What is reverse cycle air conditioning?

9 min read

What is reverse cycle air conditioning?

How reverse cycle air conditioning heats and cools, why it's so efficient, and how it performs in cold climates.

Short answer

Reverse cycle air conditioning is a heat pump that cools in summer and heats in winter by reversing the direction its refrigerant flows, and Australian units are 300% to 600% efficient, turning one unit of electricity into three to six units of heat. In 2026 a reverse cycle split costs about $1,500 to $4,800 installed and ducted reverse cycle $7,500 to $18,000, on a standard install.

Prices are estimates, not quotes (how we estimate them). Rebate rules checked September 2026.

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Reverse cycle is the Australian name for an air conditioner that heats as well as cools. Split systems, multi-heads and ducted systems can all be reverse cycle, and almost all of them now are.

The name describes the trick. The same refrigerant loop that pumps heat out of your lounge in January is run backwards in July to pump heat in. One machine, two seasons.

It is also, by the government's own measure, the most efficient way to heat a room with any fuel. That is the part most people do not expect.

How does reverse cycle air conditioning work?

Every air conditioner has two coils, a compressor and a refrigerant loop. One coil sits inside, one outside. The refrigerant absorbs heat where it evaporates and releases heat where it condenses. The compressor is the pump that keeps it moving.

In cooling mode the indoor coil is the cold one. It absorbs heat from the room and the outdoor unit throws it away outside. The federal YourHome guide describes it simply: in cooling mode the system absorbs heat from indoor air and releases it outside; in heating mode it absorbs heat from the outside air and distributes it around the room.

The part that makes it "reverse" is a reversing valve in the outdoor unit. When you press heat, the valve swaps the direction the refrigerant flows. The outdoor coil becomes the cold one, collecting heat from the outside air, even on a cold morning. The indoor coil becomes the hot one, and the indoor fan blows that heat into the room.

Cold outside air still holds plenty of heat for a heat pump to collect. That is the idea people find hardest to believe, and it is the reason the numbers below work.

Heat pump vs reverse cycle: what is the difference?

There is no difference. A reverse cycle air conditioner is an air-source heat pump. The Australian Government's YourHome guide says exactly that: a reverse cycle air conditioner is a type of heat pump that uses electricity to warm your home in winter and cool it in summer.

"Heat pump" is the international term and the one used in Europe and New Zealand. "Reverse cycle" is the Australian retail term. When a brochure says "heat pump split system", it means a reverse cycle split.

One thing to keep separate. A heat pump hot water system uses the same principle to heat a water tank. It is a different appliance, with its own rebates, and has nothing to do with your air conditioning.

How efficient is reverse cycle heating?

The energy.gov.au guidance puts reverse cycle air conditioners sold in Australia at 300% to 600% efficient. They can do that because they do not use electricity to make heat. They use it to move heat that is already outside.

The efficiency number for heating is called the coefficient of performance, or COP: the heat delivered divided by the electricity used. A COP of 4 means 4 kW of heat for 1 kW of electricity. Cooling has its own measure, the energy efficiency ratio, or EER. Both sit behind the star ratings on the Energy Rating label.

Heating options compared by efficiency
Heater typeHeat out per unit of energy inNotes
Reverse cycle air conditioner3 to 6 units of heat per unit of electricity (300% to 600%)The most efficient heater of any fuel type, per YourHome
Electric bar, panel or oil heater1 unit (100%)Every watt becomes a watt of heat, and no more
Gas heaterLess than the gas burnedLoses heat up the flue, or needs an open window if unflued; fans also use electricity
Evaporative coolerNo heatingCooling only
Efficiency figures from energy.gov.au and YourHome. Even 2 to 3 star reverse cycle units are significantly cheaper to run than other heating, according to YourHome.

Does reverse cycle heating work in cold climates?

Yes, with two caveats. As the outdoor temperature drops, there is less heat to collect and the unit works harder, so heating output and efficiency fall. And on cold, damp mornings the outdoor coil can frost over. The unit then pauses heating for a few minutes to defrost it, which is normal and not a fault.

Both problems are about choosing the right model. For Canberra, Hobart, the Victorian and NSW highlands, or anywhere with frosty winters, do this.

  • Read the heating star rating for the cold zone on the Zoned Energy Rating Label, not the cooling stars for the hot zone.
  • Ask for the rated heating capacity, and how much of it the unit still delivers at low outdoor temperatures. Good cold-climate models publish this.
  • Size for heating, not cooling. In a cold climate, heating is usually the bigger load.
  • Mount the outdoor unit where defrost water can drain away and the unit is not buried in snow drift or leaf litter.

City detail is on the Canberra and Hobart pages. If you get up to three local quotes, mention the frost; a good installer will size for your winter, not the brochure.

What does reverse cycle heating cost to run?

At about 32c/kWh, a modern 3.5 kW reverse cycle split costs roughly 15c to 25c an hour once the room is warm. A 7.1 kW living-area unit is about 35c to 50c. Whole-home ducted reverse cycle runs about 70c to $1.10 an hour depending on how many zones are open.

The thermostat matters as much as the machine. energy.gov.au says each extra degree of heating adds 5% to 10% to energy use. Set 18 to 20 degrees in winter; more on that in the best temperature for your air conditioner. For your own tariff and hours, use the running cost calculator.

Against gas, reverse cycle usually wins on running cost at 2026 tariffs, which is why Victoria offers a Victorian Energy Upgrades discount for replacing gas ducted heating. The current rules are on the Victorian rebate page, and a local quote will show whether it applies to your house.

Types of reverse cycle air conditioner

Reverse cycle system types and installed prices, 2026
TypeWhat it isInstalled price
Split systemOne wall unit, one outdoor unit$1,500 to $4,800
Multi-head splitTwo to five wall units, one outdoor unit$4,500 to $12,000
DuctedFan coil in the roof, vents in every room, zoned$7,500 to $18,000 typical house
Estimates for a standard install, supply and install, before rebates. A new circuit adds about $300 to $900 and a switchboard upgrade $1,000 to $3,500.

More on each: what is a split system, split vs ducted and the systems overview. Prices by size are in the split system cost guide and the ducted cost guide. For your own number, get up to three local quotes.

Reverse cycle vs split system vs refrigerated

These words get used as if they compete. They do not. "Split system" is a layout. "Reverse cycle" is a capability. "Refrigerated" is the Perth and Adelaide word for any air conditioner that uses a refrigerant loop, to tell it apart from evaporative cooling.

So a reverse cycle split system is a refrigerated air conditioner, in the split layout, that heats. If a quote says "refrigerated" or "split" and does not say "reverse cycle", ask whether it heats. The comparison with evaporative is in reverse cycle vs evaporative.

Want a number for your house? Check the rebate on your postcode. No name required. Check the rebate on your postcode.

Or do the sums yourself first: what size you need and what it costs to run.

Sources

FAQ

Common questions

What is reverse cycle air conditioning?

It is an air conditioner that heats as well as cools. It is a heat pump: in summer it moves heat from inside to outside, and in winter a reversing valve flips the refrigerant flow so it moves heat from outside air into the house.

Is a heat pump the same as reverse cycle?

Yes. A reverse cycle air conditioner is an air-source heat pump; heat pump is the international name and reverse cycle the Australian one. A heat pump hot water system is a separate appliance that heats water, not rooms.

Is reverse cycle air conditioning expensive to run?

No. It is the cheapest electric heating you can buy, at 300% to 600% efficient. A 3.5 kW split costs roughly 15c to 25c an hour once the room is at temperature at 2026 rates, and ducted about 70c to $1.10 depending on zones open.

Which is better, reverse cycle or split system?

They are not alternatives. A split system is a layout with an indoor and an outdoor unit; reverse cycle means it can heat as well as cool. The usual choice in Australia is a reverse cycle split system.

Does reverse cycle heating work when it is cold outside?

Yes. Heat pumps can still extract heat from cold outside air, though output and efficiency fall as it gets colder, and the unit will pause briefly to defrost on damp, frosty mornings. In cold areas, compare heating capacity and the cold-zone heating stars on the energy label.

Is reverse cycle cheaper than gas heating?

For most households in 2026, yes. Government guidance rates reverse cycle as the most efficient heater of any fuel type, and gas heaters lose heat through the flue. Victoria offers a discount for replacing gas ducted heating with efficient reverse cycle.

A quiet Australian living room

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