The Victorian government announced the changes as part of its plan to reach net-zero emissions in the state by 2045.
From January 1 next year, new residential properties and government buildings will only be powered by electricity.
Energy Minister Lily D'Ambrosio said the changes would help a new home owner save $1000 in their energy bills.
"We know the cost of living for Victorians is getting bigger and bigger," she told reporters on Friday.
"Doing something about it is exactly what today is about."
There will be changes to Victorian planning provisions and schemes to ensure the changes can come into effect.
About 80 per cent of Victorian homes are connected to gas, with the sector contributing about 17 per cent of the state's emissions.
A new $10 million residential electrification grants program will be established, Ms D'Ambrosio said.
The scheme will be available to volume home builders, developers and others to provide bulk rebates for solar panels, solar hot water and heat pumps to new home buyers.
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