Introduction

Many Victorian homes were built with gas ducted heating as the default winter solution. It was cheap to run, it was reliable, and for decades it was simply what most builders installed. But in 2025, the picture has changed dramatically.

Gas prices in Victoria have increased by over 40% in the past five years. Meanwhile, reverse cycle air conditioning technology has become dramatically more efficient — and the VEU program now offers substantial rebates to households willing to make the switch. At Victorian Air Conditioning Solutions, we help homeowners across Melbourne, Ballarat, Bendigo and the Mornington Peninsula assess whether switching makes financial sense.

Here is a comprehensive comparison to help you decide.

How Gas Ducted Heating Works

Gas ducted heating draws natural gas to a central furnace unit, which heats air and distributes it throughout the home via ductwork. It is effective at warming an entire house quickly and has historically been relatively affordable to operate in Victoria.

However, gas ducted systems only heat — they cannot cool. This means most Victorian homes with gas ducted heating also require a separate cooling solution, doubling the appliance footprint and the maintenance overhead.

How Reverse Cycle Air Conditioning Works

A reverse cycle air conditioning system uses a refrigerant cycle to move heat rather than generate it. In winter it extracts heat from outdoor air (even in cold weather) and transfers it inside. In summer, the process reverses to cool your home. This makes it both a heater and a cooler — one system for all seasons.

Modern reverse cycle systems, particularly inverter models, are exceptionally energy efficient. A quality unit can deliver 3 to 5 units of heating energy for every 1 unit of electricity it consumes, measured as a COP (Coefficient of Performance) of 3–5.

Running Cost Comparison in Victoria (2025)

Based on current Victorian energy prices and typical household usage, here is how the two systems compare for whole-home heating over a full winter:

System	Gas Ducted Heating
Annual Heating Cost (3-bed home)	~$1,200 – $1,800
Cooling Capability	None (separate system needed)
Maintenance	Annual service required
Carbon Emissions	High (natural gas)

 

System	Reverse Cycle Ducted (Electric)
Annual Heating Cost (3-bed home)	~$700 – $1,200
Cooling Capability	Yes — full cooling included
Maintenance	Annual filter clean + service
Carbon Emissions	Lower (especially with solar)

VEU Rebates for Switching From Gas to Reverse Cycle

This is where switching becomes even more compelling. Under Victoria’s VEU program, replacing a gas ducted heating system with a reverse-cycle ducted air conditioner is one of the highest-rebate upgrade categories available.

Eligible households can receive rebates of $1,500 to $3,500+ when replacing gas ducted heating with a new reverse-cycle ducted system through an accredited VEU provider. Victorian Air Conditioning Solutions is fully accredited to deliver these rebates directly at installation.

What Makes You Eligible?

• You own or rent a Victorian residential property
• The existing system being replaced is gas-powered
• The new system is a reverse-cycle air conditioner with a high energy rating
• Installation is carried out by a licensed, VEU-accredited installer

Environmental Considerations

Victoria’s electricity grid is becoming cleaner each year as renewable energy sources grow. This means the carbon footprint of running a reverse cycle system is already lower than gas in many scenarios — and will continue to decrease over time. Gas, by contrast, produces carbon dioxide and methane at the point of combustion regardless of grid changes.

For households with rooftop solar, a reverse cycle system can effectively be run on free renewable energy during daylight hours, further reducing both costs and emissions.

Conclusion

For Victorian homeowners currently running gas ducted heating, the combination of rising gas prices, generous VEU rebates, and the dual heating-cooling capability of reverse cycle systems makes 2025 an ideal time to make the switch. Victorian Air Conditioning Solutions provides free home assessments and handles all VEU rebate paperwork on your behalf.

Contact Victorian Air Conditioning Solutions: info@victorianairconditioningsolutions.com.au  |  Call: 1300 001 690