Are you confused about choosing a gas heater or a split system to keep your home warm when winter bites? Both systems are widely used in Melbourne’s homes to keep them warm as the temperature drops. They offer unique benefits and drawbacks, but when it’s time to make the final choice, the decision mostly depends on what is cheaper to run gas heater or split system?
This article walks you through a comprehensive cost comparison between a gas heater and a split system. It discusses all costs associated with the gas heater and split system, including purchasing systems, installation, maintenance and repair, and running costs. Reading this article will help you determine which system will be more friendly for your budget.
Understanding The Heating Systems
Before we dive deep into the cost comparison of gas heaters or split systems, let us understand these heating systems.
What is a Gas Heater?
A gas heater is a device that heats indoor spaces using natural gas or liquid propane gas (LPG). Different types of gas heaters include flued gas heaters, unflued gas heaters, radiant gas heaters, blue flame heaters, and convector gas heaters.
Gas heaters are highly efficient and quickly heat up the space.
Learn more about gas heaters here.
What is a Split System?
A split system consists of an indoor and outdoor unit. When a split system performs both heating and cooling functions, it is called the reverse heat cycle system. The heating and cooling in the split system depend on condensation of refrigerant, which absorbs heat or cold from indoor air and exchange it with the outdoor air. This working principle is known as refrigeration cycle or heat pump cycle.
Learn more about how split system air conditioners work and why they’re a smart choice for year-round comfort here.
Understanding The Costs Associated With Gas Heater And Split Systems
Before discussing the costs to run the gas heater or split system let us get a quick overview of upfront costs, maintenance and lifespan of these systems.
The costs associated with gas heater and split systems depend on many factors including size of system, outside temperature and usage. Here, we will share approximate costs for a medium-sized home in Melbourne, Australia.
Upfront Costs- Unit Cost and Installation
Gas Heater System:
Depending on the gas heater system’s size, the cost of different type of gas heater system is enlisted below:
Type Of Gas Heater System | Est. Cost |
Basic unflued gas heater | $400 – $1,000 |
Flued gas heater | $1,200 – $2,200 |
Installation cost for both system are:
Type Of Gas Heater System | Est. Cost |
Gas connection (if not already available) | $1,000+ |
Flued gas heater | $1,200 – $2,200 |
Split System:
The split system price increases with the size of the system technology (inverter/ non-inverter) and presence of advanced features. The average costs for unit and installation of a split system is:
Unit price (2.5kW – 7kW models) | $800 – $2,500 |
Installation | $600 – $1,200 |
Maintenance And Lifespan
Gas Heater:
The cost for gas heater maintenance in Melbourne ranges from $150- $300 AUD for standard services. The additional costs for carbon monoxide (CO) alarms range from $50-$150. Costs also increase if your gas heater system needs part replacement. Replacement parts can cost somewhere between $50- $300 or more depending on the nature of required repair services.
- A gas heater can last up to 10-15 years.
- It requires annual maintenance services to maintain efficiency and check for carbon monoxide leakage.
- Owners must keep the filters and flues clean.
Split System:
The basic split system services in Melbourne range from $170- $250 per unit. More comprehensive deep cleaning may cost up to $300 per unit.
- If properly maintained, a split system can last 15-20 years.
- A split system requires frequent filter cleaning and professional maintenance services to safeguard the internal system and maintain efficiency.
- The split system is safer to use as compared to a gas heater as there are no risks of gas leakage.
Requesting emergency services can increase the service charges by 20% – 50%, depending on your service provider.
Running Costs Of Heating Systems
Although upfront costs and maintenance charges impact selection, running costs have a major influence. Heating system running costs depend on energy costs and the system’s energy efficiency.
Before we look into the energy charges and unit consumption by each heating system, we must consider some other factors that influence the overall running cost of the heating system and help you decide what is cheaper to run: gas heater or split system?
These factors include:
Climate:
The decision to select the cheapest heating system highly depend on the climate of where you live.
- If your residence area has mild winters you need a system that heats up quickly and requires less energy, such as a split system.
- If your residence area has a very cold climate with temperature falling below zero, you require more consistent heat regardless of outside temperature. Gas heaters are more suitable in such areas.
Usage Pattern:
Usage pattern, that is, whether you use the heating system continuously or occasionally. If you use a heating system continuously you should consider a split system due to lower energy charges and inverter technology and gas heater if you use it for a short time.
Environmental Impact of the Heating System:
Gas heating systems use natural gas as an energy resource, which produces carbon monoxide when burned. This nonrenewable resource contributes to greenhouse gas emissions.
A split system uses electricity, which can be produced using environmentally friendly resources or paired with solar panels to reduce the environmental impact.
Safety Considerations:
Gas heaters have safety risks as they emit carbon monoxide indoors. You must install CO detectors to monitor indoor CO levels, which should not exceed the optimum levels. There are no such safety issues associated with the split system.
Gas Heater Running Costs
On average, the gas heater consumes 20–30 MJ per hour. Depending on the gas distributor and specific tariff structure, the gas charges in Melbourne are 3.0 and 4.0 cents per MJ, inclusive of GST. If we consider this energy consumption and per-unit charges, it will cost between $0.60 – $1.50/hour, depending on the model and size.
Split System Running Costs
Energy-efficient split system units consume ~0.5 – 2.0 kw/hour, depending on capacity and use. In 2025, the per-unit electricity charges in Melbourne for residential customers ranged from about 25.75 to 36.17 cents per kWh. So, depending on the energy efficiency of the system, running a split system can cost between $0.15- $0.60/hour for heating.
What Is Cheaper To Run: Gas Heater Or Split System? The Cost Analysis Summary
Factor | Gas Heater | Split System |
Upfront cost | Depends on gas heater type. Lower for unflued type only or with existing gas connection. | Unit price is moderate to high depending on size, brand and advanced features. |
Running cost | Moderate–High | Low |
Efficiency | 70–90% | 300–500% (COP 3–5) |
Per unit charges | 3.0 and 4.0 cents per MJ | 25.75 to 36.17 cents per kWh |
Running cost per hour | $0.60 – $1.50/hour, depending on the model and size. | $0.15 – $0.60/hour |
Maintenance | Requires regular services. Per unit charges $150- $280 | Minimal maintenance requirements. Per unit charges: $170- $300 |
Lifespan | 10-15 years. | 15-20 years. |
Unsure about which heating system will help you keep your home warm during winter, contact Surrey Air, your reliable heating and cooling services provider in Melbourne. Our experts will listen to your concerns and suggest the best solution that fits your budget. We offer budget-friendly installation, maintenance and repair services for gas heaters and split systems so you can lower the upfront costs or keep your systems in shape without breaking your bank.
Final Verdict
The most influential factor in determining if one should use a gas heater or split system depends on the question- what is cheaper to run: gas heater or split system. Although upfront costs and maintenance, and repair costs make a difference, running costs have a greater impact onthe budget.
You can calculate the per-hour running costs of a heating system by considering the per-unit energy charges in your area, energy consumption, and energy efficiency of the system. Other factors like the area’s climate, usage pattern, environmental impact of the heating system in use, and safety considerations also affect the total costs.
Gas heaters are more budget-friendly in terms of upfront cost than split systems, but the running costs of split systems are lower than those of gas heaters. Gas systems are also more budget-friendly in terms of maintenance and repairs. They also have a longer lifespan, which adds to total savings.
