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.

OptionHow it worksGood forWatch out for
Wall split system (reverse cycle)One indoor head and one outdoor unit joined by refrigerant pipes; heats and coolsSingle living areas or bedrooms; lowest upfront cost per roomPlacement of the head for even airflow; outdoor unit noise; long pipe runs add cost
Multi-head split systemOne outdoor unit drives two or more indoor headsHomes with limited outdoor space wanting several rooms doneIf the outdoor unit fails, every room loses heating and cooling; sizing across heads
Ducted reverse cycleCentral indoor unit in the roof or under the floor; ducts and vents to each room; zonesWhole-house comfort with hidden equipment; new builds and renovationsHighest upfront cost; duct losses in hot roof spaces; zoning and return-air design matter
Floor console splitLow-mounted indoor unit blowing warm air near the floorRooms where heating matters more than cooling; under windowsTakes floor space; less suited to cooling large rooms
Gas ducted or gas space heaterBurns natural gas or LPG to heat air; no coolingExisting installations still working wellOngoing 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 tankReplacing electric storage or gas hot water; pairs well with rooftop solarNoise 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 daysSunny regions with good roof orientationRoof space and structure; frost protection; booster running costs
Electric storage water heater (resistance)Element heats a tank, often on a controlled-load tariffLow upfront cost, simple replacementHighest 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.