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Air Conditioning vs Gas Heating Costs in Victoria

Choosing between gas heating and air conditioning can affect your winter energy bills. Victorian homes can use split system air conditioning or ducted air conditioning. An energy rebate in Victoria may also reduce the cost of an eligible upgrade.

Reverse cycle air conditioning can heat and cool your home. It may also cost less to run than gas heating.

However, every home is different. System size, zoning, tariffs, insulation and solar use can all change the result.

This guide explains what to compare before you upgrade.

Modern living room with wall-mounted air conditioning and gas heater in a bright Victorian home

Is reverse cycle air conditioning cheaper to run than gas heating?

Reverse cycle air conditioning is often cheaper to run than gas heating in Victoria. It moves heat from outside into your home. Gas heating creates heat by burning fuel.

The Australian Government states that reverse cycle systems can reach 300% to 600% efficiency. One unit of electricity may provide three to six units of heat.

Gas heaters lose some energy through the flue. Ducted gas systems can also lose heat through old or damaged ducts.

Their fans use electricity too.

Your final cost will depend on:

  • system efficiency
  • electricity and gas rates
  • the rooms you heat
  • how long the heater runs
  • insulation and draughts
  • access to rooftop solar

Online estimates are useful for a quick comparison. They won’t show the exact cost for your home.

Check your latest bills first. Then compare your room sizes, heating times and current system.

Sustainability Victoria offers a heating cost calculator.

Air conditioning efficiency affects your bills

Two heaters can warm the same room while using different amounts of energy.

Reverse cycle air conditioning transfers heat. It doesn’t create heat through combustion.

Modern inverter systems can change their output as the room warms up. This helps them maintain a steady temperature.

Gas heating efficiency depends on the system’s type, age and condition. Older units may lose more heat through flues and ducts.

Maintenance also affects energy use.

Dirty filters reduce airflow. Blocked outdoor units can also make a system work harder.

Regular servicing can help. However, it can’t fix poor sizing or low efficiency.

Compare these points before choosing a system:

  • heating capacity
  • energy rating
  • cold-weather performance
  • age of the current heater
  • condition of existing ducts
  • size of the room

A bigger system isn’t always better.

An oversized unit may turn on and off too often. An undersized unit may run for long periods.

A home assessment should also consider insulation, windows, ceiling height and local weather.

Split system air conditioning heats selected rooms

A central gas heater may warm the whole house at once. This can waste energy when only one room is in use.

Split system air conditioning gives you more control.

You can heat the living room in the evening. Later, you can turn it off and use a bedroom unit.

This reduces the amount of space being heated.

Wall-mounted units also avoid heat loss through long ducts. Warm air goes straight into the room.

Several split systems may suit homes where:

  • rooms are used at different times
  • people prefer different temperatures
  • an extension has separate heating needs
  • old ducts are damaged
  • only key rooms need heating

Placement is important.

Indoor units need clear airflow. Outdoor units need space and good ventilation.

One unit may not heat several closed rooms. An installer should check the layout before recommending a system.

Ducted air conditioning heats the whole home

Ducted air conditioning can heat and cool several rooms through vents.

Most of the equipment remains hidden. This creates a neat finish inside the home.

However, zoning and duct condition affect running costs.

Zoning lets you turn off rooms that aren’t in use. Without zoning, you may heat the whole home at once.

Heat can also escape through damaged ducts.

Common problems include:

  • gaps and loose joins
  • poor duct insulation
  • crushed duct sections
  • badly placed vents
  • leaking return-air paths

Ask your installer to check the zones, ducts, vents and return-air position.

Ducted systems may use more electricity than wall-mounted units. Even so, a well-designed system may cost less to run than ducted gas heating.

The right choice depends on your home.

A small home may suit two or three split systems. A larger home may need a zoned ducted system.

Energy tariffs can change the cost

Running costs depend on energy use and energy prices.

Electricity plans may use flat rates or time-of-use rates. Gas plans often include usage charges and a daily supply fee.

Review your bills and check:

  • electricity rates
  • gas rates
  • daily supply charges
  • peak periods
  • off-peak periods
  • solar feed-in rates

Don’t compare electricity and gas prices by unit alone. The units are different.

The systems also produce heat in different ways.

Instead, compare the cost of heating the same space for the same amount of time.

Replacing gas heating won’t always remove your gas supply charge. You’ll keep paying it while other gas appliances remain connected.

These appliances may include gas cooking or hot water.

If your whole home becomes electric, you may be able to disconnect gas. This can remove the daily supply charge.

Include any disconnection and electrical work in your budget.

Can solar reduce reverse cycle heating costs?

Yes. Rooftop solar can power part of your reverse cycle heating during the day.

This reduces the amount of electricity you buy from the grid.

Your savings will depend on:

  • solar system size
  • panel direction
  • winter sunlight
  • household energy use
  • heating times

Winter solar output is often lower than summer output. Heating demand may also be high before sunrise and after sunset.

You can use more solar energy by heating your home during the day.

Try to:

  • pre-heat rooms before sunset
  • heat occupied zones only
  • close doors to unused rooms
  • use a steady temperature
  • keep filters clean
  • seal common draughts

Solar may not cover all heating use. Other appliances may need power at the same time.

A battery can store solar power for later use. However, its value will depend on its size, price and daily use.

How does Victoria’s climate affect heating costs?

Victoria has cold mornings and long heating seasons.

Conditions also vary across the state. A system used in Mildura may not suit a home in Ballarat.

Reverse cycle systems can still work in cold weather. However, their output may change as the temperature falls.

Choose a unit that suits your local climate.

The Zoned Energy Rating Label compares eligible systems across hot, average and cold zones.

Victorian homeowners should check the cold-zone rating.

The home itself also affects heating costs.

Heat can escape through poor insulation, open gaps and thin windows. Your heater must then run for longer.

Before replacing your system, check:

  • ceiling insulation
  • wall and floor insulation
  • gaps around doors
  • gaps around windows
  • old wall vents
  • unused fireplaces
  • damaged ducts
  • uncovered windows

Curtains, draught seals and insulation can reduce heat loss.

They may also allow you to choose a smaller heating system.

Sustainability Victoria explains how to choose the right heating system for your home.

Energy rebate Victoria options

The Victorian Energy Upgrades program offers discounts on some reverse cycle systems.

Households, businesses and rental properties may be eligible.

Approved products can include ducted and non-ducted systems. They must meet current program rules.

Eligibility may depend on:

  • the old heater
  • the new product
  • system capacity
  • the number of units
  • removal of the old system
  • current program rules

Discounts can change. Confirm the offer before you approve the work.

To access an energy rebate in Victoria, you’ll usually need an accredited provider.

The provider should check your property, confirm the product and explain the discount.

Before work begins, ask:

  • Is my current system eligible?
  • Is the new product approved?
  • Is the discount in the quote?
  • Will the old heater be removed?
  • Are electrical upgrades included?
  • Who supplies the certificates?

Don’t buy the system before checking eligibility. The provider may need to arrange the discount before installation.

Check the current Victorian Energy Upgrades heating and cooling discounts.

What should homeowners compare besides running cost?

Running cost matters, but it isn’t the only factor.

Installation cost

A single split system may be cheaper to install than a ducted system.

Larger projects may need new wiring, switchboard work or new ducts.

Check whether the quote includes removal, electrical work and certificates.

Heating and cooling

Reverse cycle air conditioning provides both heating and cooling.

This may replace two older systems with one new appliance.

Comfort and zoning

Compare noise, airflow and temperature control.

Split systems provide room control. Ducted systems can provide even heating across the home.

Home efficiency

A new heater can’t fix heat loss.

Insulation, curtains and draught sealing can reduce the amount of heating you need.

Maintenance and warranty

Compare servicing needs, filter cleaning and warranty terms.

Also check whether replacement parts are easy to find.

Future electrification

Think about the other gas appliances in your home.

Replacing gas heating may be the first step towards an all-electric home.

You may later replace gas hot water and cooking. Full electrification may allow you to remove the gas supply charge.

Frequently asked questions

Is reverse cycle air conditioning cheaper to run than gas heating?

It’s often cheaper in an efficient Victorian home. The result depends on the system, tariff, zoning, insulation, solar and household use. A home assessment gives a more useful estimate than a broad average.

How does Victoria’s climate affect heating costs?

Colder weather increases heating demand. Location, insulation, glazing and draughts also affect heat loss. Choose a system with enough capacity and strong cold-weather performance.

Can solar reduce reverse cycle heating costs?

Yes. Solar can supply electricity to your heater during the day. Pre-heating rooms while your panels produce power may reduce grid use.

What should homeowners compare besides running cost?

Compare installation cost, zoning, noise, comfort, cooling, maintenance and warranty cover. You should also inspect your switchboard, ducts and insulation.

Request a heating and cooling assessment

Choosing between gas heating, split systems and ducted air conditioning takes more than a quick price check.

Request a free Smart Upgrades assessment to review your heater, room layout and energy use.

The team can explain suitable options and check your Victorian Energy Upgrades eligibility before installation.

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