Gas vs Electric Ducted Heating Running Costs Melbourne
Melbourne winters are longer and colder than many people expect. Mornings regularly dip into single digits, and a lot of homes (especially older ones) lose heat faster than they should. That’s why heating costs are such a big concern for homeowners. In 2026 there is a continued push to phase out gas. We compare gas and electric ducted heating running costs so you can decide whether to stick with gas heating or upgrade to ducted electric heating (reverse cycle air conditioning).
Whilst the first thought is always about which system costs less to run, the answer isn’t just about gas vs electricity prices. How your home holds heat, how many rooms you actually warm, and how you use heating day to day all play a big role.
Let’s break it down in a way that makes sense for Melbourne homes.
Table of Contents
- How the Two Systems Heat Your Home
- Current Energy Prices in Melbourne in 2026
- Cost Per kWh of Delivered Heat
- What You’re Really Paying For: Cost per Unit of Heat
- Zoned Heating in Action
- How Melbourne Households Actually Use Heating
- Key Areas That Reduce Heat Loss
- The Hidden Cost of Staying on Gas
- Where Gas Heating Can Still Make Sense
- Where Electric Heating Often Wins
- The Bottom Line for Melbourne Homes
- Do You Need Help Choosing the Right System?
How the Two Systems Heat Your Home
Before comparing costs, it helps to understand how each system produces warmth.
Ducted gas heating works by burning natural gas to create heat, which is then pushed through ducts to each room. Some heat is lost along the way, even in modern systems, so not all the energy you pay for becomes usable warmth inside the house.
Ducted electric heating uses heat-pump technology. Instead of creating heat, it moves heat from outside air into your home. Because of this, it can deliver more heat energy than the electricity it consumes, which is why these systems are known for efficiency.
This difference in how heat is produced is the foundation of the running-cost gap between gas and electric systems.
Current Energy Prices in Melbourne in 2026
To keep this grounded, let’s use typical current rates for inner-Melbourne areas like Brunswick.
Electricity usage prices sit at roughly 27 cents per kilowatt hour, plus a daily supply charge of around $1.24.
Natural gas costs around 3.6 to 4.2 cents per megajoule, plus a daily gas supply charge of close to $1 per day.
At first glance, gas looks cheaper. But looks can be deceiving!
Cost Per kWh of Delivered Heat
Melbourne ducted heating comparison — 2025-2026 rates
Electric ducted heating costs approximately
40–50% less
per unit of usable warmth
Key insight: While gas appears cheaper at the meter (3.6–4.2¢/MJ vs 27¢/kWh for electricity), modern electric systems deliver heat more efficiently. Once efficiency is factored in, electric ducted heating delivers significant savings on your heating bills.
Based on typical inner-Melbourne rates (Brunswick area) including ~27¢/kWh electricity and ~3.9¢/MJ gas usage charges
What You’re Really Paying For: Cost per Unit of Heat
Heating costs make more sense when you look at the price of usable heat, not just the price of energy.
Although gas is charged in megajoules (MJ), its cost can be converted to an equivalent cost per kilowatt hour (kWh) of heat delivered. Once heater efficiency is factored in, ducted gas heating typically delivers heat at around 15 to 19 cents per kWh.
With ducted electric heating, modern systems often deliver heat for around 7 to 11 cents per kilowatt hour, depending on efficiency and conditions.
This is why, in most Melbourne homes, electric ducted heating comes out cheaper to run over the course of a winter.
Zoned Heating in Action
Heat only the rooms you're using
Electric ducted & split systems excel at zone control
How Melbourne Households Actually Use Heating
Most Melbourne households don’t heat the entire home all day. Living areas are warmed in the morning and evening, bedrooms are often left unheated, and heating is switched off overnight. Many people also use electric blankets or heated throws when they’re sitting still.
Systems that allow selective heating (ie heating “zones” or individual rooms) tend to perform better under these habits. Electric ducted systems and split-system air conditioners suit this pattern well, because they don’t need to run the whole house just to make one area comfortable.
Key Areas That Reduce Heat Loss
The Hidden Cost of Staying on Gas
Most gas connections come with a daily supply charge that adds up to $350 or more per year, whether you use much gas or not. Homes that switch fully to electric heating, cooking and hot water can often remove the gas connection entirely, eliminating that fixed cost.
This doesn’t show up in per-hour heating comparisons, but it makes a noticeable difference to annual bills.
Where Gas Heating Can Still Make Sense
Ducted gas heating isn’t obsolete, and for some homes it still fits well.
Gas systems can be effective in:
- Larger homes with existing ductwork
- Older properties where upgrading to electric would require major changes
- Situations where fast whole-house warm-up is the priority
Some households also use a hybrid approach, briefly running gas heating to lift the house temperature, then relying on electric heating in specific rooms.
Where Electric Heating Often Wins
Electric ducted heating tends to suit homes where:
- Lower running costs are a priority
- Solar is installed or planned
- Heating and cooling are both needed
- Zoning and selective heating are important
- Long-term energy trends are a consideration
Rebates under programs like the Victorian Energy Upgrades scheme have also reduced the upfront cost of switching to electric systems, making them more accessible.
The Bottom Line for Melbourne Homes
In Melbourne’s cold climate, ducted electric heating is usually cheaper to run than a ducted gas heating installation. That advantage grows in well-insulated homes, homes with solar, and households that heat selectively rather than all day.
That said, the best system isn’t the same for everyone. Your home’s layout, insulation, budget and comfort preferences all matter just as much as energy prices.
