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Replace gas heating with reverse cycle
Heat and cool your home on electricity and run it from your solar. Victorian Energy Upgrades discounts come off the price before work starts.
Victorian Energy Upgrades: indicative household discounts
For replacing a ducted gas heater with an approved reverse-cycle system. The final amount depends on the product and certificate prices.
A multi-split system on one 10 kW outdoor unit can attract up to $2,940. Source: Victorian Energy Upgrades (page updated 29 May 2026), checked 1 November 2026.
What qualifies
The new system must be an approved, high-efficiency reverse-cycle air conditioner with at least a five-year warranty. The gas heater it replaces must be more than two years old, and it is decommissioned as part of the job.
The discount has to be applied by an accredited provider before any work starts. We arrange it through our accredited VEU partner, so it comes straight off your quote.
What the job includes
- Sizing room by roomSo every zone heats properly on a cold July night.
- Old heater decommissionedGas work is done by a licensed gasfitter, as the rules require.
- Electrical workCircuit, isolator and any switchboard upgrade, by our own electricians.
- ControlsAn app or wall controller you can actually use.

Why the running costs add up
A reverse-cycle system moves heat rather than burning fuel, so it makes several units of heat for each unit of electricity it uses. Run it from your solar during the day and the cost drops further.
If heating is your last gas appliance, closing the gas account also ends the daily gas supply charge.
Will reverse cycle keep my house warm in a Melbourne winter?
Yes, when it is sized properly. Modern systems are built to heat on mornings far colder than Melbourne gets. We size each zone from the room, the insulation and which way it faces.
Can I keep my existing ducts?
Sometimes. Gas heating ducts are often too small or in poor condition for reverse cycle, which moves more air. We inspect them and tell you honestly.
Do rental properties qualify?
Yes. And from 1 March 2027, a failed gas heater in a Victorian rental must be replaced with an efficient electric system anyway. See our guide for landlords.
How much does it cost after the discount?
It depends on the system size, the ducting and your switchboard. You get one written price with the discount already taken off.



