Ducted Heating vs Ducted Reverse Cycle in Melbourne: Running Costs Compared ?

If you've lived through a Melbourne winter, you know how quickly a cold morning can turn into a full day of heating. You switch on the heater before breakfast, leave it running while you're working from home, and suddenly start wondering what it's doing to your electricity or gas bill.

For many Melbourne homeowners, the choice comes down to two systems: traditional ducted gas heating or ducted reverse-cycle heating. Both can warm several rooms through ceiling or floor vents, but they work differently and have different running costs.

The cheaper system to run isn't always the cheapest to install. Your home's insulation, ceiling height, number of rooms, energy tariff and how often you use the heater all make a difference.

This guide compares ducted heating and ducted reverse cycle in Melbourne, including how each system works, what affects your bills, installation considerations and which option may make more sense for your home.

Ducted heating vs ducted reverse cycle: what's the difference?

Before comparing bills, it's worth understanding what you're actually comparing. Both systems can distribute warm air through ducts and vents, but they use different energy sources.

Traditional ducted heating (gas)

Traditional ducted heating in Melbourne usually means a central gas furnace. It burns natural gas to heat air, then a fan pushes that warm air through ducts to different rooms.

What homeowners tend to like:

• Warms several rooms through one central system.

• Can heat a home quickly.

• Familiar technology in many established Melbourne houses.

• May be cheaper to replace like-for-like if the existing furnace and ductwork are in good condition.

What to consider:

• It uses natural gas, so your bill depends on your gas tariff and the heater's efficiency.

• It doesn't provide cooling in summer.

• You may still pay a daily gas supply charge even when the heater is switched off.

• Older systems can be less efficient than newer models.

Ducted reverse-cycle heating and cooling

A ducted reverse-cycle system runs on electricity. It uses a heat pump to move heat from the outside air into your home during winter. In summer, it reverses the process and removes heat from inside.

What homeowners tend to like:

• Provides both heating and cooling.

• Can deliver several units of heat for each unit of electricity used, depending on operating conditions.

• Can be zoned so you heat or cool selected parts of the home.

• May reduce the need for a separate cooling system.

What to consider:

• The initial installation can cost more.

• Running costs depend on electricity tariffs, outdoor temperatures and system efficiency.

• Ductwork, insulation and correct system sizing make a big difference.

• Some homes may need electrical upgrades before installation.

Running costs compared: which system is cheaper?

In many Melbourne homes, a well-sized and efficient ducted reverse-cycle system can cost less to run than ducted gas heating for the same amount of warmth. The reason is simple: a heat pump moves heat rather than generating it by burning fuel.

However, there is no single hourly price that applies to every house. Your energy plan, heater capacity, thermostat setting, insulation and the number of zones being used all affect the bill.

One published 2026 Melbourne replacement guide estimates:

These are guide figures from one installer, not guaranteed prices. Your actual costs may be different.

Example: what could a winter of heating cost?

A useful way to compare the systems is to look at a worked example rather than relying only on hourly estimates.

An Australian energy comparison calculator uses the following assumptions:

• Heating capacity: 6 kW

• Heated portion of the home: 50%

• Usage: 6 hours per day

• Heating period: 100 winter days

• Gas price: 4 cents per MJ

• Electricity price: 30 cents per kWh

• Ducted gas efficiency: 80%

• Reverse-cycle coefficient of performance (COP): 3.8

Under those assumptions, the estimated seasonal costs are:

Illustrative 100-day winter comparison

Ducted gas

$324

Ducted reverse cycle

$142

Difference in this example

$182

Illustrative calculation only. It excludes the daily gas supply charge and assumes the systems deliver the same amount of useful heat. Actual tariffs and usage will change the result.

The example suggests reverse cycle could cost less for the same heating output. But don't treat $142 or $324 as a quote for your home. A large, poorly insulated property running all zones for long hours could have a very different bill.

Why reverse cycle can be more efficient

The main difference is how each system produces warmth.

A gas ducted heater burns fuel and transfers the resulting heat into the air. A reverse-cycle heat pump uses electricity to move existing heat from outside into the home.

This is measured using a coefficient of performance, or COP. A system with a COP of 3.8 can deliver approximately 3.8 units of heat for each unit of electricity it consumes under the test or operating conditions.

That doesn't mean it will always operate at the same efficiency. Performance changes with outdoor temperature, system design and how hard the unit needs to work.

Installation costs in Melbourne

The upfront price is where traditional ducted gas heating can look more attractive.

A like-for-like replacement may be relatively straightforward if your existing ductwork, vents and return-air arrangements are still suitable. Changing to ducted reverse cycle can require a different system layout, new equipment and electrical work.

One Melbourne installation guide published the following 2026 estimates:

These are indicative figures from a Melbourne installer, not fixed industry rates. House size, access, number of zones, equipment capacity and electrical requirements can change the final quote.

Don't compare installation quotes by the equipment price alone. Ask whether the price includes:

• Indoor and outdoor units or gas furnace

• Ductwork, vents and return-air grille

• Zone controls and thermostats

• Electrical work and switchboard upgrades

• Removal and disposal of the old system

• Installation, commissioning and testing

• Warranty and after-installation support

• GST

A cheaper quote may exclude work that another installer has included.

What affects your heating bill in Melbourne?

Two neighbours can have similar ducted systems and still receive very different energy bills. These are some of the biggest reasons.

1. The size and layout of your home

A compact single-storey home generally needs less heating capacity than a large two-storey house with high ceilings and several living areas.

Open-plan layouts can also be harder to heat evenly because there is more air volume to warm.

2. Insulation and draughts

Insulation makes a major difference. If warm air escapes through the roof, walls, windows or gaps around doors, your heater needs to work harder to maintain the temperature.

Before replacing your heating system, consider checking:

• Ceiling insulation

• Draughts around doors and windows

• Sealing around wall and ceiling penetrations

• Curtains and window coverings

• Gaps around floorboards and external doors

Improving the building itself can reduce the amount of heating your system needs to provide.

3. Thermostat settings

Setting the temperature higher than necessary can increase energy use. A practical starting point for winter comfort is around 18–20°C, then adjust according to household needs.

Avoid constantly turning the temperature up and down to try to heat the home faster. Use the system's normal controls and follow the manufacturer's instructions.

4. Zoning

Zoning lets you heat selected areas rather than the entire house. For example, you might use the living area during the day and bedroom zones in the evening.

It can reduce unnecessary heating, but savings depend on the system design and how the zones are configured. Ask the installer whether the system can operate efficiently when only one or two zones are open.

5. Energy tariffs and supply charges

Electricity and gas are billed differently. Gas prices are commonly quoted per megajoule (MJ), while electricity is charged per kilowatt-hour (kWh).

You should also account for daily supply charges. If you keep a gas connection for cooking or hot water, switching your heating system to reverse cycle won't necessarily remove the gas supply charge from your bill.

Compare plans using your actual usage and the Victorian Default Offer as a reference point where relevant.

Which system is better for different Melbourne homes?

There isn't one answer for every property. Your existing equipment, renovation plans and how you use each room should influence the decision.

Can you replace ducted gas heating with ducted reverse cycle?

Yes, but it isn't always a simple swap.

An installer needs to assess the existing ductwork, return-air arrangements, roof space, outdoor-unit location, electrical supply and the heating and cooling capacity required.

Some existing ducts may be reusable, while others may need replacement or modification. The installer should confirm compatibility rather than assume the old duct network will work with the new system.

If your gas heater is still working, you don't necessarily need to replace it immediately. It may make financial sense to plan the changeover before the unit fails, rather than making a rushed decision during a cold week.

Are there rebates for switching to reverse-cycle heating in Victoria?

Victorian households may be eligible for support through government energy-efficiency programs, depending on the product, installation, household circumstances and current program rules.

The Victorian Energy Upgrades (VEU) program provides incentives for eligible energy-saving upgrades. Eligibility and available discounts can change, and not every ducted reverse-cycle installation will qualify.

Before signing a contract:

1. Check the current eligibility requirements on the official program website.

2. Ask whether the installer or provider is an accredited participant.

3. Request the rebate amount in writing.

4. Confirm the full price before and after any incentive.

5. Check whether the quoted product meets the program requirements.

How to choose the right installer

A good installation matters as much as the brand of the heater. A system that is incorrectly sized or poorly installed can leave rooms uncomfortable and waste energy.

Before choosing a company, ask:

• Have you assessed the heating and cooling requirements of each room?

• What capacity do you recommend, and why?

• How many zones are included?

• Can my existing ducts be reused?

• Is my switchboard suitable?

• What is the estimated running cost, and what assumptions are used?

• What warranties apply to the equipment and installation?

• Are permits or electrical upgrades required?

• Is the final quote inclusive of GST and all installation work?

Get at least two or three written quotes and compare the same system specifications.