Businesses in Australia shift from gas to electric heat pumps
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Businesses in Australia are increasingly replacing gas appliances with electric heat pumps, according to a new report by the Australian Alliance for Energy Productivity (A2EP).
Approximately 80 percent of new large buildings are now constructed to be fully electric, and A2EP anticipates 232 existing buildings will be retrofitted by the end of next year. These changes are occurring in the mechanical rooms of buildings and behind factory doors, largely unnoticed by the public.
The transition is driven by the increasing efficiency of electric heat pumps, up to five times more efficient than gas, and supported by government incentives in states like Victoria and New South Wales. Swimming centres are currently leading the shift, aided by the federal Community Energy Upgrades Fund. Hardwicks Meat Works in Victoria installed a heat pump system connected to solar power and expects to recoup the investment before 2028.
A2EP proposes a $100 million co-investment scheme to convert 100 to 200 aged-care facilities from gas. While the federal government’s new domestic gas reservation legislation aims to lower gas prices, rising network costs, potentially reaching $111,000 annually for some businesses in Victoria, could further accelerate the move to electric solutions, despite some potential for increased gas supply.
