Victorian households could cut home energy bills by up to $2200 a year by going electric

RACV is encouraging Victorians to take control of their energy bills by switching to electric home solutions, with new data showing households could save up to $2,200 a year.

The RACV Home Electrification Calculator demonstrates the significant savings available, with the average Victorian household able to reduce energy costs by as much as $2,200 annually by transitioning away from gas and upgrading to efficient electric alternatives.

The online tool allows customers to estimate potential savings, explore tailored electrification options, and take practical next steps towards a more efficient home.

This could start by simply swapping to a heat pump hot water system which, based on data collected by the calculator, could save households up to $511 a year and reduce their annual bill by 13 per cent or change to a reverse cycle heating and cooling option to save up to $627 a year and cut bills by 15 per cent*.

RACV Trades CEO Garry Mulvay said electrifying the home is one of the most effective ways for households to manage rising energy costs while improving comfort and efficiency.

“Electrification is no longer a future concept - it's a practical solution available right now for Victorian households,” Mr Mulvay said.

“Through RACV’s electrification services and tools, we’re making it simpler for our members and customers to understand their options, estimate savings and take action with confidence.

“The RACV Home Electrification Calculator provides an easy, low-pressure entry point for households, offering an instant estimate based on individual home characteristics and usage.”

Customers can then move through the electrification journey at their own pace, from requesting a detailed quote to booking an in-home assessment and ultimately installing new systems.

RACV’s electrification offering covers a wide range of solutions, including electric hot water heat pumps, induction cooktops, electric heating and cooling, EV chargers, solar systems and batteries.

Mr Mulvay added that RACV is uniquely positioned to support Victorians across the entire electrification journey.

“Whether it’s a single upgrade or a whole-of-home transformation, RACV provides trusted advice, tailored solutions and end-to-end support – from assessment through to installation,” he said.

The electrification calculator is part of RACV’s broader commitment to helping households navigate the transition to cleaner, more efficient energy solutions. The initiative builds on industry insights and customer trials, creating a scalable and integrated experience under the RACV brand.

By simplifying what can be a complex process, RACV aims to empower more Victorians to make informed decisions about their homes, reduce emissions and save on energy costs.

For more information or to try the calculator, visit RACV’s Home Electrification page.

*The data and information provided is sourced directly from more than 1000 users of the RACV Electrification Calculator. Individual savings are indicative only and dependent on a number of variables impacting energy generation and usage.