Going Electric in Melbourne — Rebates, Costs & Upgrades
Replacing gas with efficient electric heating, cooling and hot water — how the Victorian Energy Upgrades rebates work, what electrifying costs and saves, who qualifies, and whether it is worth it for your home.
9 min read FreshDuct Melbourne Melbourne, Victoria
Victoria is electrifying, and for Melbourne homeowners that means a real opportunity: substantial rebates to replace ageing gas appliances with efficient electric ones, lower running costs, and the chance to drop the gas supply charge for good. The headline upgrade is swapping gas ducted heating for a ducted reverse cycle system that both heats and cools — but electrification also covers hot water and more. This guide explains the rebates, the costs and savings, who qualifies, and whether it stacks up for your home. It is general information, not formal program advice — confirm current details with an accredited provider.
$1,000sTypical VEU rebate value on a gas-to-electric upgrade
No supply chargeGoing all-electric removes the gas daily charge
Heats & coolsOne efficient electric system replaces the gas heater
Why Melbourne Is Going Electric
Several forces are pushing Melbourne homes toward all-electric. Gas prices and the fixed daily supply charge make gas increasingly costly to keep. Efficient heat-pump technology — reverse cycle air conditioning and heat-pump hot water — delivers several units of heat per unit of electricity, making electric cheaper to run than it used to be. The Victorian Government actively supports the shift with the Victorian Energy Upgrades (VEU) rebates. And electrifying pairs perfectly with solar, where daytime heating, cooling and hot water can run on power you generate. The result is a genuine economic and comfort case, not just an environmental one.
Figure: Indicative only. The VEU rebate is applied upfront by an accredited installer; the exact amount depends on your home and the program.
The Big Upgrade: Gas Heating to Reverse Cycle
The single most impactful electrification step for most Melbourne homes is replacing gas ducted heating with a ducted reverse cycle system. It is the upgrade with the largest rebate, it adds cooling you did not have, it runs efficiently, and — if your existing ducts can be reused — it can be surprisingly affordable. As the figure above shows, the VEU rebate is applied upfront to reduce what you pay, and the savings continue every year through lower running costs and the removed gas supply charge. See our ducted reverse cycle guide for how the system works, and the rebate page below for the numbers.
Reuse Your DuctsIf you already have ducted gas heating, the ductwork can often be reused for reverse cycle — lowering the cost of switching. See adding cooling to existing ducts.
Browse All Electrification & Rebate Topics
From the rebates and eligibility to the real costs, savings and the decision itself — choose a topic below.
What rebates are available for going electric in Victoria?
The main pathway is the Victorian Energy Upgrades (VEU) program, which offers incentives for replacing gas appliances with efficient electric ones — most notably replacing gas ducted heating with a ducted reverse cycle system, and replacing gas hot water with a heat-pump hot water system. These are applied as an upfront discount through an accredited installer, not a cashback you claim later. The incentive can be worth thousands of dollars depending on the home and the upgrade. Eligibility, equipment and installer requirements apply. See our VEU explained guide.
How much is the gas-to-reverse-cycle rebate worth?
The Victorian Energy Upgrades incentive for replacing gas ducted heating with ducted reverse cycle can be worth several thousand dollars — reducing the upfront cost substantially. The exact amount depends on the system, the home and the program’s current parameters, so it should be confirmed for your specific situation by an accredited installer. As an indicative guide, it often covers a meaningful share of the install cost, and electrifying also removes the gas daily supply charge from your bills. See our rebate & cost guide.
Is it worth electrifying my Melbourne home?
For many Melbourne homes, yes — especially when replacing an ageing gas heater. Electrifying with efficient reverse cycle heating and cooling and a heat-pump hot water system can lower running costs, remove the gas daily supply charge, improve comfort (you gain cooling), and is helped by substantial rebates. The case is strongest when gas appliances are due for replacement anyway, and stronger again with solar. It is not automatic for every home, so it is worth weighing the payback for your situation. See our is it worth it guide.
Do I have to disconnect gas to electrify?
Not necessarily — you can electrify appliance by appliance while keeping the gas connection. But once your last gas appliance is replaced with electric, disconnecting (abolishing) the gas connection removes the daily gas supply charge entirely, which is a meaningful ongoing saving. Some homeowners keep gas for a cooktop and so retain the connection; others go fully electric and disconnect. The decision depends on which appliances you electrify. See our disconnecting gas guide.
Who can install rebate-eligible upgrades?
To qualify for the Victorian Energy Upgrades incentive, the upgrade must be installed by a VEU-accredited provider using approved equipment, and the accredited installer handles the program paperwork and applies the discount. This means you pay the reduced price rather than claiming a rebate yourself. When arranging an electrification upgrade, confirm the installer is accredited for the relevant VEU activity. FreshDuct can advise on accessing the program for eligible Melbourne homes. See our eligibility guide.
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