Ducted Gas Heating Cost Australia 2026: Gas vs Electric Heating
When winter sets in, the ducted gas heating cost on your bill can come as a nasty shock, and it is not always clear whether gas or electric heating is actually cheaper. This guide explains what ducted gas heating really costs to run in Australia, what affects the final bill, how it compares with electric heating, and what you can do to reduce winter energy spend.
Understanding True Ducted Gas Heating Cost in Australia
Your total ducted gas heating cost comes from two parts: the upfront cost to supply and install the system, and the ongoing cost to run it each winter. In Australia, a complete ducted gas heating installation often falls somewhere around $3,000 to $10,000, depending on home size, ductwork complexity, zoning, unit efficiency and whether your property already has a gas connection.
Running costs can vary even more. According to Sustainability Victoria’s heating running cost calculator, an unzoned gas ducted heater can cost about $1,961 per year for a small 100㎡ home with a 3-star unit, while a 6-star unit may reduce that to about $1,540. For larger homes, annual costs can rise above $3,000, especially when the system runs for long winter periods.
Cost Factor | How It Affects Ducted Gas Heating Cost |
Home size | Larger homes need more heating output and longer duct runs |
Heater star rating | Higher-rated units use less gas for the same warmth |
Gas tariff | Usage rates and daily supply charges affect running costs |
Heating habits | Longer heating hours and higher thermostat settings increase costs |
Home efficiency | Poor insulation and draughts make the system work harder |
To estimate your own cost, check the heater’s gas input rate in megajoules per hour, then multiply it by your gas usage charge on your bill. Since tariffs vary by location and retailer, you can also compare plans through the government-supported Energy Made Easy comparison service. The Australian Government’s Energy Rating program can also help you understand how star ratings affect long-term energy use.
Why Heating Costs Feel So High in Winter
Heating is one of the largest energy loads in many Australian homes. The Australian Government notes that heating and cooling can account for 20% to 50% of energy used in Australian homes, depending on the climate zone. This helps explain why winter bills can rise sharply when a household runs ducted heating for many hours a day.
To estimate your own ducted gas heating cost, check three things:
your heater’s gas input rate, usually shown in megajoules per hour
your gas usage rate on your bill
how many hours the heater runs on a typical winter day
You can also compare current energy offers through Energy Made Easy, the Australian Government’s free energy price comparison service for households and small businesses in NSW, Queensland, South Australia, Tasmania and the ACT.
In short, true ducted gas heating cost is not just the price of gas. It is the combined result of your heater efficiency, home size, insulation, zoning, thermostat habits, gas tariff and the small amount of electricity needed to keep the system running.
What Affects Your Ducted Gas Heating Cost?
Several factors decide where your bill lands each winter:
Factor | How It Affects Your Cost |
Home size and ceiling height | Larger spaces need more energy to heat, especially in open-plan homes or rooms with high ceilings. |
Insulation and draughts | Poorly sealed homes lose warmth faster, forcing the system to run longer. |
Thermostat setting | Higher temperature settings increase gas use. Keeping the thermostat around 18–20°C can help control running costs. |
Zoning | Heating unused rooms wastes energy. Zoning allows you to warm only the areas you are using. |
Unit age and star rating | Older or lower-rated units usually burn more gas to deliver the same level of comfort. |
Gas tariff and region | Gas usage rates and daily supply charges vary by state, retailer and plan. |
Electricity use | Although gas provides the heat, the fan, ignition and control system still use mains electricity while the heater is running. This adds a small electricity cost and means the system may not work during a power outage. |
In short, the cost of ducted gas heating is not decided by gas price alone. Home efficiency, heater performance, usage habits, zoning and the small amount of electricity needed to run the system can all affect your final winter bill.
Ducted Gas Heating Cost vs Electric Heating
At first glance, ducted gas heating can look cheaper because gas usually costs less per unit of energy than grid electricity. However, this does not always mean it is cheaper to heat the home. Gas ducted systems burn fuel to create heat, while reverse cycle electric systems move heat from outside air into the home. According to the Australian Government’s Energy Rating guide for heating and cooling, reverse cycle air conditioners can move about three to five units of heat for every unit of electricity they use.
Heating Option | Cost Logic | What to Watch |
Ducted gas heating | Gas may look cheaper at the meter, but the system still loses some heat through operation and ductwork | Running cost depends on gas tariff, heater star rating, home size and winter usage |
Ducted reverse cycle heating | Electricity costs more per kWh, but heat pump efficiency can reduce the cost of useful heat | Best results depend on correct system sizing, zoning, insulation and local electricity prices |
Plug-in electric heaters | Simple to buy and use, but they usually turn one unit of electricity into about one unit of heat | Better for short-term room heating than whole-home warmth |
This is why electric heating can be cheaper in practice, especially when using an efficient reverse cycle system. Reverse cycle air conditioners are among the most energy-efficient heating and cooling options, and central systems can waste energy if they heat unused rooms. In comparison, ducted gas heating may still suit some homes, but its annual cost can rise quickly if the house is large, poorly insulated or heated for long winter periods.
For households comparing options, the fairest approach is to look beyond the meter rate. Compare the heater’s efficiency, the rooms you actually need to warm, your gas and electricity tariffs, and whether the system can be zoned. If you are also considering small plug-in heaters for bedrooms or studies, it is worth checking whether oil heaters use a lot of electricity before relying on them as a whole-home alternative.
Smart Strategies to Reduce Ducted Gas Heating Cost
You do not always need to replace your entire heating system to reduce the cost of ducted gas heating. In many homes, the biggest savings come from using the system more carefully, keeping heat inside for longer, and avoiding unnecessary whole-home heating.
Set the Thermostat Between 18°C and 20°C
A lower thermostat setting is one of the simplest ways to reduce running costs. Energy.gov.au recommends setting the heating between 18°C and 20°C in winter, and notes that every extra degree can add 5% to 10% to energy costs.
Instead of setting the heater high and leaving it running, use a moderate temperature and let the system warm the home gradually. Pair this with warm clothing, rugs and curtains so comfort does not rely only on the heater.
Use Zoning and Timers Properly
If your ducted gas heating system has zoning, use it every day. Heating unused rooms is one of the fastest ways to waste energy.
A practical winter schedule may look like this:
Time | Smarter Heating Use |
Morning | Heat kitchen, bathroom and living areas briefly |
Daytime | Turn heating down or off if nobody is home |
Evening | Heat living areas first, then bedrooms later |
Overnight | Use timers instead of heating the whole house continuously |
Energy.gov.au also recommends closing internal doors and only heating or cooling the rooms you are using.
Improve Insulation and Seal Draughts
If warm air escapes quickly, the heater has to run longer. Insulation and draught sealing reduce the amount of heat your home loses, which can lower heating demand across the whole winter.
Energy.gov.au says installing appropriate insulation in the roof, walls and floors could save over 50% on heating and cooling costs. Draught-proofing can also reduce unwanted air leaks around windows, doors, floors and vents.
Focus first on common problem areas:
gaps under external doors
poorly sealed windows
uninsulated ceilings
open vents or unused rooms
thin curtains or uncovered glass
gaps around skirting boards and floorboards
Service the Heater Before Heavy Winter Use
A ducted gas heater should be serviced regularly, especially before winter. A poorly maintained system may have blocked filters, poor airflow, worn parts or combustion issues, which can affect comfort, efficiency and safety.
Servicing can also help identify whether the system is still worth keeping. If the heater is old, inefficient or expensive to repair, it may be time to compare replacement options rather than continue paying high running costs.
Compare Gas and Electricity Plans
Your heating habits matter, but so does your energy plan. Gas usage rates, supply charges and electricity tariffs vary by retailer and location, so it is worth checking whether your current plan is still competitive.
Energy Made Easy is a free Australian Government energy price comparison service for households and small businesses in NSW, Queensland, South Australia, Tasmania and the ACT. It allows users to compare different energy companies and available plans.
Use Stored Power to Reduce Winter Electricity Pressure
Battery storage does not directly reduce the gas your ducted heater burns. However, ducted gas heating still needs electricity for the fan, thermostat, ignition and controls. During winter, the average electricity bill in Australia can also rise as households use more lighting, cooking appliances, laundry, entertainment devices, routers and small plug-in heaters.
This is where stored power can help reduce wider winter energy pressure. If you have solar or access to cheaper off-peak electricity, a portable power station can store that energy for later use. It can also keep essential electrical devices running during a blackout, including the fan and controls of a ducted gas heating system.
For a flexible, plug-and-play start, the EcoFlow DELTA Pro 3 Portable Power Station delivers reliable AC output and a considerable capacity that can expand with extra batteries. It can run your ducted heater's fan and many everyday appliances during an outage, and stores off-peak or solar power so you lean less on costly peak-rate electricity.
For homes that need stronger whole-house resilience, the EcoFlow DELTA Pro Ultra Whole-home Backup Battery starts with higher capacity and higher AC output from a single unit. Its capacity can expand to 30kWh, and the system can scale up to 90kWh, providing enough stored power to help keep an entire home running through extended outages. It can also help shift more household electricity use to stored solar or off-peak power, reducing reliance on the grid during expensive peak periods. By pairing the DELTA Pro Ultra with the EcoFlow Transfer Switch, you can seamlessly integrate it as a whole-home backup power source. Check out the installation tutorial for guidance.
Consider Electric Heating When Replacing an Old Gas System
If your ducted gas heater is still efficient and in good condition, replacing it immediately may not be necessary. But if the system is ageing, expensive to run or due for major repair, compare the long-term cost of switching to efficient reverse cycle heating.
In Victoria, the Victorian Energy Upgrades program says eligible households can save up to $460 on energy bills each year and up to $1,610 on upfront costs when upgrading to an efficient reverse cycle air conditioner. Eligibility and available discounts should be checked before making a decision.
In short, lowering ducted gas heating cost is not about one quick fix. The best results usually come from combining lower thermostat settings, better zoning, improved insulation, regular servicing, plan comparison and, where suitable, backup power for winter reliability.
Conclusion
Your ducted gas heating cost depends on far more than the gas rate alone: home size, insulation, how you set the thermostat, the electricity your system quietly uses, and how it stacks up against an efficient reverse cycle alternative, all of which shape the final bill. Start by estimating your running cost, tightening up insulation and zoning, and considering storing cheaper energy to ride out peak periods and outages. Small, informed changes add up to a warmer home and a calmer winter bill.
FAQs
Is It Worth Replacing Gas Ducted Heating With Electric?
It can be, especially if your gas unit is ageing or you have rooftop solar. Efficient reverse cycle heating often costs less to run, adds summer cooling, and may qualify for state efficiency incentives. The upfront switch is significant, so it usually makes most sense when a system needs replacing anyway. Weigh your current running costs, available rebates, and whether you plan to add solar before deciding.
Is It Cheaper to Run Gas Ducted Heating or a Split System?
Gas can look cheaper per unit of energy. Still, an efficient split system or reverse cycle unit often wins in practice because a heat pump delivers several units of heat per unit of electricity. Many Australian homes spend less on running an efficient reverse cycle system than on ducted gas, and gain summer cooling from the same unit. The best choice depends on your tariff, climate, insulation, and how much of the home you heat.
What temperature should I set ducted gas heating to in winter?
For most homes, a setting around 18°C to 20°C is a practical balance between comfort and cost. Setting the thermostat much higher can make the heater run longer and use more energy. Using zoning, timers, warm clothing and curtains can help maintain comfort without overheating the whole house.