With energy bills continuing to rise, many Melbourne homeowners are asking the same question in 2026: is it finally worth replacing gas heating?

For most homes, the answer is increasingly yes.

Gas heating used to be the cheaper option, but that’s changed. Gas prices have climbed year after year, and older systems are becoming expensive to run and unreliable to maintain. Many households are paying hundreds of dollars each winter just to stay warm, often with uneven heating and ageing ducted systems.

Modern electric heating and cooling systems work differently. Instead of burning gas, they move heat efficiently using electricity. High-efficiency split and ducted reverse-cycle systems can deliver the same comfort using far less energy, which is why many Melbourne homes see noticeably lower running costs after switching.

Rebates are another key reason 2026 is a smart time to upgrade. Victorian Energy Upgrades (VEU) rebates are strongest when you replace old gas heating with efficient electric systems. For eligible homes, these rebates can reduce upfront costs by thousands, making the switch far more affordable than many people expect.

There’s also a practical benefit. Gas heaters often fail without warning, usually in the middle of winter. Replacing your system before it breaks means you avoid emergency installs, rushed decisions, and higher costs. You also gain cooling from the same system, cutting summer bills at the same time.

That said, replacing gas heating isn’t one-size-fits-all. The right outcome depends on your home’s size, layout, insulation, and how your household uses different rooms. A properly designed system makes the difference between genuine savings and disappointment.

So, is replacing gas heating in Melbourne worth it in 2026? For most homes facing rising gas bills, ageing systems, and access to VEU rebates, it’s one of the smartest upgrades available.

At Smart Upgrades, we compare gas and electric options using real numbers, not pressure. We show you your exact rebate, your fixed price upfront, and what you’re likely to save over time—so you can decide with confidence.

Think Smart. Save Big.