Environmental groups are calling on the Federal Government to help fund the rewiring of thousands of Australian homes to move them away from gas.

Rewiring Australia says $2.5 billion is needed over five years to change 500,000 homes.

It says changing from gas to electricity will slash average household energy bills by between $3000 and $5000 a year.

Rewiring Australia executive director Dan Cass says household electrification is sound economic policy and vital climate policy.

But Tas Gas chief executive Phaedra Deckart warns even with funding it’s a big ask.

She says most households will struggle to afford to do it on their own as it could cost between $5,000 and $15,000 to remove gas appliances and replace them with electrical ones.

Rewiring Australia says the funding would provide concessional loans to electrify households and businesses.

“There are a whole basket of technologies that, like solar, are worth investing in because they have a return on investment that is positive,” Cass says.