Convert Your Gas Central Heating To Electric

We’re lucky to live in a country with an abundance of natural gas, yet our gas prices increase incrementally year on year. It’s because most of our gas (72%) is exported (source). It forces us Australians to compete with global export prices. In short, despite the gas coming from Australia, we pay the same prices as those outside Australia.

Gas has become the most expensive option for energy production, again upsetting wholesale prices. Combine this with climate change education and our growing understanding of our individual carbon footprint, and a lot of Australians are making the switch, or at the very least Googling ‘Is it worth switching from gas to electric?’

If you’re here, doing your research, we have some great news for you. Not only can you upgrade your gas central heating to electric, as part of a property upgrade, but under the VEU program, Victorians can get a discount on it.

That’s right.

Along with LED upgrades and Hot water heat pumps, Victorians can use the VEU program to reduce the cost of a new air conditioning and heating system with a discount. As often, these programs and incentives generate questions around specifications, eligibility, etc, so we have answered some, if not all, of those questions here for you.

If there’s anything else you’d like to know—if we haven’t answered a question, or you want to enquire about your property, please get in touch. Otherwise, navigate using the links below and go directly to the question you want an answer for.


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Let’s dive in…


Is it cheaper to heat with gas or electric?

It is cheaper to heat your home with electric heating.

It didn’t used to be—hence why many homes across Victoria were built with gas appliances. Since then, the energy market has shifted and it’s now cheaper to heat your home with electricity.

Below is a helpful chart to see how much you can save if you switch from gas to electric, and (even more helpfully) we have included the ROI for the average cost of a 4-headed split system electric heating.

Cost savings from gas to electric

After 4 years you will have paid off your initial investment with the savings on your heating.

Can I upgrade my central heating from gas to electric?


Was that too quick an answer?

Yes, you can upgrade your gas central heating to electric. We could elaborate, but our other questions will answer them for you. Let’s keep going…

Is there a rebate for upgrading from gas to electric heating?

There is no ‘rebate’ for upgrading your central heating from gas to electric. Instead, it’s a discount. It works alongside the Victorian energy upgrades air conditioner discount that was introduced in 2024. We have information on that here.

The cost of your new heating (and/or cooling) system is discounted, so your initial outlay is reduced rather than applying for a rebate. It makes it a little bit easier.

In Victoria, residents are increasingly moving away from gas as the state degasifies. Hence, heating and cooling upgrades have been included in offers within the VEU program.


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How much does it cost to convert gas to electric heating in Australia?

It depends on so many factors, such as:

      • The size of your property
      • The scale of the project
      • The system you’re upgrading to
      • Manufacturers/products

There is no one-size-fits-all cost for converting from gas to electric heating. We have some rough figures here (link to question above) that can provide some clarity.

The retailer determines the discount and the cost of upgrading your central heating (or air conditioning).

For our latest costs, we recommend contacting us for a quote. We have more information on the offer here.

a discounted heating system being installed in a Victorian home

Is It Free?

As with the air conditioning discount under the VEU program, there are no ‘free’ offers for heating upgrades. Any business offering a free air conditioning or electric heating system should be carefully scrutinised.

You can upgrade from gas to electric with a discount.

      • No rebate
      • Not free

Who is eligible for a heating discount in Victoria?

This offer matches the same eligibility criteria as the discounted air conditioning offer or air conditioner upgrade.

You should be eligible if you meet the following criteria: 

      • Your property is at least 2 years old
      • The property is in Victoria (homes and businesses eligible)
      • You haven’t claimed a VEU Heating upgrade in the last 2 years

If you’d like more information on eligibility and detail behind the program, check the Vic Gov website here.

How easy is it to change from gas to electric central heating?

Easy. In fact, we can do it for you.

If you’re interested and want to investigate the cost and potential benefits for your home, one of our team can come and assess your property and advise what’s involved. It’s obligation-free.


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Can I upgrade gas ducted to electric ducted?

You can, but not through us.

Our offer includes single, or multi-headed split systems.

a woman enjoying her electric heating

Can you replace a gas ducted with a reverse cycle?

If your home utilises a ducted vent system and you want to upgrade to a split system with a reverse cycle option, you will lose heating across the house, instead utilising it in targeted areas.

We recommend installing a split system into each room you want to heat/cool.

The benefit is that instead of losing 1 system for heating the property, you’re gaining the ability to heat and cool, and you will save money by switching to electric and targeting desired rooms instead of heating empty/unused rooms.

What about air conditioning?

Air conditioning systems are included in this offer. You can upgrade your home’s heating and cooling system in one convenient upgrade, subsidised with the discount through the VEU program.

We have another article here answering anything you might want to know about the air conditioning upgrade (aka: Victorian energy upgrades program air conditioner offer).

What size system will I need for my home?

“Within the VEU discounted program, you can upgrade a single split system or upgrade to a multi-head. A multi-head system that has one large outdoor compressor connected to several wall mounted indoor head units.

The fans usually sit on top of each other, like the image below.” (source)


discounted air conditioning options


“What you require may depend on your needs. For example, a property with effective insulation and double glazing might only need a single system.

In our experience, a typical three-bedroom Victorian home is best suited to the 3 system multi-head version you can see in the image above. We recommend installing a system into each room/open area that you want to heat/cool.”

air con size we recommend

Can you remove my existing gas-ducted system?

In terms of existing heating/cooling systems, we can remove and decommission existing split systems for $150 per system. And, we can decommission wall heaters (however, we don’t remove them).

Additional services are the responsibility of the homeowner.

Do you stock the brand I want?

We can stock any brand you want, however, if you select a manufacturer or product that we don’t have in stock, it can effect the price and cause significant delay. For more information on the products we supply and why, you can read our explainer here.

Do you remove wall heaters?

Our team do not remove old wall heaters. We can decommission them for you so they’re completely inactive and safe, but we do not remove them.
We can only remove inactive split systems. Within the air conditioner discount, aesthetics and interiors are not included and are the responsibility of the customer.

installing a discounted split system

Will I lose my stove if I upgrade from gas central heating to electric?

No. If you still require access to a gas supply for other utilities around your home, we cap your gas line. So, for example, if you use a gas stove, we do not cap the whole property, only the applicable line for your heating.

What is the warranty?

We offer seven-year warranties on our multi-head systems and five-year warranties on our single-split systems.

We have more information on our warranty here.

How long will discounted electric heating upgrades be available?

We don’t know. The Essential Services Commission, through the Victorian State Government, manages the scheme, and it’s up to them to decide how and when the offer ends.

To ensure you don’t miss out on the ESC-run government air conditioner and/or heating upgrade, it’s best to contact us now and assess what the options are for your property, and then you’ll have a clear idea. If you leave it too late, you might miss out.


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If you still have more questions related to the VEU’s heating discount—perhaps whether you’re eligible or which size system would work best for your property, then please get in touch. Our energy efficiency experts are only too happy to advise.

And, if you’re interested in a hot water heat pump for your property, we have information on them here.


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