Some Canberrans will be eligible for a government rebate of up to $5000 to replace their gas heater with a more efficient electric model.
The rebate will be part of an expanded energy efficiency scheme by the territory government that aims to cut power bills and emissions.
Climate Change Minister Shane Rattenbury on Thursday announced a suite of new measures for the scheme, which will see an extra 400 low-income households benefit from energy efficiency measures, as well as insulation offered to eligible homes.
More than 74,000 households and businesses in the ACT have been part of the scheme since it was set up six years ago, saving a combined $400 million.
Mr Rattenbury said the rebates offered to homes would help Canberrans cut their power bills and carbon footprint.
"As the ACT moves to achieve 100 per cent renewable electricity by 2020 and zero net emissions by 2045 at the latest, the government is also making the important transition away from gas," Mr Rattenbury said.
"The program will be expanded to incentivise a transition from natural gas to efficient electric heating and hot water systems."
So far, 19,000 low-income households have been supported by the scheme. It was announced this year that the scheme would be extended to 2030, beyond the initial 2020 shut-off date.
Mr Rattenbury said emissions from transport would also be looked at as part of the expansion.
"The scheme will also be extended to enable the government to explore innovative initiatives in the transport sector in the future, such as incentives for zero-emissions vehicles," Mr Rattenbury said.
An estimated 55 per cent of Canberra households with inadequate ceiling insulation will also be targeted.
Residential insulation will be offered to homes while business heating and cooling will be introduced as part of the scheme.