The team was professional, helpful, and easy to deal with throughout the entire process. They explained everything clearly and kept me informed every step of the way. The installation went smoothly and was completed efficiently.
Gas ducted heating replacement
Replacing gas ducted heating with reverse-cycle in Melbourne.
A ducted reverse-cycle system typically costs $9,000 to $18,000 installed in Melbourne, before a government-backed Victorian Energy Upgrades discount when it replaces ducted gas heating: up to $2,520 at 10 kW, $4,200 at 16 kW and $5,530 at 22.4 kW. The minimum co-payment is currently $1,000 including GST, and energy.vic.gov.au quotes bill savings of up to $1,140 a year. The same system cools the house in summer.
- Installed across metro Melbourne through an Accredited Provider in our partner network
- Ducts, extras and the discount itemised on your quote
- No income test for the discount
Running costs
Is it worth replacing gas ducted heating?
On running costs, usually yes. Sustainability Victoria modelled annual heating costs for pre-2005 Melbourne homes heated to 20°C, and ducted reverse-cycle came out well below gas ducted at every house size. energy.vic.gov.au separately quotes bill savings of up to $1,140 a year for replacing a ducted gas heater with efficient reverse-cycle.
| House size | Gas ducted, 3 star | Gas ducted, 6 star | Ducted reverse-cycle, 1 star | Ducted reverse-cycle, 2 star |
|---|---|---|---|---|
| 100 m² | $1,961 | $1,540 | $1,153 | $721 (2.5 star) |
| 160 m² | $2,921 | $2,299 | $1,846 | $1,318 |
| 220 m² | $3,853 | $3,036 | $2,538 | $1,813 |
Source: Sustainability Victoria, Calculate heating costs (last updated 23 July 2025; Sustainability Victoria closed on 30 June 2026 and its pages are no longer updated). Assumes an unzoned home heated to 20°C, electricity at 29.2c/kWh and gas at 3.26 to 3.67c/MJ. These are modelled estimates; your home's result depends on its size, insulation, usage and tariffs. The Essential Services Commission reported median residential gas market offers rose between 3% and 10% across Victoria's three gas distribution zones in 2024-25.
What it costs
How much does it cost to replace gas ducted heating in Melbourne?
The system itself is the big number, and the ducts, return air grille and switchboard decide where you land in the range. Your quote should list each one.
| Item | Typical cost | Notes |
|---|---|---|
| Ducted reverse-cycle, about 10 kW | $9,000 to $12,000 installed | smaller homes; CHOICE puts ducted reverse-cycle at $9,000 or more installed |
| Ducted reverse-cycle, 14 to 16 kW | $11,000 to $18,000 installed | about 115 to 145 m² of heated area on energy.vic.gov.au's sizing guide |
| New ductwork | $1,500 to $4,000 | installer price guide figure for replacing failed gas ductwork; reverse-cycle ducting is larger and priced on inspection |
| Larger return air grille | $300 to $600 | installer price guide |
| Switchboard upgrade | $800 to $3,500 or more | installer price guide; only if your board needs it |
| Removing the old gas heater | usually in the quote | one installer lists about $500 to $1,500 when it's a separate job |
A worked example. A 16 kW ducted reverse-cycle system replacing ducted gas heating typically lands between $11,000 and $18,000 installed in Melbourne. If the full published discount of $4,200 applies, that's roughly $6,800 to $13,800, plus any new ducts or electrical work your home needs. Your quote shows the discount and the minimum co-payment that apply on your install date.
System prices are market ranges from 2026 Melbourne installer price lists and cost guides; extras are ranges published by Melbourne installers, checked 17 September 2026. They aren't quotes, and your itemised quote prices your home.
Government-backed discounts
The discount for replacing gas ducted heating.
Through the Victorian Energy Upgrades program, the discount comes off your quote, applied by an Accredited Provider. There's no income test, and it applies to owner-occupied homes and private rentals.
| What it replaces | What you install | Published discount |
|---|---|---|
| Ducted gas heater | Ducted reverse-cycle, 22.4 kW | up to $5,530 |
| Ducted gas heater | Ducted reverse-cycle, 16 kW | up to $4,200 |
| Ducted gas heater | Ducted reverse-cycle, 10 kW | up to $2,520 |
| Ducted gas heater | Multi-split with a 10 kW outdoor unit | up to $2,940 |
| Ducted gas heater | Four split systems: one 8 kW and three 3 kW | up to $2,520 |
| Central electric ducted heater (100 m² or more) | Ducted reverse-cycle, 10 to 22.4 kW | up to $5,460 |
- Minimum co-payment: currently $1,000 including GST per ducted or multi-split system, and $200 including GST per split system under 10 kW, under the Essential Services Commission's rules.
- The old heater must be the home's main heating and more than 2 years old, and the home must not have been built in the last 2 years.
- The new system must be an approved high-efficiency reverse-cycle model with a minimum 5-year warranty.
- Don't disconnect gas first. The Essential Services Commission's activity guide requires the existing gas heater to still be connected to a gas supply before it's decommissioned, unless it was disconnected for safety reasons.
Indicative household discounts from the Victorian Government's heating and cooling discounts page (updated 25 August 2026), checked 17 September 2026. Proposed change: The Victorian Government has proposed raising the minimum co-payment to $3,000 including GST for all ducted systems and for multi-splits of 10 kW or more, and capping multi-split incentives in homes at 20 kW, from 30 September 2026 once the program specifications are updated. Your quote follows the rules in force on your install date.
Ducts and vents
Can you reuse your gas heating ducts?
Sometimes, but plan for new ones. Reverse-cycle ducts are wider inside with thicker insulation, so their outside diameter is larger. energy.vic.gov.au calls replacing ducting the general rule of thumb when moving from gas, and Sustainability Victoria says new ductwork will be needed. The Essential Services Commission expects installers to replace ducts that aren't suitable to reuse, and to explain that clearly.
Floor vents. Plenty of older Melbourne homes heat through the floor. The bigger ducts may not fit underneath, so they may need to run through the ceiling instead, and the return air grille may need to grow. If ducted doesn't suit the house, a multi-split or split systems replacing ducted gas also attract a discount.
Sizing for Melbourne winters
What size ducted system does a Melbourne home need?
energy.vic.gov.au recommends 1.1 to 1.4 kW of heating output for every 10 m² a ducted system covers. That puts a 150 m² area at roughly 16.5 to 21 kW and 200 m² at 22 to 28 kW. The largest household discount tier is 22.4 kW.
Rated heating output is measured at 7°C outside, and the Zoned Energy Rating also lists output at 2°C (ducted systems don't have to display the label, so ask for it). For context, Melbourne Airport's July mean minimum is 5.5°C, with about 8 days a year at or below 2°C (Bureau of Meteorology, 1970 to 2026). An undersized system can struggle on the coldest days and an oversized one costs more, so an onsite load assessment is best practice. Sustainability Victoria's tip: set the thermostat to 18 to 20°C, because every degree higher adds around 15% to the heating bill.
Going all-electric
Disconnecting gas after the swap.
If heating was your last big gas appliance, you can remove the connection altogether and stop paying the daily supply charge, which energy.vic.gov.au puts at around $350 to $400 a year. Abolishment permanently disconnects the service pipe at the street and removes the meter; a disconnection is temporary, usually a lock and plug at the meter. The Victorian Government's factsheet estimates an existing dual-fuel home going all-electric saves around $1,190 a year, or $2,230 with solar.
| Gas network | Fee | What it covers |
|---|---|---|
| AusNet | $270.39 | meter removal and service disconnection |
| Multinet | $268.40 | meter removal and service abolishment |
| Australian Gas Networks | $268.40 | meter removal and service pipe removal |
Network reference tariffs effective 1 July 2026. Your retailer passes the fee on and may add a handling fee or meter read fee. Under a new national rule, abolishing customers on Victorian networks move to cost-reflective charges from 1 July 2028. Remember: keep the gas connected until the old heater has been decommissioned under the upgrade.
Pair it with solar. Moving heating onto electricity makes rooftop solar worth pricing at the same time. The federal STC discount is about $1,450 on a 6.6 kW system installed in 2026 in most of Melbourne (STC Zone 4), and about $1,650 in Zone 3 postcodes such as Craigieburn, Epping, Melton and Sunbury. Price both on one walkthrough call.
Age and safety
When an old gas ducted heater is due for a decision.
A 2011 Energy Rating product profile put the average life of a gas ducted heater at 15 to 25 years. Energy Safe Victoria recommends servicing gas heaters at least every two years by a qualified gasfitter, including carbon monoxide testing, and suggests considering replacement for a heater that's old or hasn't been serviced for several years. If yours is overdue for a service, get that done regardless of what you decide next.
The 2027 rules. Owner-occupiers don't have to replace gas heating. Under the new efficiency standards, from 1 March 2027 a rental provider whose heating breaks beyond repair must replace it with an efficient electric reverse-cycle air conditioner in the main living area, with exemptions where compliance is impractical or too costly.
Common questions
Replacing gas ducted heating, answered.
Is it worth replacing gas ducted heating with reverse-cycle air conditioning?
For many Melbourne homes the running costs point that way. Sustainability Victoria's modelled mid-2025 heating costs for a 160 m² pre-2005 Melbourne home were about $2,299 to $2,921 a year with gas ducted (6 to 3 star) and about $1,318 to $1,846 with ducted reverse-cycle (2 to 1 star), before supply charges. energy.vic.gov.au quotes bill savings of up to $1,140 a year for the swap, and the government-backed Victorian Energy Upgrades discount is up to $5,530 on a 22.4 kW system, with a minimum co-payment (currently $1,000 including GST). Your own saving depends on your house, your usage and your tariffs.
How much does it cost to replace gas ducted heating in Melbourne?
A ducted reverse-cycle system typically costs $9,000 to $12,000 installed for about 10 kW and $11,000 to $18,000 for 14 to 16 kW in Melbourne, before any discount. One Melbourne installer's 2026 price guide lists common extras: new ductwork $1,500 to $4,000 (an installer figure for replacing failed gas ductwork; reverse-cycle ducting is priced on inspection), a larger return air grille $300 to $600, and a switchboard upgrade $800 to $3,500 or more. The published discount for replacing ducted gas heating is up to $2,520 at 10 kW, $4,200 at 16 kW and $5,530 at 22.4 kW, and you pay a minimum co-payment, currently $1,000 including GST. The Victorian Government has proposed raising the minimum co-payment to $3,000 including GST for all ducted systems, and for multi-splits of 10 kW or more, from 30 September 2026.
Can I keep my existing gas heating ducts?
Sometimes, but official guidance leans towards replacing them. energy.vic.gov.au calls replacing ducting the general rule of thumb when moving from gas to reverse-cycle, and Sustainability Victoria says new ductwork will be needed because reverse-cycle ducts are wider with thicker insulation. The Essential Services Commission expects installers to replace ductwork that isn't suitable for reuse, such as ducts that are the wrong size or have degraded.
What if my home has floor vents?
The wider ducts reverse-cycle needs may not fit under the floor, so Sustainability Victoria says they may need to run through the ceiling instead, and the return air grille may need to be bigger. If a ducted system doesn't suit the house, a multi-split system replacing ducted gas heating attracts up to $2,940, and four split systems up to $2,520. Minimum co-payments apply: currently $1,000 including GST for a multi-split and $200 including GST for each split system under 10 kW.
Should I disconnect my gas before the upgrade?
No. Under the Essential Services Commission's activity guide, the existing gas heater must still be connected to a gas supply before it's decommissioned, unless it was disconnected for safety reasons. Abolishing the connection first could make the upgrade ineligible for the discount. Sort the heating swap first, then decide about the gas connection.
How much does it cost to disconnect gas completely in Victoria?
For 2026-27 the network fee to abolish a residential gas connection is about $270 including GST: $270.39 on AusNet's network and $268.40 on Multinet and Australian Gas Networks. Your retailer may add a handling fee or a final meter read. Once the gas is disconnected, the daily supply charge stops, which energy.vic.gov.au puts at around $350 to $400 a year. Under a new national rule, abolishment charges for Victorian networks are due to change from 1 July 2028.
What happens to the old gas ducted heater?
Under the program's rules the gas line is sealed or capped to the gas installation standard, and the Essential Services Commission expects most replaced products to be removed and disposed of by the installer. A unit left in place must be made permanently unusable. When removal is part of the upgrade it's usually included in the quote.
Will ducted reverse-cycle keep a Melbourne home warm in winter?
Sizing is what matters. energy.vic.gov.au recommends 1.1 to 1.4 kW of heating output for every 10 m² a ducted system covers, so a 150 m² area needs roughly 16.5 to 21 kW. Rated heating output is measured at 7°C outside, and the Zoned Energy Rating also lists output at 2°C (ducted systems don't have to display the label, so ask for it). Melbourne Airport's July mean minimum is 5.5°C, with about 8 days a year at or below 2°C. An onsite load assessment by the installer is best practice.
How long does a gas ducted heater last?
The average life of a gas ducted heater is 15 to 25 years, and industry sources put the share replaced by 20 years at about half, according to a 2011 Energy Rating product profile. Energy Safe Victoria recommends servicing gas ducted heaters at least every two years, including a carbon monoxide test at the vents, and suggests considering replacement for a heater that's old or hasn't been serviced for several years.
Do I need zoning to get the discount?
No. Zoning isn't a condition of the Victorian Energy Upgrades discount. energy.vic.gov.au recommends zones for ducted systems, and whether a home can be zoned depends on its layout and where the return air grille sits.
Do I have to replace my gas heating in 2027?
Not if you own and live in the home: there's no requirement for existing owner-occupiers to switch gas space heating to electric. From 1 March 2027, rental providers whose heating breaks and can't be repaired must replace it with an efficient electric reverse-cycle air conditioner in the main living area. Exemptions apply where compliance is impractical or too costly.
Related: air conditioning installation in Melbourne and air conditioning discounts in Victoria.
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I had a great experience with Tidy Energy. The team was professional, friendly, and responsive throughout the entire process. They explained everything clearly, kept me informed, and made the experience smooth and hassle-free. Highly recommend to anyone looking for a reliable and trustworthy energy company.
I had an excellent experience with Tidy Energy. Their team was professional, knowledgeable, and responsive throughout the entire process. They provided reliable service, communicated clearly, and made everything simple and stress-free. It's refreshing to work with a company that truly values its customers and delivers on its promises.
Outstanding service from start to finish! The installers were courteous, knowledgeable, and worked very efficiently. They made sure everything was installed properly and left the area clean afterward. I really appreciate how easy the whole process was. Thank you for providing such excellent service!
From the initial consultation to the final installation, the team was professional, knowledgeable, and efficient. They took the time to explain everything clearly, answered all questions, and made the entire process smooth and stress-free.
The team was professional, helpful, and easy to deal with throughout the entire process. They explained everything clearly and kept me informed every step of the way. The installation went smoothly and was completed efficiently.
I truly appreciate all the assistance they provided with my queries. Their customer service was outstanding — they guided me through the entire process from start to finish and exceeded my expectations.
I had a great experience with Tidy Energy. The service was reliable, the setup process was straightforward.
I had a great experience with Tidy Energy. The team was professional, friendly, and responsive throughout the entire process. They explained everything clearly, kept me informed, and made the experience smooth and hassle-free. Highly recommend to anyone looking for a reliable and trustworthy energy company.
I had an excellent experience with Tidy Energy. Their team was professional, knowledgeable, and responsive throughout the entire process. They provided reliable service, communicated clearly, and made everything simple and stress-free. It's refreshing to work with a company that truly values its customers and delivers on its promises.
Outstanding service from start to finish! The installers were courteous, knowledgeable, and worked very efficiently. They made sure everything was installed properly and left the area clean afterward. I really appreciate how easy the whole process was. Thank you for providing such excellent service!
From the initial consultation to the final installation, the team was professional, knowledgeable, and efficient. They took the time to explain everything clearly, answered all questions, and made the entire process smooth and stress-free.
Melbourne, VIC
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