Heating, cooling and hot water options compared
Main system types for Australian homes compared on how they work, who they suit and what to watch for.
This table compares types of systems, not brands or providers. It is a starting point for deciding which quotes to ask for. Use the installation cost estimator for illustrative prices and the running-cost guide to compare operating costs.
Select a column header to sort.
| Option | How it works | Good for | Watch out for |
|---|---|---|---|
| Wall split system (reverse cycle) | One indoor head and one outdoor unit joined by refrigerant pipes; heats and cools | Single living areas or bedrooms; lowest upfront cost per room | Placement of the head for even airflow; outdoor unit noise; long pipe runs add cost |
| Multi-head split system | One outdoor unit drives two or more indoor heads | Homes with limited outdoor space wanting several rooms done | If the outdoor unit fails, every room loses heating and cooling; sizing across heads |
| Ducted reverse cycle | Central indoor unit in the roof or under the floor; ducts and vents to each room; zones | Whole-house comfort with hidden equipment; new builds and renovations | Highest upfront cost; duct losses in hot roof spaces; zoning and return-air design matter |
| Floor console split | Low-mounted indoor unit blowing warm air near the floor | Rooms where heating matters more than cooling; under windows | Takes floor space; less suited to cooling large rooms |
| Gas ducted or gas space heater | Burns natural gas or LPG to heat air; no cooling | Existing installations still working well | Ongoing gas supply charges; Victorian rules restrict new gas connections; no cooling |
| Heat pump water heater (integrated or split) | Refrigeration cycle moves heat from air into a water tank | Replacing electric storage or gas hot water; pairs well with rooftop solar | Noise near bedrooms; cold-climate recovery; tank size; STC and state rules change |
| Solar thermal water heater (electric or gas boosted) | Roof collectors heat water, with a booster for cloudy days | Sunny regions with good roof orientation | Roof space and structure; frost protection; booster running costs |
| Electric storage water heater (resistance) | Element heats a tank, often on a controlled-load tariff | Low upfront cost, simple replacement | Highest running cost of the electric options; usually not eligible for efficiency incentives |
Suitability depends on climate zone, insulation, house layout and tariff. Incentives for heat pump water heaters and efficient air conditioners are set by the Clean Energy Regulator (STCs), the Essential Services Commission and Solar Victoria (Victoria) and IPART under the NSW Energy Savings Scheme, and amounts change. Check cer.gov.au, solar.vic.gov.au and energy.nsw.gov.au before you rely on a figure.