4 yrs
15yr savings
$26,988
2

Solar + Battery

Pays for itself in 7.9 years, then saves ~$1,564/year.

$1,221
Profit
Net cost
$12,131
Payback
7.9 yrs
15yr savings
$23,613
3

Reverse Cycle Heating

Pays for itself in 3.1 years, then saves ~$1,385/year.

$15,539
Profit
Net cost
$4,470
Payback
3.1 yrs
15yr savings
$27,829
4

Heat Pump Hot Water (gas switch)

Pays for itself in 7.2 years, then saves ~$410/year.

$3,388
Profit
Net cost
$3,355
Payback
7.2 yrs
15yr savings
$8,239
5

Induction Cooktop

Pays for itself in 6 years, then saves ~$97/year.

$2,467
Profit
Net cost
$2,660
Payback
6 yrs
15yr savings
$8,020

Portfolio summary

$31,616
Total investment
$94,688
Total savings (15yr)
$30,317
Net profit

Below market returns at this time horizon

These upgrades still save money on energy bills, but the return doesn't beat the 8% stock market benchmark over 15 years. They may become worthwhile with a longer holding period.

Battery (add-on)
Below benchmark by $1,293
Insulation
Below benchmark by $958
Draught Sealing
Below benchmark by $1,089

Frequently asked questions about Victoria energy upgrades

What is the best energy upgrade for a Victoria home?▾
For a typical 3-bedroom home in Victoria, Electric Vehicle is the highest-return upgrade with a net profit of $7,702 over 15 years and a payback period of 4 years.
How much can I save on energy bills in Victoria?▾
By following the full recommended upgrade sequence, a typical Victoria home could save $94,688 over 15 years, with a total investment of $31,616 and a net profit of $30,317.
What electricity rate does Victoria pay in 2026?▾
We modelled Victoria homes at 29c/kWh with a feed-in tariff of 3.3c/kWh, based on current VIC retail rates. You can adjust these in the calculator to match your actual plan.
What order should I install energy upgrades in Victoria?▾
The optimal sequence is: 1. Electric Vehicle, 2. Solar + Battery, 3. Reverse Cycle Heating, 4. Heat Pump Hot Water (gas switch), 5. Induction Cooktop. Each step is calculated after accounting for the energy changes from previous upgrades, so the order matters.

See what the calculator recommends for your home

These results are for a typical home. Your savings depend on your actual energy usage, roof orientation, and appliance ages.

Run the calculator for your home

Examples for other states

New South WalesQueenslandSouth AustraliaWestern AustraliaTasmaniaAustralian Capital Territory

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Solar Panels in Australia: Cost and Savings in 2026Should You Just Ditch Gas Entirely? A State-by-State LookHeat Pump vs Gas Hot Water in Australia: 2026 Numbers