Gas Ducted Heating Rebate Victoria

Upgrading to energy-efficient heating and cooling systems has never been easier for Victorians. This is thanks to the Victorian Government’s VEU (Victorian Energy Upgrades) Program, which provides eligible Victorians with an upfront discount when they switch to energy-efficient appliances.

If you have an old gas ducted heater that you’re looking to replace, you may be eligible for a discount of up to $5,530. To qualify, your property must be more than 2 years old, and you must be replacing an existing system with a VEU-approved product that’s capable of both heating and cooling. To learn more about the opportunities available to homeowners through the VEU program and how you can receive the discount, read on below.

What is the Victorian Energy Upgrades (VEU) Program?

The VEU program, previously known as the VEET scheme, is a flagship Victorian Government initiative that provides incentives to people when they upgrade their homes or businesses to energy-efficient products and services.

When homeowners switch their gas-ducted heater to an energy-efficient alternative, such as a split-system air conditioner, this generates Victorian Energy Efficiency Certificates. Each certificate represents one tonne of greenhouse gas prevented from entering our atmosphere. Accredited providers (APs) can then sell these certificates to energy retailers to fund discounts and rebates that reduce the cost of the energy-efficient replacement.

Gas Ducted Heating Rebate: How Much Can You Save?

The exact value of the rebate will depend on the type of system you are replacing, and the type of heating or cooling system you’re installing.

Under the current Victorian Energy Upgrades (VEU) program, when homeowners replace a ducted gas heater with an efficient reverse cycle system, they should expect a discount of up to $5,530. The actual discount varies depending on the system being installed and the customer’s eligibility.

Who Is Eligible?

To be eligible for the VEU discount:

1. You must be a Victorian household or business.
2. Property age – When replacing an existing gas ducted heater, the property must be at least 2 years old.
3. Approved installer and product – The new system must be a VEU-approved product with a minimum 5-year warranty, which ensures it is of high quality and energy efficient. For a full list of the approved VEU products, please refer to this page here. The installer must also be a VEU-accredited installer.
4. Must be upgrading to a system capable of heating and cooling – You must be replacing an inefficient existing gas heater with a highly efficient system that is capable of both heating and cooling (such as a split system or ducted air conditioner)
5. Tenancy requirements – If you live in a rental property, you are still eligible to receive a discount on a new heating and cooling system. All renters will need to receive approval from the property owner before proceeding.

How to Receive a Discount

Once you meet the eligibility criteria, you can start moving through the process of applying for and receiving your discount. Although the exact process will depend on your situation (it will be slightly different for renters), you should expect the following steps:

1. Choose an energy-efficient upgrade

To receive the discount, you must choose a new energy-efficient system that is capable of both heating and cooling. This upgrade must be VEU-approved, which confirms that the system meets the expectations for quality and efficiency. You can find a list of approved products by visiting the Victorian Energy Upgrades products page.

2. Find a VEU-accredited provider

Once you’ve chosen your replacement appliance, you will need to find an accredited provider. You can choose from a full list of accredited providers by scrolling to the bottom of the Victorian Energy Upgrades products web page.

They are responsible for handling all aspects of the application, including managing the installation and overseeing the paperwork required. You can also choose your own local installer if they are partnered with an accredited provider.

3. Install the upgrade and apply the discount

If you’ve chosen an accredited provider, they will:

• confirm the product and model are eligible
• provide a quote including the discount
• install the product and complete all paperwork.

If you choose your own installer, they will:

• confirm the product is eligible with an accredited provider
• provide a quote including the discount
• install the approved product and return completed forms to the accredited provider to process the discount.

Why Switch from Gas to Electric Heating?

Switching from gas to electric heating can be a great investment for a variety of reasons. These include:

Lower running costs

Modern reverse cycle systems are generally much cheaper to run than gas ducted heating. Instead of burning fuel to generate heat, reverse-cycle systems transfer existing heat from the outside air into your home with superior efficiency. For Victorians, this should translate to smaller heating bills over winter, with a report from Environment Victoria determining that switching from gas to electric saves at least two-thirds of annual bills.

Better energy efficiency

Traditional gas ducted heaters are less efficient because a proportion of their energy is lost as waste heat through the flue, rather than warming your home. Electric appliances transfer heat from the outside, meaning almost all the energy they consume goes directly into heating or cooling your home. This makes them more efficient, with less energy lost along the way. Check the Energy Star rating of any new appliance, and prioritise models with a highly efficient 5 or 6 star rating.

Reduced emissions

Switching to energy-efficient electric appliances is one of the best ways a homeowner can lower their carbon footprint. This is because gas-ducted heaters burn fossil fuels during the combustion process, which releases harmful carbon dioxide into the atmosphere. It’s estimated that the VEU program will save 37 million tonnes of greenhouse gas emissions within Victoria between 2022 and 2027 alone.

Future-proofing against gas price rises

Within Victoria, gas prices have skyrocketed in recent years. This is partly due to the natural phasing out of gas infrastructure, with the Victorian government mandating that all new homes have to be 100% electric. While electricity prices are also increasing, electric reverse-cycle systems can better offset these losses with higher efficiency.

Best Electric Alternatives to Gas Ducted Heating

Reverse-cycle ducted air conditioning

An electric ducted reverse-cycle air conditioning system supplies warm air to your entire home through a series of ducts that are connected to a central indoor unit. Like a reverse-cycle air conditioner, an outdoor unit is used to extract heat from the outside and transfer it indoors to heat your home. When compared to a gas ducted system, an electric ducted air conditioner is usually cheaper to run and highly energy efficient.

Multi-head split systems

If you’re looking for a simple way to target multiple rooms without having to install ductwork throughout your home, a multi-split air conditioner offers a smart solution. These systems allow multiple indoor units to be connected to just a single outdoor unit.

This means every room can operate independently from each other to set its own temperature. Furthermore, because you only need a single outdoor unit, this helps to reduce the cost of adding split systems to multiple rooms. These systems are an excellent choice for apartments, as it allows coverage to multiple rooms without sacrificing valuable space outside.

High-efficiency split systems

These are popular heating systems that use electricity to warm a home during winter and cool it during summer. When in heating mode, the outdoor unit extracts heat from the outside air, which is then transferred inside to warm the room.

Compared to a ducted system, which requires extra ductwork throughout a home, a split system only requires small pipes that connect the outdoor and indoor units. This means they are cheaper upfront, with a more straightforward installation. They can operate incredibly quietly, with impressive energy efficiency, helping to lower electricity bills.

Hydronic heat pump system

A hydronic system works by circulating warm water through radiator panels within rooms or under the floor. It incorporates a process called thermal convection, in which water is heated by a boiler or heat pump, which then flows through sealed piping to heat your home.

The design of a hydronic heater helps to reduce temperature loss, making it one of the more cost-effective systems. Furthermore, because it relies on water to transport heat, it doesn’t use any fans or noisy blowers for silent operation.

How Much Does it Cost to Swap From Gas to Electricity?

The total cost for switching from gas to electricity can vary widely depending on your circumstances. The costs can be affected by how many new electric appliances you’re looking to install, the size of the property and your current electrical infrastructure. The costs will also vary depending on whether the upgrade is for a household or business. Rebates will also offset a considerable amount.

To give you an idea of the costs you can expect, let’s say you are replacing a gas ducted heater with a reverse-cycle ducted air conditioning. The initial cost for a full ducted reverse-cycle system typically falls between $9,000 and $18,000 for an average Melbourne home, depending on the size of your property and the number of zones required.

Let’s use a mid-range example of around $12,000 for a full ducted reverse-cycle system. Depending on your eligibility and the applicable VEU discount, you could receive an estimated $3,500 to $5,530 off the installation cost.

These figures are estimates only and may vary depending on your existing system and the replacement system you choose. For an accurate rebate estimate and a personalised quote, please reach out to your local installer or the team at Simplyair.

Frequently Asked Questions (FAQs)

Can I replace gas ducted heating with ducted reverse-cycle air conditioning?

Yes, you can absolutely replace your existing gas ducted heater with a ducted, reverse-cycle air conditioner. However, you generally won’t be able to use your existing ductwork, because reverse-cycle systems push larger volumes of air and require larger, heavily insulated ducts. Most gas ductwork has an insulation of R1.0, which is not compliant for re-use with a new ducted reverse-cycle system that requires a minimum of R1.5.

Can renters access the rebate?

Yes, renters can apply for the VEU upgrades. However, because the rebate involves physical installations, they must receive written consent from their landlord.

Is the rebate available across Victoria?

The VEU rebate is available to all Victorians. This includes those in metropolitan areas such as Melbourne, as well as regional communities and towns.

Can I combine the VEU program with other rebates?

Yes, you can combine the VEU upgrades with other incentives; just make sure you check the eligibility criteria carefully. For example, many homeowners pair a VEU hot water rebate with Small-scale Technology Certificates (STCs) to lower the cost even further.

However, you usually cannot claim two Victorian state rebates for the same upgrade. So if you were replacing your gas ducted heater with a split system, you cannot receive two different rebates for the same replacement.

If you’re unsure, the team at Simplyair can help you understand what combinations are allowed and the process for making a claim.

How long does the process take?

You should expect the entire VEU application process to take between 2 to 4 weeks, from the initial consultation to the finished installation.

Why Choose Simplyair in Melbourne to Replace a Gas Ducted Heater

Replacing a gas ducted heater with an energy-efficient equivalent can be a complex process that will require a new indoor heating unit, adding an outdoor compressor and potentially upgrading your entire ductwork. That’s why choosing an experienced installer is essential, such as the team at Simplyair. They’re Melbourne’s leading heating and cooling specialists, with over 20 years of experience delivering top-quality service and installations. They are an authorised retailer for the Victorian Energy Upgrade Rebates and can help you access any available discounts. For more information, reach out to the team here.