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Gas Ducted Heating vs Reverse Cycle: Savings Calculator

Replacing ducted gas heating with a reverse cycle system is the single biggest energy-bill win available to Victorian homes — and the biggest rebate. Estimate your annual running cost savings from your own gas bill or home size.

Why the savings are real

Why Reverse Cycle Beats Gas Ducted Heating on Running Costs

A gas ducted heater makes heat by burning fuel — and even a good one loses 10–35% of that energy up the flue. A reverse cycle system doesn't make heat at all: it's a heat pump, moving warmth from outside air into your home. That's how it delivers 3.5–4.5 kilowatts of heat for every kilowatt of electricity it draws — an efficiency of 350–450%, versus 65–90% for gas.

At typical 2026 Victorian prices (around 30c/kWh electricity and 3.2c/MJ gas), that physics gap translates to heat from a modern multi-head or VRF system costing roughly half to a third as much per unit of warmth as a typical gas ducted heater. Stack on the gas supply charge — $300–$400 a year just for the connection — and full electrification compounds the saving.

Then there's the install side: replacing ducted gas heating with reverse cycle is the highest-paying activity under the Victorian Energy Upgrades program — currently up to $5,500+ off the system price. Lower bills every year, and the government covers a chunk of the switch.

Gas vs Reverse Cycle FAQs

Is reverse cycle heating cheaper than gas ducted heating?
Yes, substantially, in almost every Victorian home. A modern reverse cycle system moves heat rather than creating it, delivering 3.5–4.5 kilowatts of heat per kilowatt of electricity (a COP of 3.5–4.5). Gas ducted heaters burn fuel at 65–90% efficiency — meaning every unit of energy delivers less than one unit of heat. At typical 2026 Victorian energy prices, reverse cycle heat costs roughly half to a third as much per unit of warmth.
How much can I save switching from gas ducted heating in Victoria?
Most Victorian households save somewhere between $400 and $1,200+ per year on heating costs, depending on home size, usage and the system installed — and households that disconnect gas entirely save an additional $300–$400 a year in gas supply charges alone. Use the calculator above with your own bill for a personalised figure.
Should I disconnect my gas connection entirely?
If heating was your main gas use, often yes — the daily supply charge runs around $300–$400 a year just for staying connected. Households that also electrify hot water and cooking can abolish the connection completely. Factor in any abolishment fee your distributor charges, which is typically recovered within the first year or two of supply-charge savings.
Does the VEU rebate cover replacing gas ducted heating?
Yes — it's the flagship activity of the Victorian Energy Upgrades program. Replacing ducted gas heating with a multi-head split or ducted reverse cycle system currently attracts the largest residential incentives in the country, up to $5,500+ off the install price (with a $1,000 co-payment on ducted and multi-head systems).
What's the difference between COP and star ratings?
COP (coefficient of performance) is the ratio of heat delivered to electricity consumed — a COP of 4 means 4kW of heat per 1kW of power. Star ratings are the consumer-friendly label built on that efficiency data for your climate zone. Higher stars mean higher real-world COP, lower running costs, and under the rebate schemes, a bigger upfront discount.

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