Schemes pay for the energy a new system saves, and a gas tank was already using less electricity than an electric one. So the discount for replacing gas is smaller: about $560↗ in Victoria against about $630↗ for electric, and up to $330↗ in NSW against up to $640↗.
Most households replacing gas are not doing it because the tank died. They are doing it because they are getting off gas altogether, or because the connection fee on a bill that covers one appliance has stopped making sense. That is a different decision from an emergency swap, and it deserves the real numbers.
Victorian figures are installer-reported for the VEU discount and move with certificate prices. NSW figures are official Energy Savings Scheme maximums. The Solar Victoria rebate sits on top of the Victorian figures and does not depend on the fuel you are replacing.
Show these figures as a table
| Item | Figure |
|---|---|
| VIC, replacing electric | about $630 |
| VIC, replacing gas | about $560 |
| NSW, replacing electric | up to $640 |
| NSW, replacing gas | up to $330 |
Victoria still has the second rebate
The Victorian Energy Upgrades discount shrinks when you replace gas, but the Solar Victoria rebate of up to $1,000↗ does not care what you are replacing. If you pass its income, property and owner-occupier tests, the bulk of the Victorian reduction is still available to you.
The work is bigger than a like-for-like swap
A gas unit hangs on a wall with a gas line and a flue. A heat pump is heavier, needs air around it, and needs its own electrical circuit. A straightforward like-for-like swap takes 2–4 hours↗; this is not that job. Budget for an electrician's attendance, and ask whether the switchboard has a spare way on it, because a full board upgrade is the expensive surprise in this work.
You also need somewhere to put it. Heat pumps sit outside, make a noise like a small air conditioner, and need clearance around the fan. If the old gas unit was tucked into a narrow side passage against a neighbour's bedroom wall, that spot may not suit.
What you are comparing against
A replacement gas system is not expensive: gas storage installs for $1,200–$3,000↗ and continuous flow for $1,500–$3,000↗, against $3,000–$5,200↗ for a heat pump before any rebate. On upfront cost alone, like-for-like gas usually wins. The case for switching is made on running costs and on the future of the gas connection, not on the installation invoice.
Questions worth asking before you commit
- Is gas the only thing left on this connection? If the cooktop stays, the standing charge stays.
- Where will the unit physically sit, and how far is that from the switchboard?
- Which discount is in the quote, and is it the gas figure or the electric one?
- Who caps the gas line, and is that price in the quote?
Figures are current at the date shown under each source. Certificate-based discounts move with the market, so confirm today's amount with an accredited installer. Run your own numbers in the calculator.