Replacing Gas Ducted Heating: How the VEU Rebate Works

A gas heater burns fuel to produce heat. A reverse cycle air conditioner uses electricity to move heat and can provide cooling as well. The Australian Government’s electrification guide explains why heat-pump heating is a common alternative to gas.

For the household, the change is also about controls, room coverage and daily habits. If the existing system heats unused bedrooms whenever the living room is occupied, bring that up in the design discussion. Ask what the proposed replacement will let you control independently.

You do not need to choose a brand before having this conversation. Start with the rooms, the times they are used and any comfort problems the old system never solved.

These are design options, not a list of automatic VEU approvals. Each proposed configuration needs its own assessment. A neat-looking plan on a brochure can still be awkward in a house with limited outdoor space or difficult roof access.

Ask to see where the equipment and controls will go on your floor plan. Then walk through a normal winter evening: which rooms are occupied, which doors are shut and which areas need different settings?

Replacing ducted gas heating is one of the upgrade pathways described in the official heating and cooling guidance. The discount depends on the eligible job; it is not a fixed amount for every gas heater.

Ask for the old system, replacement equipment and proposed discount to be recorded on the quote. If you want to understand the figures, read our air conditioning rebate amounts guide.

Melba Energy is not a VEU accredited provider. Confirm the accredited provider responsible for the program component before work starts. Keep a copy of the agreed equipment and scope so any later change can be checked against it.

Where the eligible activity requires decommissioning, simply turning the heater off is not a substitute for the required work and evidence. Ask the responsible provider how the old equipment will be handled and what needs documenting before it is removed.

The Essential Services Commission’s February 2026 bulletin reiterates that gas supply piping must be sealed or capped compliantly when gas products are decommissioned. This is work for appropriately qualified tradespeople, not a DIY preparation task.

Get the removal scope in writing. Does it include the heater, accessible redundant components and disposal? Who deals with old outlets or wall openings? Are patching and painting excluded? These details affect how finished the home will feel when the installation is over.

Do not build your budget around reusing old gas-heating ducts without a design assessment. Ask the installer to explain the proposed ductwork, insulation, outlets and return-air arrangement. The quote should say what is new and what, if anything, is retained.

Electrical requirements also belong in the assessment. Tell the designer about other planned additions, such as induction cooking, a heat-pump water heater or an electric vehicle charger. Ask whether the proposed work accounts for those plans or only the heating installation.

These questions help expose provisional costs early. They do not mean every home needs a switchboard replacement, nor that every existing component can be kept.

1. Prepare a brief. List the rooms to serve and what does not work well today.
2. Arrange assessment. Identify equipment locations and access constraints.
3. Review the proposal. Confirm models, coverage, removal, electrical work and rebate arrangements.
4. Plan the day. Ask about access, outages, expected duration and whether the house will temporarily be without heat.
5. Complete the handover. Learn the controls and collect the relevant certificates, manuals, warranty and invoice.

Before the crew leaves, try the controller yourself. Ask how to select a zone, set a timer and clean accessible filters in line with the manufacturer’s instructions. A few minutes spent on the controls can prevent weeks of using the system in a way you did not intend.

Replacing the heater alone does not disconnect other gas appliances or close the account. If gas hot water or cooking remains, include that in your longer-term plan. For advice on a complete transition, see the government’s electrification guidance.

For the new heating system, avoid treating an advertised annual saving as a prediction for your household. Your tariffs, usage and home influence the result. The heating and cooling guide also covers insulation, draught management and efficient operation.

Keep the purchase decision in two parts: can you afford the installed upgrade, and is the proposed design suitable? Discuss any running-cost comparison using your own bills and realistic usage rather than a best-case example.

Send your installation address, safely taken photos of the heater and controller, and a rough floor plan. Tell us whether you are considering ducted reverse cycle, multi-split or separate units, or whether you want help comparing them.

Also mention renovation plans, access limits and any rooms that are especially hard to heat. A useful assessment starts with how you live in the house, not just its bedroom count.

Request an assessment or explore our air conditioning options. For the paperwork side, our VEU eligibility checklist explains what to prepare.

Checked on 10 October 2026. Program rules and certificate values can change. Use the current official guidance and your written quote before committing to an upgrade.

• Victorian Government: heating and cooling upgrades
• Australian Government: electrification
• Australian Government: heating and cooling
• Essential Services Commission: February 2026 gas decommissioning guidance