The City of Sydney will require all new residential buildings to be fully electric from 1 January 2026, with similar rules for large commercial buildings and hotels in 2027.
Under the first stage, electric cooktops, ovens and space heating must be used in all new residential builds.
A second proposal, now open for consultation, would extend this to outdoor appliances and to new commercial buildings over 1,000 square metres and hotels with more than 100 rooms.
“Relying on fossil fuel gas is bad for the planet, bad for our finances and bad for our health. Ensuring all-electric buildings into the future is simply a logical next step to take,” said Lord Mayor of Sydney Clover Moore AO.
These planning changes support the NSW Government’s Sustainability State Environmental Planning Policy and aim to deliver healthier, more energy-efficient buildings that do not need expensive upgrades down the track.
The City worked with community groups, industry and peak bodies when shaping the proposals.
Industrial uses and existing buildings will not be affected. In mixed-use developments, food and beverage venues can still use gas for now, as long as they allow for future conversion to electric.
Clean energy group Solar Citizens praised the move. CEO Heidi Lee Douglas said Sydney joins other councils including Parramatta, Lane Cove, Newcastle and Waverley in adopting mandatory electrification.
“The households with the cheapest energy and fuel bills are the homes with solar on the roof, a battery behind the meter, an electric vehicle on the driveway, and efficient all-electric appliances,” Douglas said.
She noted that while the electricity grid is heading towards 82 per cent renewables, the gas network is only likely to reach 10 per cent and will become more costly.
Using electric appliances powered by rooftop solar cuts emissions and avoids locking residents into expensive fossil fuels.
New electric homes in Sydney could save around $626 a year on energy bills. Electric systems are also cleaner inside the home, with induction cooktops helping to avoid air pollution.
Douglas criticised the NSW Government for not requiring clean energy features in new buildings. She said that the 2024 Net Zero Commission report shows the built environment is still falling short on cutting emissions, despite available technology.
Public submissions on the second stage of Sydney’s electrification policy can be made between 30 June and 28 July 2025. More details are accessible here.