If you have gas ducted heating in Melbourne, the most valuable electrification move available to you is replacing it with a ducted reverse cycle system — and right now, a substantial Victorian rebate makes the switch far more affordable than it looks. You gain cooling, lower running costs, and you can drop the gas supply charge. This guide explains the upgrade, the rebate, what you actually pay, and how to access it. It is general information — confirm current figures with an accredited installer.
The Headline Upgrade
Swapping gas ducted heating for ducted reverse cycle is the single highest-impact electrification step for most Melbourne homes. The new system heats and cools through the same ducts, runs on efficient heat-pump technology, and qualifies for the largest of the gas-replacement rebates. Because it can often reuse your existing ductwork, the practical cost of switching is far lower than installing ducted air conditioning from scratch. See our ducted reverse cycle guide for how the system works.
The Rebate — What It Covers
The Victorian Energy Upgrades (VEU) program provides an incentive for replacing gas ducted heating with ducted reverse cycle, applied as an upfront discount through an accredited installer. As the figure above shows, the rebate covers a meaningful portion of the install cost — often several thousand dollars — so you pay the reduced balance. The exact amount depends on the system, the home and the program’s current settings, which is why it is confirmed at quote rather than quoted as a fixed number here. See our VEU explained guide.
What You Actually Pay
A whole-home ducted reverse cycle system typically costs $12,000 to $16,000 installed. After the VEU rebate is applied upfront, many homeowners pay from around $9,000 — and if your existing ducts can be reused, the figure can be lower again because you avoid a new duct network. The precise price depends on your home size, the number of zones, the system capacity and the duct condition. See the full installation cost breakdown.
Reusing Your Existing Ducts
The ductwork is one of the most expensive parts of a ducted system, so reusing your existing gas-heating ducts — where they are sound and suitably sized — is the key to keeping the switch affordable. A technician assesses the duct size, condition, sealing and insulation, and the return air, to confirm they suit refrigerated cooling. Where everything checks out, the ducts are reused as-is; where there are minor shortfalls, targeted upgrades may be recommended rather than full replacement. See our adding cooling to existing ducts guide.
The Ongoing Savings
The rebate reduces the upfront cost; the savings then continue every year. Electrifying removes the gas daily supply charge entirely — a fixed cost of around $300 or more a year regardless of usage. The reverse cycle system runs efficiently (COP 3–5), and if you have solar, daytime heating and cooling can run largely on power you generate. And you get cooling included, replacing what would otherwise be a separate air conditioning cost. See our savings guide.
How to Access It
You access the rebate through a VEU-accredited installer, not by claiming it yourself. The installer confirms your eligibility, installs an approved reverse cycle system, handles the program paperwork, and applies the discount so you pay the reduced price. The practical steps: confirm you have an existing gas ducted system, get a quote from an accredited installer with the rebate applied, and check the duct-reuse option. FreshDuct can advise on accessing the program for eligible Melbourne homes. Call 0431 918 137. See our eligibility guide.