How much does ducted gas heating cost? [2024]

Ducted gas heating is a popular choice in Australia, but as the price of renewable energy continues to drop, it’s becoming rarer as a choice for new installs. Read on if you’re looking at putting in a ducted gas heater or if you want to compare costs and save money: 

• Advantages of ducted gas heating
• How much does ducted gas heating cost to install?
• The phasing out of gas 
• Ducted gas heating running costs
• Is ducted gas heating efficient?
• Getting quotes for ducted gas heating
• Environmental considerations with ducted gas heating

Advantages of ducted gas heating

Ducted heating systems are popular in Australia and with good reason. The ability to create zones for heating makes it easy to use and practical for large family homes, making it an easy way to stay warm in the winter. 

You can also enjoy consistent warmth with ducted heating. No matter how cold it is outside or where in the home you want to be, ducted systems give a cosy feeling throughout. With a quiet, and almost silent, murmur, ducted gas heating allows you to also enjoy your warmth in peace. 

This snug atmosphere will stay with you for a long time, too. Ducted heating systems have a long lifespan and only need to be serviced every few years. A well-maintained system should easily last 15 years, but it’s not unheard of for them to keep going for 30 years. Risks like electrical fires are also unheard of with gas ducting. 

How much does ducted gas heating cost to install?

As a general rule, it costs between $3,000 and $9,000 to install a new ducted gas heating system in Australia. Some more complex systems may be over $10,000. 

That’s a fair whack to spend on something, so we recommend making sure you know what’s included in your quote. Usually, a ducted gas heating quote should cover consultation, design of the system, all materials and labour. For your peace of mind, always get a quote and its inclusions in writing. 

Of course, no two systems are the same. Installation costs less in small homes than big homes, simply because you need less ducting and it takes less time to put in. Different systems also have different price tags. 

The cost per hour for someone to install ducted heating is generally between $25 and $40 per person. This can depend on where you are in Australia, the experience of the tradies installing the system and the time of year you get it put in. 

The phasing out of gas

Due to its negative impacts on the environment and our health, there has been a recent push to phase out gas in Australia. This is true for heating, cooking and hot water systems. 

Each state has taken a different approach to this. Some are offering incentives or rebates to switch away from gas appliances, while one has a partial ban on new gas installations.

As of 1 January 2024, any new homes in Victoria that require a planning permit legally cannot include a natural gas connection. 

There’s no change for existing homes and no restrictions on certain new developments, such as an extension. 

Ducted gas heating running costs

There was a time when ducted gas heating was considered the cheapest option in Australia, but this is rarely the case these days. In 2024, is ducted gas heating actually expensive to run?

Although air conditioners get a bad rep, heating our homes is actually the most energy-intensive thing that most Aussies do. The only exceptions are in NT and Queensland, where the weather is warmer and most people might not even own a jacket. 

In some states, the difference is huge. The average home in the ACT uses 25x more power on heating than cooling. In Victoria it’s 34x more and in Tasmania 44x more. These are also the areas with the highest uptake of ducted gas heaters – around 46% of homes in ACT and Victoria are heated this way. 

According to the Victorian government, average annual running costs for a gas ducted system in the Melbourne climate are:

 

	3 star system	4 star system	6 star system
Small house (100m²)	$1,704	$1,528	$1,347
Medium house (160m²)	$2,547	$2,286	$2,019
Large house (220m²)	$3,368	$3,025	$2,674

 

They also say that if you live in a colder area, like Ballarat, to multiply these numbers by 1.5. And for warmer areas, like Mildura, to multiply them by 0.8. 

As you can see from the table above, the star rating of your ducted gas system has a big impact on costs. The higher the rating, the higher your savings. Compared with a 3 star system, a 6 star system is more than $500 cheaper per year (on average). 

If you’re looking to save money, the cost of reverse cycle air conditioning generally works out cheaper than ducted systems. This also has the benefit of cooling in the summer months.

When comparing ducted gas between air conditioning, gas ducted systems are the most expensive. A 3 star system often costs $1,000 more per home than alternatives, such as a 2.5 star multi-split reverse-cycle air conditioner. If you go with air conditioning, you can save even more by teaming it up with solar panels. This means you can use the heater at a highly discounted rate - something you can’t do with gas. 

Another thing to consider with gas is that it comes with a daily connection fee, which can quickly add up. Prices vary across the country and by provider - for example, some plans in Western Australia are a third of the cost of those in Victoria, but many Aussie homes are charged more than a dollar a day. Over a year – or several years – this quickly adds up. You may also use gas for cooking and hot water, but switching to a gas-free home often works out cheaper in the long run – and means you don’t have to skimp on other luxuries like coffee. 

Is ducted gas heating efficient?

Gas ducted systems work by taking cold air from your home, heating it and pumping it back into your house. Depending on your system, your zones and your settings, this can be used to heat up one room, a select few or your entire home. 

As the air in your home warms up, ducted gas systems have the benefit of using less energy to keep the temperature how you want it. This means gas can be incredibly efficient if you don’t have the need to crank the temperature too high. Different ducted gas systems exist, too. As discussed previously, installing a 6 star system is far more efficient (and cheaper to run) than a 3 star option.

While there are more efficient heating systems available on the market, especially in cases where you just need to heat one room, ducted gas systems do have their benefits if you need to heat up a big house. 

Getting quotes for ducted gas heating

When you get quotes for ducted gas heating costs from installers or gas heater experts, ask for separate supply and installation quotes so you know how much you're paying. You may save money by having your supplier also install your system for you, but it's good to know the details of the gas heating unit you are buying.

Compare the prices you get from suppliers carefully. When you find the system that has the features you want at the best price, you'll know you've found the best system for you. Be wary of offers that seem too good to be true. While we all like a bargain, with an important system like this, you don’t want to skimp on quality. 

Environmental considerations with ducted gas heating

As it burns fossil fuel, ducted gas heating has a negative effect on the environment. While there’s an argument to be made that it’s cleaner than using electricity from a coal-powered plant, there are definitely other options available with higher environmental-friendliness. 

Firstly, many states are transitioning to more renewable sources, which feed directly into your home. Some energy providers now offer this in their packages, so it’s always worth asking if you’re interested in using renewables. If you’re looking to put solar panels on your roof to power your home through the sun, they won’t be compatible with gas-powered heating system.  

If you already have a gas system in place, there are still things you can do to lower your impact on the environment (as well as your quarterly bill): 

• Setting the thermostat between 18°C and 20°C. Every additional 1°C can add 10% to your heating bill
• Using zoning to only heat the rooms you need
• Cleaning the filter every month while it's in use
• Winterproofing your home to reduce heat loss and help your heating to work more efficiently
• Investing in insulation for your roof and walls 
• Add more layers. It’s a lot cheaper to put on your cute jumper than to heat up a whole room 

*Cost and prices in this article are indicative and should only be used as a guide. They also vary locally and are subject to market forces.

You might also like: 10 hot tips to get your home ready for winter