What is the Most Cost-Effective Heating for a Home in Australia

What is the Most Cost-Effective Heating for a Home in Australia

By Window Tinting In Residential

November 2, 2023

As the chill of winter descends across Australia, thoughts turn to how to keep our homes warm in the most cost-effective way. With rising energy prices and cost of living pressures, heating your home can feel like an expensive burden. But there are affordable options out there to keep you toasty without sending your bills skyrocketing.

In this comprehensive guide, we’ll break down the pros, cons and costs of the main home heating systems available in Australia. We’ll look at upfront costs, running costs, efficiency, and suitability for different home types so that we can find out what is the most cost-effective heating for a home in Australia.

An Image Of A Cost-Effective Hot Water Heater In A Factory.

What is the Most Cost-Effective Heating for a Home in Australia:

Air Conditioning – The Most Cost Effective Long Term

Reverse cycle air conditioning, also known as a heat pump, extracts heat from the outside air and pumps it indoors. It makes it extremely efficient compared to other heating methods. Air conditioners have higher upfront costs but are the cheapest to run long-term.

A medium-sized reverse cycle air conditioner costs around $1200 – $2000 to buy and install. Running costs are just $306 per year based on 6 hours of use per day for winter.

Over 10 years, you would spend approximately $4500 in total on purchase and running costs.


  • Cheapest running costs long-term
  • Cools as well as heats
  • Whole home systems available


  • High upfront cost
  • Need proper installation

Best for: Homeowners who can afford the initial outlay.

Gas Heating – A Mid-Range Option

Gas heaters remain moderately popular in Australia thanks to their lower upfront cost compared to air conditioning. But gas prices are rising, reducing the cost advantage over time.

A medium-sized gas heater costs around $500 – $1400 to buy. Running costs are approximately $237 for winter.

Over 10 years, you would spend about $3700 in total on purchase and running costs.


  • Lower upfront cost than air conditioning
  • No installation required


  • Running costs may rise with gas prices
  • Doesn’t cool as well as reverse cycle

Best for Homeowners with existing gas connections.

Portable Electric Heaters – The Budget Choice

Portable electric heaters are the cheapest option upfront, with prices from just $30. But they are the most expensive to run long-term.

Running costs are around $308 for winter based on 6 hours of daily use.

Over 10 years, you would spend approximately $3380 in total on purchase and running costs.


  • Very cheap to buy
  • No installation required


  • High running costs long-term
  • Only heat one room

Best for: Renters and budget-conscious buyers.

Other Heating Options

Wood fireplaces cost $1000 – $1500 for installation, with yearly running costs of $200 – $300 for firewood.

Hydronic heating uses water to heat the home. Systems cost $4000 – $12,000 installed, with yearly running costs of $790.

Ducted heating costs $5500 – $10,000 installed and $1220 per year to run.

While these systems have benefits, overall, they are more expensive than reverse-cycle air conditioning in the long run.

Tips for Choosing the Right Heater

  • Consider upfront cost vs long-term running costs
  • Choose the correctly sized system for your home
  • Look for energy-efficient models (high star rating for air conditioners)
  • Use draught sealing, curtains and rugs to improve efficiency

Making Your Heating More Affordable

Here are some handy tips to reduce your heating bills this winter:

  • Set the thermostat to 18 – 20°C
  • Only heat rooms you are using
  • Layer clothing and use electric blankets
  • Let sunlight in during the day, close curtains at night
  • Seal gaps around windows and doors
  • Consider a timer or smart thermostat
  • Service heaters annually for maximum efficiency

Frequently Asked Questions:

What is the most energy-efficient heating?

Reverse cycle air conditioners (heat pumps) are the most energy-efficient heating in Australia. Even low-rated models are cheaper to run than other heaters.

Should I get gas or electric heating?

Electric reverse-cycle air conditioning is generally cheaper to run than gas heating. However, gas heaters have lower upfront costs.

How can I reduce my heating bill?

Using draught proofing, curtains, thermostat settings and timers can improve efficiency. Only heating rooms you use also saves energy and money.

The Bottom Line:

So there you have it – a comprehensive guide to choosing the most cost-effective heating for your Australian home. With the right system and some energy-saving steps, you can stay cozy this winter without breaking the bank. Just remember to look at both upfront and long-term running costs when deciding which option is best for your budget and needs.

Emily Wright
Emily Wright

Left us a 5 star review

Emily Wright
October 22, 2023

Great quality service. Fred did an excellent job installing our house tinting.

Linda Mudryk
August 3, 2023

Absolutely tickled pink with our window tinting for our western facing bedroom and office. Thanks for your efficient and professional work

Rodney Trevor
March 2, 2023

Getting tinting for our home was a very easy process from start to finish. Liz was very professional, friendly, knowledgeable and efficient. The cost was good and the process was explained very well.

Kara Skene
February 18, 2023

Ben was professional and easy to deal with. Liz installed our tint very quickly and was lovely to deal with as well. Really impressed with the end result, the glare and heat in our home from the western sun is gone. highly recommend Eclipse Tinting.

Brendan Jarvis
January 31, 2023

Ben and his team did a great job. Good price good service good product. Thanks again Ben

Cheryl Green
January 31, 2023

Fred was so friendly and helpful and did a great job. Eclipse tinting were amazing. Quote provided, questions answered quickly. Just awesome customer service and very happy with the outcome

Jac Nolan
November 20, 2022

Had tinting done by Eclipse this week and love the result! Thanks Fred and Ben!

Lucia Gray
November 7, 2022

Really fantastic service and a great quality product. Ben and his team are friendly, reliable and have done an excellent job installing our window tints. We have already noticed a difference in how hot our house gets through the day and are enjoying more privacy thanks to the darker windows. Would definitely recommend.

Cesar Junior
November 6, 2022

Ben was very friend and easy going. Thank you for be so easy to deal with :) Fred was the one who isntalled the tint, samr thing very friend and helpful. The wait worth for the service :)

Judy Cullinane
November 2, 2022

Ben Howard and his team were both professional and affordable. Great service with follow up email of date and time. Reminder text message was great. They removed the old tint and completed my job with no mess and the windows look great. I strongly recommend using them.

Lynda Hall-Watson
October 22, 2022

Very good customer service. Ben was awesome. The installation was done to perfection by an experienced expert and I could not be happier

Kel Ann
October 21, 2022

The service from start to finish was professional and completed on time. Ben was friendly and very helpful with my decisions

Kath Ledgard
October 20, 2022

Totally happy with service from Eclipse Tinting, Fred was prompt, friendly and professional. Great value for money, would recommend 💯

Tony Thomas
October 18, 2022

Very good customer service, prompt, professional and at a well priced. They had no problem competing with companies that were closer. The installation was done to perfection by an experienced expert. They deserve their high ratings.

Oliver Chambers
October 16, 2022

Tinting and frosting look great and both Ben and Fred were excellent.