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Swapping a gas heater for reverse cycle in Victoria

Victoria will take a real amount off the price of reverse cycle heating if it replaces gas. The catch is who is allowed to apply it.

Figures checked

Short answer

Victorian Energy Upgrades takes up to $1,610↗ off an efficient reverse cycle air conditioner that replaces a non-ducted gas heater, and up to $5,530↗ when it replaces ducted gas. The discount is taken off the quote↗, only accredited providers only↗ can apply it, and the old system must be more than 2 years old↗.

How the Victorian Energy Upgrades discount works: an old gas heater is replaced by an efficient reverse cycle system, and the discount comes straight off the installer's quote Gas heater more than 2 years old Efficient reverse cycle heats and cools Installed price Discount, off the quote You pay
Not to scale. The discount comes off the quote, so you only ever pay the balance.

How much is the discount?

Victorian Energy Upgrades discount, by the gas heater you replace Bars. Replacing a non-ducted gas room heater: up to $1,610. Replacing ducted gas heating: up to $5,530. $0 $2,000 $4,000 $6,000 Replacing a gas room heater up to $1,610 Replacing ducted gas heating up to $5,530
Both are maximums. Source: Victorian Energy Upgrades, Victorian Government.
Show the numbers
Replacing a gas room heaterup to $1,610
Replacing ducted gas heatingup to $5,530

Both figures are "up to" amounts. What you actually get depends on the product and the job, so it pays to compare what two accredited providers offer for the same system.

What will it save on your bills?

Estimated yearly bill savings from leaving gas heating Bars. Replacing a non-ducted gas room heater: up to $460 a year. Replacing ducted gas heating: up to $1,140 a year. $0 $400 $800 $1,200 Gas room heater replaced up to $460 a year Ducted gas heating replaced up to $1,140 a year
Victorian Government estimates, not a guarantee. Source: Victorian Energy Upgrades, Victorian Government.
Show the numbers
Gas room heater replacedup to $460 a year
Ducted gas heating replacedup to $1,140 a year

Picture a family in a draughty Ballarat weatherboard with ducted gas heating that runs every winter evening. That is the household the larger figures describe. A flat with one gas wall heater used on cold nights will save less, and your own tariffs decide your real number.

Why the gap? A reverse cycle system moves 3 to 5 units of heat per unit of electricity↗, which is the subject of our running cost comparison.

Who qualifies?

  • all Victorian households, including private rentals↗ can get a heating and cooling discount.
  • The new system must be an approved high-efficiency reverse cycle system↗, one that heats and cools.
  • If you are replacing a system, it must be more than 2 years old↗.
  • There is no minimum system size↗, so a single bedroom unit can qualify.

Renting? Private rentals are eligible, so the discount is worth raising with your landlord. They choose the provider and sign the quote.

How do you claim it?

  1. Find an accredited provider, or an installer who is partnered with one.
  2. Ask for a quote on an approved reverse cycle product, with the discount shown as its own line.
  3. The provider manages the installation and applies the discount.
  4. You pay the balance. There is no form to lodge and no rebate to wait for.

What should you check before signing?

  • The provider is accredited, or your installer can name the accredited provider they work with.
  • The model is on the approved product list.
  • The discount appears on the quote, not as a verbal promise.
  • The technician holds a Refrigerant Handling Licence↗. See the ARCtick guide.