In Victoria, many homes still rely on gas ducted heating systems — expensive to run and bad for the environment. But thanks to the Victorian Energy Upgrades (VEU) program and the Heating and Cooling Rebate, homeowners can now replace their outdated gas heating systems with energy-efficient electric systems like ducted reverse cycle air conditioners or multi-split systems.
This not only cuts energy costs but also significantly reduces carbon emissions, aligning with Victoria’s push towards electrification and clean energy.
Understanding the VEU Program
The Victorian Energy Upgrades (VEU) program is a state government initiative designed to help Victorians reduce greenhouse gas emissions and lower their power bills. The program incentivises households to swap inefficient appliances (like gas ducted heating) for modern electric alternatives by offering generous rebates.
Since its launch, the program has saved Victorians millions of dollars in energy costs and prevented millions of tonnes of carbon emissions.
Rebate Amount for Gas Ducted Heating Replacement
When replacing old gas ducted heaters with an electric heating/cooling system, homeowners can receive rebates such as:
✔ Up to $5,530 for switching to a Ducted Reverse Cycle Air Conditioner
✔ Up to $2,940 for upgrading to a Multi-Split Air Conditioner system
Exact rebate amounts depend on system size, type, energy star rating, and your home’s specifics.
Why Replace Gas Heating with Electric Reverse Cycle Air Conditioning?
Cost Efficiency
Reverse cycle air conditioners are highly efficient. For every 1 kW of electricity, they can produce 3-4 kW of heating or cooling, far superior to gas systems, which typically offer less than 1:1 efficiency. In a nutshell, pairing the reverse cycle air conditioner with the right electricity plan can save you thousands on your annual electricity bill.
Electricity is the Future
Victoria is moving towards an all-electric future. With increasing rooftop solar uptake and the decarbonisation of the grid, running on electricity is greener and cheaper than gas.
Year-Round Comfort
A ducted reverse cycle system not only heats in winter but also cools in summer – a two-in-one solution.
How the Heating and Cooling Rebate Helps Reduce Electricity Bills
By removing gas appliances, homeowners eliminate daily gas connection charges, typically around $1 per day ($365 per year).
Switching to an energy-efficient reverse cycle system reduces your heating energy usage by up to 65% compared to older gas ducted systems. When combined with solar panels, your heating and cooling costs could be close to zero.
How to Apply for the Gas Ducted Heating Rebate in Victoria
✔ Step 1: Check Eligibility
Must be a Victorian resident.
Must replace an existing gas ducted system with a VEU-approved electric system.
✔ Step 2: Choose an Approved Product
Check the VEU-approved product list for eligible models.
✔ Step 3: Find an Accredited Provider
The rebate process must be facilitated by an accredited VEU provider.
✔ Step 4: Installation & Claim
The rebate is applied as an upfront discount — no waiting for cashback.
Extra Rebates and Programs You Can Combine
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Solar Victoria Rebates – For solar panels and batteries.
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Hot Water Rebate – Replace gas water heaters with electric heat pumps.
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Insulation Rebate – Improve your home’s energy efficiency further.
These can often be stacked with the heating and cooling rebate, dramatically reducing total upgrade costs.
The True Cost of Doing Nothing
Keeping an old gas ducted heater running can cost households $1,500–$2,500 per year in energy bills. Plus, gas prices continue to rise.
Victorian government data shows that households switching to electric heating save $800–$1,200 annually on energy costs.
What Systems Qualify for the Gas Ducted Heating Rebate Victoria?
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Ducted Reverse Cycle Air Conditioning Systems (Whole-home heating & cooling)
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Multi-Split Systems (Individual room control)
Both qualify for rebates under the VEU, provided they’re replacing a gas ducted heater.
✅ Frequently Asked Questions (FAQ) about Gas Ducted Heating Rebate Victoria
Q1: Who is eligible for the Gas Ducted Heating Rebate in Victoria?
Any homeowner or residential property owner in Victoria replacing an existing gas ducted heating system with an approved electric system qualifies.
Q2: How much is the rebate?
Depending on the system size and type, the rebate ranges from $2,500 to $5,530 for ducted reverse cycle systems or multi-splits.
Q3: Do I need to remove my gas completely?
No. The rebate applies to the removal of your gas ducted heater. You can still keep gas for other appliances if needed, but removing gas completely increases long-term savings by avoiding daily gas supply charges.
Q4: Can landlords claim the rebate for rental properties?
Yes. In fact, rental property standards are moving towards mandatory electrification. Landlords are eligible and are encouraged to upgrade.
Q5: How long does the rebate process take?
Most providers offer the rebate as an instant discount at the time of quote or installation. No paperwork for the homeowner — the provider handles it.
Q6: Can I combine this rebate with solar or other rebates?
Absolutely. Combining this rebate with the Solar Homes rebate, hot water upgrades, and insulation rebates can significantly reduce overall costs and ongoing bills.
Q7: Is it mandatory to use an accredited provider?
Yes. Only VEU-accredited providers can process the rebate. DIY or third-party installs without accreditation are not eligible.
Ditch the Gas and Make the Switch Today
The Gas Ducted Heating Rebate Victoria isn’t just a financial incentive – it’s a powerful push towards a cleaner, cheaper, all-electric future. By upgrading to a ducted reverse cycle air conditioner or multi-split system, you can save thousands upfront, plus enjoy year-round comfort and ongoing electricity savings.
With gas prices rising and electricity becoming cleaner and cheaper (especially with solar), now is the smartest time for Victorian homeowners to ditch gas for good.