What is your ducted gas heating costing you to run?

Gas heating costs explained

How Much Does Ducted Gas Heating Cost to Run in Victoria?

Gas heating is billed by the megajoule (MJ) of gas you burn, and a ducted, whole-of-home system burns a lot of it. A typical ducted gas heater draws somewhere between 80 and 140 MJ an hour at full output, so at a usage rate of a few cents per MJ, an evening of heating adds up quickly — and across a Victorian winter it becomes one of the largest items on the energy bill. Victorian households typically spend around a third of their energy costs on heating alone.

The figure that drives the cost is the gas input rate on the heater's compliance plate, in MJ per hour, combined with your gas usage rate in cents per MJ (both are on your bill). The calculator above uses a typical input for the system size you choose, applies a real-world allowance for the heater cycling on and off, and turns it into a weekly, monthly and full-winter estimate.

Gas prices have climbed in recent years, so the same heater costs more to run than it did a few winters ago — which is why more Victorian households are asking whether ducted gas is still worth it, and what reverse cycle would cost instead.

Why Reverse Cycle Is So Much Cheaper to Run

A gas heater can only ever deliver a little less heat than the energy it burns. A reverse cycle air conditioner works differently: instead of burning fuel, it moves heat from the outside air into your home, delivering roughly three to five units of heat for every unit of electricity it uses. That efficiency, combined with where gas and electricity prices now sit, means heating with reverse cycle generally costs around two to three times less than running ducted gas for the same warmth.

It is why the long-standing assumption that “gas is cheaper” no longer holds for most Victorian homes, and why so many people weighing up whether to switch from gas to reverse cycle find running cost is the clincher. You can compare the two side by side with our gas vs reverse cycle savings calculator, or check what your existing air conditioner already costs with the running cost calculator.

Is Gas Heating Being Phased Out in Victoria?

Not for existing homes — at least not your heater. If you own your home you can keep your ducted gas heating, repair it, and even replace it with gas if you really want to; there is no mandate to switch. The changes that are locked in are narrower than the headlines suggest: from January 2027 all new homes must be built all-electric with no gas connection, and from March 2027 a gas hot water system in an existing home must be replaced with electric once it reaches end of life. Gas heating and cooking in existing owner-occupied homes are untouched.

Rentals are the exception worth knowing about: from March 2027, when a gas heater in a rental reaches end of life it must be replaced with an efficient reverse cycle system. So if you're a landlord, making the switch ahead of that deadline — while the rebate is generous — can make sense.

The bigger picture is the direction of travel: Victoria is steering households towards electric and reserving gas for industry, gas prices have been climbing, and the upfront rebate is at its most generous now. None of that forces your hand — but for many homeowners it turns replacing an ageing, expensive gas heater into an easy decision rather than a reluctant one.

The Victorian Rebate That Covers the Switch

Replacing ducted gas heating with an efficient reverse cycle system is exactly what the Victorian Energy Upgrades (VEU) program is designed to encourage. The discount is applied straight off your installation price — there is no claim form and no waiting for a cashback.

According to the Victorian Government, removing or replacing a ducted (whole-of-home) gas heater with an efficient reverse cycle air conditioner can attract up to $5,530 off, with energy bill savings of up to $1,140 a year. The conditions are straightforward: all Victorian households and businesses are eligible (including private rentals, with landlord agreement), the system being replaced must be more than two years old, and the work must be done by an accredited provider using approved equipment. A minimum customer contribution applies to ducted upgrades.

Exact discounts depend on the system installed and the certificate market price at the time, so they are best confirmed on a written quote. See the Victorian rebate overview for more detail.

Common Questions

How much does ducted gas heating cost to run?

It depends on the size of the system, how long you run it and your gas rate, but for an average Victorian home running ducted gas through winter it commonly runs into several hundred dollars a season — often more in a cold year. The calculator above gives an indicative figure for your usage.

Is ducted gas heating expensive to run?

For most Victorian homes, yes — ducted gas is one of the larger items on the winter bill, and rising gas prices have made it more expensive than it used to be. Reverse cycle generally costs around two to three times less for the same heating.

Is reverse cycle really cheaper than gas?

For most Victorian homes in 2026, yes. Because a heat pump delivers several units of heat per unit of electricity, running reverse cycle is generally around two to three times cheaper than ducted gas for the same heating.

How much is the Victorian gas heater rebate?

Removing or replacing a ducted gas heater with an efficient reverse cycle system can attract up to $5,530 off under the VEU program, applied upfront. The exact amount depends on the system and certificate prices.

Who is eligible?

All Victorian households and businesses, including private rentals (with landlord agreement). The system being replaced must be more than two years old, and the install must be carried out by an accredited provider using approved equipment.

Is gas heating being banned in Victoria?

No — existing homeowners can keep and repair gas heating. From 2027 new homes must be built all-electric, gas hot water in existing homes must be replaced with electric at end of life, and rental gas heaters must be replaced with reverse cycle at end of life. Existing owner-occupied gas heating and cooking are not affected.

Should I switch from gas to reverse cycle?

It usually comes down to running cost and the rebate. Reverse cycle is cheaper to run for the same heating and cools in summer too, and the VEU discount can cover much of the changeover — the calculator above gives you the numbers for your home.

Do I have to disconnect from gas completely?

No — the rebate is for the heating upgrade. Many households do choose to reduce or remove gas over time to save on supply charges, but that is a separate decision.