Introduction
Melbourne’s notorious reputation for routinely crunching all four seasons into a single day makes reliable and efficient heating solutions an absolute must for any homeowners hoping to stay comfortable throughout the year. When selecting the best heating & cooling system for your home, the choice typically boils down to Ducted Gas Heating or Reverse Cycle Air Conditioning. Both options offer distinct advantages, but in 2025, which one delivers cost savings, sustainability, and superior performance?
What is Ducted Gas Heating & Reverse Cycle Heating?
Ducted Gas Heating and Reverse Cycle Heating are both popular heating solutions, but they operate on different principles and offer distinct advantages depending on your needs. Here’s a breakdown
Ducted Gas Heating utilises a gas furnace to heat air, which is then distributed through a network of ducts throughout your home. This method has long been a popular choice for providing fast and consistent heating across the entire house during colder months. It is typically powered by natural gas or LPG and offers a central heating solution. It includes:
- A centralised heating unit with a network of ducts.
- A quicker delivery of warmth throughout the home.
- Zoning capabilities that allow for room-specific heating, providing more control over energy uses
Conversely, Reverse Cycle Heating is a modern air conditioning solution that uses heat pump technology. It absorbs heat from the outside air and transfers it indoors to provide warmth. What makes reverse cycle systems versatile is their ability to reverse the process and act as air conditioning during warmer months. This system is powered by electricity and can be paired with solar energy for even greater efficiency. It includes:
- One system for both heating and cooling, making it a year-round solution.
- Electricity-powerer (which can be integrated with solar power for added sustainability).
- Energy-efficiency, which can save on energy costs compared to traditional methods.
- Flexible installation options, e.g. an option for both ducted and split systems.
Ultimately, your choice between ducted gas heating and reverse cycle heating will depend on personal preferences and specific needs. However, considering the long-term benefits, reverse-cycle heating is often the more efficient and adaptable choice.
Reverse Cycle Vs. Gas Ducted Heating Costs
To determine which option is more cost-effective, you need to consider several factors, including your gas and electricity rates, system efficiency, heater size, home size, and zoning capabilities. Studies show that gas heating can suffer from up to 50% energy loss. This means that for every unit of energy used by the system, only about half is converted into heat, with the rest lost through ductwork, vents, and other parts of the system. On the other hand, reverse cycle air conditioners can achieve efficiencies of 300-600%, meaning that one unit of electricity could produce up to six times as much heat. Many people view reverse cycle air heating as the more affordable option. This becomes even more appealing if you have invested in solar energy, although the initial cost of solar panels can be significant.
How to Determine Hourly Heating Costs
To accurately estimate how much it costs to run your heating system each hour, you’ll need two key pieces of information:
- Your system’s energy consumption rate:
– Measured in megajoules per hour (MJ/h) for gas heaters
– Measured in kilowatts (kW) for reverse cycle systems - Your energy tariff rate:
– Found on your gas bill (cost per MJ) or electricity bill (cost per kWh)
Calculating Gas Heating Costs (Ducted Gas)
To find the hourly running cost of a ducted gas heater:
Hourly Cost = MJ/h × gas tariff (cost per MJ)
For example, if your heater uses 100 MJ/h and your gas rate is 3 cents per MJ:
100 MJ × $0.03 = $3.00 per hour
Calculating Reverse Cycle Heating Costs
To find the hourly cost of a reverse cycle air conditioner:
Hourly Cost = kW × electricity tariff (cost per kWh)
For example, if your reverse cycle system uses 2.5 kW and your electricity rate is 30 cents per kWh: 2.5 kW × $0.30 = $0.75 per hour.
Gas Ducted vs Reverse Cycle Heating: Comparison Table
| Feature | Gas Ducted Heating | Reverse Cycle Heating |
| Chief Function | Gas ducted units offer only heating | Reverse cycle units offer both heating and cooling |
| Energy Source | Gas ducted units offer natural gas or LPG | Reverse cycle units run on electricity, which means they can use solar power. |
| System Efficiency | Gas ducted systems can achieve efficiency levels of up to around 90%, although actual performance is often lower due to heat loss through ducts and ventilation. | Reverse cycle systems can achieve efficiencies between 300% and 600%, meaning they can produce three to six times more heat energy than the electricity they consume. |
| Running Cost | Gas ducted systems are generally higher, especially with rising gas prices. | Reverse cycle units are typically lower, especially taking into account solar power and energy-efficient models. |
| Installation Cost | Gas ducted systems typically cheaper upfront. | Reverse cycle units are usually pricier up front, but they offer greater long-term savings. |
| Maintenance | Gas ducted systems require far more frequent servicing. | Reverse cycle units need lower maintenance over time. |
| Environmental Impact | Gas ducted systems produce higher greenhouse gas emissions. | Reverse cycle units are more environmentally friendly, with lower emissions. |
| Heating Speed | Gas ducted systems heat up quicker. | Reverse cycle units may not heat up quite as quickly in the extreme cold. |
| Cooling Functionality | Gas ducted systems come with the possibility of add-on cooling, at extra cost. | Reverse cycle units come with a built-in air conditioning function. |
| Star Rating Requirement | Voluntary energy performance ratings. | Mandatory Energy Star labelling requirements. |
| Noise Levels | Gas ducted systems are typically louder, especially the older units. | Reverse cycle units offer whisper-quiet operation. |
| Health & Safety | Faulty gas ducted systems come with the risk of deadly CO leaks. |
Reverse cycle units come with no CO risk, making them safer for homes with children or elderly. |
| Longevity & Future Proofing | s gas is being phased out, gas ducted systems are not at all future proof. | Reverse cycle units offer stronger long-term value with support for solar electrification. |
Similarities Between Gas Ducted and Reverse Cycle Heating
While they may seem like polar opposite technologies, gas ducted units and reverse cycle heating units do share some commonalities, such as: s
- Ducted Air Distribution: Both systems use a network of ducts to circulate warm air evenly throughout the home.
- Zoning Capabilities: They can be configured with zoning controls, allowing you to heat specific rooms or areas independently for better efficiency.
- Thermostatic Control: Each system includes a thermostat to set and maintain your desired temperature with precision.
- Outdoor Unit Requirement: Both systems require an external unit — either a furnace or heat pump — in order to operate effectively.
Why An Investment in a Reverse Cycles is An Investment in the Future
Melbourne — like many other parts of Australia — is gradually moving away from gas in favour of cleaner electric alternatives. Here are some key reasons behind the shift:
- Rising Gas Prices: Export demand and limited supply are pushing gas costs higher.
- The Solar Energy Boom: More than 2.7 million Australian homes have already adopted solar panel systems.
- More Government Rebates for Solar: Incentives and rebates are increasingly focused on electric heating and solar energy systems. Conversely…
- No More Government Rebates for Gas: Victoria has fully phased out government incentives for residential gas appliances as part of its Gas Substitution Roadmap. Rebates for gas appliances are no longer available, and the Victorian Energy Upgrades (VEU) program now focuses on supporting efficient electric alternatives such as heat pumps and induction cooktops. This shift aligns with the state’s broader goals to reduce emissions and promote clean energy use.
Choosing the Right Heating System
Choosing the right heating system for your Melbourne home is essential for maintaining comfort, managing energy use, and keeping costs in check. Here are some important considerations to keep in mind:
- Climate: Melbourne’s cold winters and fluctuating temperatures call for a system that can perform efficiently in variable conditions.
- The Size & Layout of Your Home: Larger or open-plan homes may benefit from ducted central heating, while smaller or more compartmentalised layouts might suit room-specific solutions.
- Energy Efficiency: Always opt for systems with high energy efficiency ratings. Though they may cost more upfront, they can deliver significant long-term savings on your bills.
- Installation & Maintenance: Consider both the initial installation costs and any ongoing servicing requirements. Some systems may have a lower entry cost but require more upkeep.
- Personal Preferences: Think about the kind of comfort you prefer: quick warmth, quiet operation, or cleaner energy. If sustainability is a priority, electric systems with solar compatibility may be more appealing.
Weighing these aspects will help you choose a heating solution that suits your home, lifestyle, and long-term budget.
Speak to Melbourne’s Heating & Cooling Experts Today
If you’re thinking of replacing your old gas heater, it may be worth seriously considering a reverse cycle air conditioner as a more efficient and cost-effective option for both heating and cooling your home. Ultimately, the best choice depends on your personal preferences and priorities. If efficiency and all-round comfort are key, ducted gas heating could still be a strong option. Are you ready to make the switch to reverse cycle heating and cooling? Contact Total Electrics and AC today for expert advice and tailored solutions to suit your home. You can browse our heating and cooling options here, or head to our homepage to get a free quote.