Reverse Cycle vs Gas Heating: Cost Comparison for Perth

If you’re weighing up heating options for your Perth home, the short answer is that reverse cycle air conditioning now undercuts gas heating on running costs in most situations, while gas can still have a lower upfront price for ducted systems.

Below is a practical, Perth-focused breakdown of what you’re likely to pay to buy, install and run each system, plus how to choose the right option for your home.

How each system works (and why it matters for cost)

Reverse cycle (heat pump) heating

• Uses electricity to move heat from the outside air into your home, rather than creating heat from scratch.
• Typically delivers 3-5 units of heat for every 1 unit of electricity used (COP 3-5), which is why running costs are so competitive.
• Provides both heating and cooling from the same system, ideal for Perth’s hot summers and mild winters.

Gas ducted heating

• Burns natural gas (or LPG) to generate heat, then distributes it through ducts.
• Efficiency is usually in the 80–95% range, meaning some energy is lost up the flue.
• Heating only; you’ll still need a separate system for summer cooling.

Upfront and installation costs in Perth

Reverse cycle (ducted)

• Typical installed cost for a whole-home ducted reverse cycle system in a 4×2 Perth home: around $10,500–$14,000 (mid-range brands, multi-zone).
• For smaller homes or single-zone ducted systems, expect roughly $8,000–$10,000, depending on capacity and zoning.
• Split systems (single room) are much cheaper: roughly $2,500–$5,500 installed, depending on size and complexity.

Gas ducted heating

• Typical installed cost for a gas ducted heating system in a 180 m² single-storey home: around $5,000–$8,300 depending on brand and quality (budget to premium).
• For many Perth homes, a mid-range gas ducted install sits near $6,000–$7,000 fully installed.
• Like reverse cycle, complex roofs, multi-storey homes or extensive ductwork will push costs higher.

What this means:

• For whole-home heating, gas ducted can be slightly cheaper to install than ducted reverse cycle, especially if you only need heating.
• If you also want cooling, reverse cycle often becomes better value overall because one system does both jobs.

Running costs: Perth-specific numbers

These figures use (July 2026) WA electricity and gas pricing and typical Perth usage patterns. Exact costs will vary by home size, insulation, thermostat settings and system efficiency.

Electricity and gas prices in WA (2026 context)

• Standard Synergy home electricity tariff: about 32.4 cents/kWh (as of July 2026 resets).
• Gas usage rates in Perth metro are generally competitive, but you still pay per MJ of gas used, and gas heaters are less efficient than heat pumps.

Typical running cost estimates

Reverse cycle heating (ducted or multi-split)

• Running cost for a reasonably efficient reverse cycle system in winter: about $0.25–$0.60 per hour of heating, depending on system size, settings and home insulation.
• For a typical Perth home running heating 4 hours/day over a 90-day winter:
  • Rough annual heating cost: $250–$400 for a well-sized, efficient reverse cycle system.
• With solar PV, daytime heating can be dramatically cheaper, sometimes only a few cents per kWh when your panels are covering the load.

Gas ducted heating

• Gas heating tends to cost around $0.40–$0.80 per hour for comparable heating output in many Australian contexts.
• Over a 90-day winter at 4 hours/day, a typical Perth home might see:
  • Rough annual heating cost: $350–$600+, depending on gas price, system efficiency and how warm you keep the house.

Government and independent analyses consistently show reverse cycle air conditioning as the cheapest heater to run across Australian states when you factor in efficiency and current energy prices. [ENERGY.GOV.AU]

Side-by-side cost comparison (Perth)

Which option makes more financial sense in Perth

Reverse cycle tends to win if:

• You want both heating and cooling from one system.
• You’re focused on lowest running costs over the life of the system.
• You have or plan to install solar PV, which can slash daytime heating costs.
• You’re in a typical Perth home with decent insulation and no extreme cold.

Gas ducted may still suit if:

• You only care about heating, already have a separate cooling solution, and want a slightly lower upfront cost for ducted heating.
• You live in a very large, poorly insulated home where you run heating constantly and prefer the “feel” of gas heating.
• You already have a gas connection and ducting in place, making a replacement straightforward.

Over the life of the system, most Perth households will find that reverse cycle heating is cheaper overall, even if the initial install is a bit higher, because lower running costs and added cooling value add up quickly.

CHOICE:What’s the cheapest way to heat your home this winter?