Running Costs Compared for Melbourne (2026)

With energy prices rising across Melbourne, choosing the right heating system in 2026 is no longer just about comfort — it’s about long-term running costs and efficiency.

Two of the most common options homeowners compare are:

• Gas ducted heating
• Reverse cycle (electric) heating

So which one is actually cheaper to run in Melbourne homes?

Let’s break it down with real data and facts.

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🔍 How Each System Works

Gas Ducted Heating

Gas ducted systems burn natural gas to generate heat, which is then distributed through ducts across the home.

• Whole-home heating
• Fast warm-up time
• Relies on gas supply

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Reverse Cycle Heating

Reverse cycle systems use heat pump technology to extract heat from the air and transfer it indoors.

• Uses electricity (not gas)
• Can both heat and cool
• Works with split systems or ducted systems

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⚡ Running Cost Comparison (Melbourne 2026)

Annual Heating Cost (Typical Home)

• Gas ducted heating: ~$1,500 – $2,200 per year
• Reverse cycle heating: ~$400 – $900 per year

👉 That’s a potential saving of $800–$1,300 per year

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Independent Government-Based Estimates

From Victorian energy data:

• Gas ducted (4-star): ~$1,754/year
• Reverse cycle ducted: ~$721/year

👉 Reverse cycle systems can cost less than half to run

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⚙️ Energy Efficiency Difference

This is where the biggest cost difference comes from:

• Gas heating efficiency: ~80–95%
• Reverse cycle efficiency: 300–500%

👉 Reverse cycle systems produce 3–5 units of heat for every 1 unit of electricity used

That’s why they consume far less energy for the same comfort.

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💰 Hourly Running Cost Comparison

• Reverse cycle: ~$1.00 – $1.50 per hour
• Gas ducted: ~$1.70 – $2.50 per hour

👉 Over a full Melbourne winter, this adds up significantly.

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📉 Why Gas Is Becoming More Expensive

Several factors are pushing gas costs higher in Victoria:

• Rising gas prices across Australia
• Daily supply/connection charges
• Lower efficiency compared to modern electric systems

👉 Even efficient gas systems still burn fuel — reverse cycle systems don’t.

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🌞 Additional Savings with Reverse Cycle

1. Works with Solar

Reverse cycle systems can run on solar power, reducing costs even further.

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2. Heating + Cooling in One System

Gas systems only heat.

Reverse cycle systems:

• Heat in winter
• Cool in summer

👉 Eliminates need for separate air conditioning

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3. Zoning & Smart Control

You can heat only the rooms you use — reducing energy waste.

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🏡 Real-World Savings in Melbourne

Studies show switching from gas to reverse cycle can deliver:

• Hundreds to over $1,000/year savings
• Lower energy consumption
• Reduced household emissions

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⚖️ When Gas Might Still Make Sense

Gas ducted heating may still suit:

• Homes with existing ductwork (lower upfront switch cost)
• Very large homes using whole-home heating constantly
• Properties without electrical upgrade capacity

👉 But even in these cases, long-term costs are usually higher.

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🔮 2026 & Beyond: The Shift Away from Gas

Victoria is moving toward electrification:

• Gas heating is gradually being phased down
• Energy policies favour electric systems
• Rebates support switching to reverse cycle systems

👉 Choosing reverse cycle today helps future-proof your home.

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🧠 Final Verdict: Which Is Cheaper?

✔ Reverse Cycle Heating Wins on Running Costs

• Lower annual energy bills
• Higher efficiency
• Dual heating & cooling
• Solar compatibility

❌ Gas Ducted Heating

• Higher ongoing costs
• No cooling capability
• Less efficient overall

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🛠️ How Victorian Air Conditioning Solutions Can Help

At Victorian Air Conditioning Solutions, we help Melbourne homeowners:

• Replace gas systems with energy-efficient reverse cycle systems
• Maximise available rebates
• Get professional installation tailored to your home

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📞 Get Expert Advice

Thinking of switching from gas to reverse cycle?

📞 1300 001 392
✉ info@victorianairconditioningsolutions.com.au

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In Melbourne’s climate and energy market in 2026,
reverse cycle heating isn’t just an upgrade — it’s a smarter financial decision.

Lower bills. Better comfort. Future-ready living.