For Melbourne homeowners replacing a heating system, the big decision is now between sticking with gas ducted heating or switching to ducted reverse cycle. It is a genuinely different choice than it was a few years ago: rebates for going electric, rising interest in cooling, and the efficiency of modern heat pumps have shifted the balance. This guide compares the two honestly — running cost, upfront cost and the rebate, comfort, and which suits which home.
The Choice Melbourne Faces
Gas ducted heating has warmed Melbourne homes for decades and still heats reliably. But the case for ducted reverse cycle has strengthened: it provides cooling as well as heating, it is efficient (COP 3–5), Victorian rebates substantially reduce the cost of switching from gas, and electrifying removes the gas supply charge. With Victoria actively encouraging electrification, many homeowners replacing an old gas heater are choosing reverse cycle instead of like-for-like gas. The sections below weigh the real trade-offs.
Running Cost Compared
On heating running cost, a modern well-zoned reverse cycle system is comparable to or cheaper than gas ducted heating in Melbourne, as the chart shows. The heat pump’s efficiency and zoning keep electricity use down, and electrifying removes the gas daily supply charge — a fixed cost that the chart deliberately excludes.
The comparison tilts further toward reverse cycle with higher efficiency, better zoning, and especially solar. Gas can still be competitive where gas rates are low, but the direction of travel favours electric.
Heating Only vs Heating & Cooling
This is the difference people often overlook. Gas ducted heating only heats — if you also want summer cooling, you need a separate system (split systems or evaporative), with its own cost. Ducted reverse cycle does both from one system through the same ducts. So the fair comparison is not gas heating versus reverse cycle heating, but gas heating plus a cooling system versus one reverse cycle system that does everything. Viewed that way, reverse cycle is frequently the better value for a home that wants year-round comfort.
Upfront Cost & the Rebate
A new reverse cycle system costs more upfront than a like-for-like gas heater replacement — but two things narrow the gap sharply. First, if your existing ducts can be reused, you avoid a major cost. Second, the Victorian Energy Upgrades rebate for replacing gas ducted heating with reverse cycle is worth thousands, applied as an upfront discount. Together, these can bring the net cost of switching close to a gas replacement — while delivering cooling and lower running costs as well. See our rebate guide.
Comfort and Performance
Both deliver whole-home warmth through ducts. Gas heating produces very warm air quickly and is unaffected by outdoor temperature. Reverse cycle delivers steady, even comfort and, with a modern inverter system, holds temperature precisely; it keeps heating effectively through Melbourne winters, though efficiency dips slightly on the coldest mornings. For cooling, reverse cycle is in a different league — it provides genuine refrigerated air conditioning, which gas cannot. For most homes the comfort difference is marginal on heating and decisive on cooling.
Which Is Right for Your Home
Choose ducted reverse cycle if you want heating and cooling from one system, you are replacing an old gas heater (and can claim the rebate), you have reusable ducts, or you want to electrify and drop the gas connection. Gas ducted heating may still suit if you have a newer gas system, no need for cooling, and access to cheap gas. For most Melbourne homes making the decision today — especially with the rebate — ducted reverse cycle is the stronger long-term choice. We give honest, no-pressure advice at quote. Call 0431 918 137.