Reverse cycle upgrades for gas heated homes in Epping

Replacing a gas space heater with an efficient reverse cycle air conditioner gives you heating and cooling from one electric system, and the Victorian Energy Upgrades (VEU) program offers a discount on eligible upgrades. The discount must be arranged through an accredited provider before you buy or install anything, the new unit must be on the approved product list, and the system being replaced must be more than 2 years old. The rest of this page explains how that works in practice for a home in Epping or nearby.

Why households are switching

The state government’s reverse cycle buying guide says space heating and cooling accounts for over 50% of residential energy use in Victoria. A reverse cycle air conditioner is a heat pump: it moves heat into the house in winter and out of it in summer, using electricity. A gas wall furnace or ducted gas heater only heats. For households that also want cooling, one reverse cycle system replaces two appliances. Homes with rooftop solar can run it partly from their own generation, which the VEU program also points out.

What the VEU discount requires

From the VEU heating and cooling page for households:

• All Victorian households and businesses are eligible, and private rental properties are included.
• The new system must be a high efficiency reverse cycle air conditioner approved under the program, providing both heating and cooling.
• For a home, the product must come with at least a 5 year warranty.
• If you are replacing a heating or cooling system, it must be more than 2 years old.
• Only accredited providers can apply the discount. They may install the system themselves or work with a partner installer, and they handle the paperwork, including passing on the electrical and plumbing certificates.
• Retrospective discounts are typically not possible, so contact an accredited provider before buying.

The program publishes a table of indicative discounts by the system being removed and the system going in. The largest household figures are for removing a ducted gas heater and installing an efficient ducted reverse cycle system, and smaller amounts apply when no old heater is decommissioned. The figures are indicative and can change, so ask the accredited provider to confirm the amount in writing on the day you get quotes.

Typical upgrade paths

Current heating	Common replacement	Published Melbourne installed range
Gas wall furnace or room heater in the lounge	One 5 kW to 7 kW reverse cycle split	$1,900 to $3,675 to $2,300 to $4,725 by size
Gas heater plus a bedroom wing that is always cold	Multi-split with two heads	$4,200 to $7,900
Ducted gas heating, single storey	Ducted reverse cycle, basic	$8,400 to $14,700
Ducted gas heating, larger or two storey	Zoned ducted reverse cycle	$12,600 to $23,100

Ranges are from the What’s The Damage Melbourne cost table, GST included, verified October 2026. They are before any VEU discount. See the Epping air conditioning cost guide for what changes a quote within each band.

The trades involved

A gas to electric swap usually needs three licensed trades, sometimes held by one business:

1. Gasfitter. Disconnecting the old heater and capping or altering the gas pipe is gasfitting work under the Plumbing Regulations 2018. The BPC registers and licenses gasfitters.
2. Refrigeration installer. Installing the new reverse cycle system is refrigerated air-conditioning work, also licensed by the BPC, and the installer needs a refrigerant handling licence from the Australian Refrigeration Council.
3. Electrician. The new unit needs a suitable circuit, and the electrician issues a Certificate of Electrical Safety. An older switchboard may need work before it can take a large ducted unit.

You can check the plumbing and gasfitting registrations on the BPC’s find and check a practitioner page.

Rental homes: the 2027 changes

The VEU page notes that new minimum energy efficiency standards for rental homes begin on 1 March 2027. From then, a rental space heater that fails and is beyond repair has to be replaced by an energy efficient reverse cycle unit, and that unit needs an outlet in the main living room. A new lease will also require the main living room to have energy efficient cooling in place when it starts. Consumer Affairs Victoria’s cooling standard page sets the rating a compliant unit must meet. Landlords with older gas heaters in the Epping, Lalor or Thomastown rental market may find it cheaper to plan the upgrade with a VEU discount now than to replace a heater in a hurry after a winter breakdown.

What a good upgrade quote includes

• The exact model numbers, confirmed as VEU approved, and the heating and cooling capacity of each.
• The discount amount shown as a separate line, and the accredited provider’s name.
• Removal and disposal of the old heater, capping of the gas line and patching of the flue or wall opening.
• Whether the gas meter stays connected for other appliances such as cooktops and hot water.
• Electrical work, including any switchboard changes.
• Which certificates you will receive and who issues each.

What a careful provider will not do

• Install first and promise to “sort the rebate later”. Retrospective discounts are not normally available.
• Leave an old gas heater connected behind a new unit without telling you.
• Size the replacement only by matching the old heater’s output; the VEU sizing guidance asks about insulation, ceiling height, orientation and glazing too.

Getting the size right for heating

The VEU guidance notes that Victorians typically use more energy for heating than cooling, so compare models on their heating capacity and heating star rating as well as cooling. A lounge that was comfortable with a large gas furnace may need a bigger reverse cycle unit than the room size alone suggests, particularly with high ceilings or large windows. Ask the provider to show their sizing working. For single room swaps, our split system installation page covers placement and pipe runs, and for whole of home systems see ducted air conditioning.

What to do next

Note what heating the home has now, how old it is, the rooms you want covered and whether the property is rented. Then start a reverse cycle upgrade enquiry. An independent provider looks at the details, explains which VEU discount, if any, they can apply, and gives you their own written quote.

Send a job enquiry