What Is Ducted Gas Heating?

Ducted Heating Installation Cost Breakdown

The cost to install ducted gas heating can vary based on your location and how complex the setup is. Typically, installation ranges from $1,250 to $5,000, or about $60 to $100 per hour. More complex ductwork will raise the overall installation cost.

Labour costs vary by city and complexity of the project. Here’s a breakdown of average hourly labour rates for ducted gas heating installation across Australia:

However, total installation costs go beyond hourly labour and may involve multiple technicians like gas fitters, electricians, or heating specialists. Choosing a fully qualified installer can reduce the need for separate trades. 

If your home isn’t connected to gas mains, that also adds extra cost. 

Always prioritize quality over the lowest price and use a quality gas heating installation company rather than opting for the cheapest price possible. Improper installation often leads to future repairs or early replacement.

Factors that Affect the Ducted Heating Installation Costs

Here are the biggest cost drivers when it comes to ducted heating installation:

• House Size & Layout

 As expected, bigger homes or double storeys leads to a higher installation expense. Larger spaces demand a more powerful heater and a greater length of ductwork to ensure warmth reaches every area. While homes with two storeys need vertical ducting and need stronger systems to maintain even heating.

• Installation Complexity

In some properties, especially older buildings with limited access, installing ductwork is more challenging. This may involve extra labour or modifications, increasing the total bill.

• Ducting Material

Ducts are available in different materials, each with its own pros and cons. Whether you go for flexible, sheet metal, or fibreboard ducts, the type you select will have a significant impact on your budget.

• Brand & Model 

Just like with other appliances, the brand and model you select will affect the cost. Systems with higher energy efficiency (measured by the energy star rating) cost more initially, but the higher the star rating, the more cost-effective it will be to operate the system.

• Zoning & Added Features

Even if two systems have equal capacity, pricing can vary due to additional features. For example, a zoned system is more expensive but lets you individually manage rooms, increasing comfort and efficiency. So, always compare multiple quotes to find the right balance of price, features, and long-term performance.

• Cooling Add-on

Since gas ducted systems only provide heating, adding a cooling component will raise your upfront investment. The ducted heating and ducted cooling cost includes the price of an additional unit that enables year-round climate control using the same ductwork.

How Much is Ducted Heating Running Costs in Australia

This is where ducted gas heating really shines. Compared to reverse cycle or electric heaters, gas is far more cost-effective in most parts of Australia. As of 2022, the cost of warming your home using a ducted gas heating system ranges from approximately 11 to 15 cents per kilowatt-hour if you use natural gas, or around 17 to 20 cents per kWh if you’re using LPG. This is noticeably cheaper when compared to electric heating, which typically costs about 30 cents per kilowatt-hour.

• Natural Gas: 11c–15c per kWh
• LPG: 17c–20c per kWh

The yearly running expenses for a ducted gas heating setup can vary between $635 and $1,845, depending on the energy efficiency rating of the unit and the size of the property being heated.

This table shows the approximate annual cost of running ducted gas heating:

Remember that running costs of gas ducted heating systems vary by unit’s energy star rating, insulation, ceiling height, home size, and how often you use your system.

Compared to reverse-cycle electric ducted heating (30c/kWh), gas systems can save you up to 40% on your annual heating bills. This is because natural gas, as a fuel, is nearly half in rate than electricity. You will notice a significant reduction in energy bills after switching to ducted gas heating. This positions gas ducted heating among the most affordable heating solutions available.

But remember, running your ducted gas heating system for 8 hours daily year-round can still save you money compared to other heating options, as heating accounts for up to 60% of household energy bills, and makes a big difference to your budget. Higher energy star ratings significantly lower running costs. Brivis research shows that on average: A 4-star unit saves around $236 annually over a 3-star unit, while a 6-star unit saves up to $567. These savings can offset the higher initial cost of a more efficient gas heating unit.

How to Calculate Ducted Gas Heating Running Cost

To figure out the running cost of a ducted gas heating system, begin by identifying the system’s energy usage in Megajoules (MJ). Multiply this figure by the gas rate shown on your most recent gas bill to find out the cost per hour of running the system.

Most gas heating manufacturers provide energy usage in kilowatt-hours (kWh). To switch this to Megajoules, just multiply the kWh figure by 3.6.

Then, grab your current gas bill or check your state’s average gas prices. Find your rate per MJ and multiply that by the system’s MJ usage. The result gives you the hourly cost of operating your ducted gas heater.

Once you’ve got the hourly cost, calculate how much it will cost you each day by multiplying it by the number of hours you use the heater per day.

Next, take that daily cost and multiply it by the number of days per year you use the heater. If you’re unsure how often it runs, estimate based on the typical number of cold days in your region.

This final number is your estimated yearly cost to run your ducted gas heating system.

Don’t forget, gas ducted systems still need a small amount of electricity to power certain parts. This is because most modern units now use an electric ignition system instead of a pilot light, so factor in a little electricity use when calculating your total annual cost.

Running Cost: Ducted Gas Heating vs Reverse Cycle AC

Ducted gas heating is significantly more cost-effective than reverse cycle (split system) air conditioning. Gas systems cost around 11c–20c per kWh, depending on whether you’re using natural gas or LPG. In contrast, split systems cost about 30c per kWh.

Unlike electricity, gas becomes cheaper per unit with increased usage, making it ideal for larger homes. Overall, ducted gas heating provides better efficiency and lower annual running costs than electric split systems, especially in bigger properties.

Here is a handy guide to show the different yearly costs to run ducted heating systems in an average size 165m² home. The table below aims to compare annual running costs for ducted gas heating system and ducted split system heating.

Above table shows, gas wins on cost and comfort when heating large homes. Reverse cycle units are only cost-effective in smaller spaces or mild climates.

• Gas is significantly cheaper than electricity by a large margin, making ducted gas heating more cost-effective.
• Annual costs are based on 900 hours of winter use, with electricity at 27.7c/kWh and gas at 1.5c/MJ.
• Reverse-cycle split systems may seem cheaper, but they only heat single rooms.
• To match whole-home coverage, multiple units are needed for raising total costs.
• Ducted gas heating provides better efficiency and full-home warmth, making it more economical overall.

Simply put, an air conditioner unit will never reach the same level of efficiency and coverage that a ducted heating unit offers. 

Running Cost: Ducted Gas Heating vs Electric Heating

Ducted gas heating is far cheaper to run than electric ducted systems up to 2–3 times more affordable on energy bills. Gas heaters run on LPG or natural gas; both are cheaper than electricity.

• Gas heating costs: 11c–20c/kWh
• Electric heating costs: ~30c/kWh

Key advantages of gas over electric

• Lower installation costs
• Reduced long-term running costs
• Lower greenhouse gas emissions

Electric heaters (like ducted reverse-cycle air conditioners) are typically more costly to operate. Even with factors like insulation, ambient temperature, and zoning, gas remains the more energy-efficient and cost-effective choice for heating homes in Australia.

How Much Does Ducted Heating and Cooling Cost Combined?

Adding cooling to your ducted gas system (aka add-on cooling) will push your total system price to $6,000–$13,000.

The cost of ducted heating and cooling come with the benefits include:

• No need for separate systems
• Uniform airflow in summer and winter
• Sleek, central control

How to Reduce Ducted Gas Heating Running Costs

There are so many ways to reduce ducted gas heating running costs, below are key tips  to cut energy use effectively:

• Lower the thermostat: Set it between 18°C and 20°C, it’s warm enough without spiking your energy bills.

• Use zoning effectively: Only heat the rooms you use regularly. Avoid wasting energy on empty spaces.

• Turn off when not home: Don’t leave the system running while you’re out. Ducted systems heat fast, so there’s no need to keep it on all day.

• Improve insulation: Seal windows, doors, roofs, and floors to prevent heat loss and reduce system strain.
  Retain natural heat: Open curtains during the day to let sunlight warm your home. Close them at night to keep the warmth in.

• Schedule regular servicing: Get your unit checked at least once a year. A clean, well-maintained system runs more efficiently and lasts longer.

How Much Does It Cost to Clean Ducted Heating?

Dirty ducts reduce efficiency and can aggravate allergies, so it is important to clean a ducted gas heating system. The average cost is $250–$400 every 2 to 3 years is the going rate for ducted heating cleaning in Melbourne and other cities.

This includes:

• Duct vacuuming
• Grille & vent cleaning
• System health inspection
• Optional filter replacement

Is Ducted Heating Worth It in 2025?

If you want full-home warmth, better air quality, and lower running costs than electric heating, then yes, absolutely.

Ducted gas heating is especially suited for:

• Family homes
• Double-storey layouts
• Cold climate zones (like VIC and ACT)

And when you choose Powerband Electrical, you’re backed by professional installers, zoning specialists, and top-tier units from brands like Brivis and Braemar.

Get a Quote from Australia’s Ducted Heating Experts

Our friendly and professional team at Powerband Electrical want to ensure that all Melbourne’s homes can enjoy the luxurious comfort of ducted gas heating in cold seasons. We offer quick and easy consultations with an expert technician who will give you an obligation-free quote. We collaborate with the top heating firms in Australia, like Braemar and Brivis, to make sure that our clients get the most reliable installation.

Whether you need full installation, replacement, or a heating and cooling combo, we’ve got the experience and local knowledge to tailor a solution that suits your space and your budget.

• Free consultations
• Melbourne-wide service
• Trusted brands
• Upfront pricing

Request your quote today and keep your home warm, efficient, and future-proof.