Swapping a whole-home ducted gas heater for efficient electric reverse cycle attracts some of the largest energy rebates in Victoria. Here's why, and how to work out what you'd get.
With gas prices climbing and Victoria pushing households toward electrification, replacing an old ducted gas heater is one of the upgrades the state most actively rewards. The reason is simple: switching a whole home off ducted gas delivers a large energy saving, and the Victorian Energy Upgrades (VEU) program scales its discounts to the size of the saving.
The VEU program issues discounts based on how much energy an upgrade is expected to save. Because ducted gas heats an entire home, replacing it with efficient electric reverse cycle represents one of the larger savings a household can make — so it sits at the top end of the discount scale. For many homes the VEU discount on this swap runs into several thousand dollars.
Answer a few quick questions and see your likely discount in under a minute — free, no obligation.
Check my eligibility →The VEU program is open to Victorian households generally and has no income test. For the ducted gas replacement specifically, you'll typically need to:
A whole-home reverse cycle system is a bigger job than a single split system, so even with a large VEU discount there's a meaningful out-of-pocket cost. But the discount takes a substantial slice off, and the ongoing running-cost savings versus ducted gas are where the upgrade pays for itself over time. The exact numbers depend heavily on your home's size and layout, which is why a site assessment from an accredited installer is essential.
Modern reverse cycle systems are highly efficient — they move heat rather than generate it, producing several units of heat per unit of electricity. Combined with rising gas prices, that's why many Victorian households find their heating bills drop after switching, on top of the upfront rebate.
Properly's free checker matches your situation against the current VEU rules and connects you with an accredited installer.
Start my free check →Properly is an independent lead service, not a government body and not an accredited provider. The information here is general and indicative only — it is not eligibility advice and amounts change with market conditions. Final eligibility is determined by the Victorian Energy Upgrades (VEU) program (administered by the Essential Services Commission) and by the accredited provider who completes your installation. Always confirm current details at the VEU program.