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When the winter chill creeps into your home, what do you reach for? A cosy jumper? An extra blanket? Or do you bump up the thermostat and let your air conditioner do the work?

Here’s the reality, many Aussies don’t realise just how much their heating choices impact their power bills. And while comfort is key, you might be paying far more than you need to. Let’s pull back the curtain on winter heating. From the hidden costs of different heating options to the best air con settings for cold nights, we’re diving into the facts that could save you hundreds every year.

Heating Costs in Australian Homes

Unlike Europe or Canada, most Australian homes aren’t built to trap warmth. Builders focus on cooling, not insulation. So when winter sets in, the heat you pump into your home slips right out.

And guess who pays the price? You.

Across the country, people heat their homes with everything from gas and electric heaters to high-tech HVAC systems. But not all options are created equal. Some chew through energy like there’s no tomorrow—and others? They’re quiet achievers, delivering comfort without the cost.

Many of us assume that running the air conditioner in winter leads to high power bills. But this isn’t always true. In fact, you can stay warm without the shock of extra charges.

Research from Canstar Blue shows that using a reverse cycle air conditioner in winter costs less than most people expect. A modern unit that heats large rooms quickly only costs between 13 to 36 cents per hour to run.

Surprisingly, this is cheaper per hour than many common appliances. For example, a microwave can cost 28 to 53 cents an hour, a vacuum costs between 41 to 82 cents, and clothes dryers and irons can reach up to 82 cents per hour.

Gas Heater Costs

Installing a ducted gas heating system in Australia usually costs between $3,000 and $8,000, including both the unit and installation. Once it’s up and running, expect average operating costs to sit between 11 and 20 cents per kWh. That adds up to around $835 to $1,250 a year, significantly cheaper than reverse cycle heating, which can cost up to 30 cents per kWh.

Electric Heater Costs

Portable electric heaters use a lot of power. Heating a small space can cost roughly $330 yearly. Medium rooms go up to about $925, while large rooms can reach a steep $1,890 a year.
On top of that, electric heaters can be a fire risk. According to Fire and Rescue NSW, fires from heaters and electric blankets spike in winter. That’s another reason to consider safer and more energy-efficient options.

Air Conditioner (HVAC) Costs

Heating your home with an air conditioner is often cheaper and more efficient. AC units can also cool your home when summer hits, so they offer year-round use. Research shows it’ll cost the average Aussie about $249 to stay warm this winter. That’s across 90 days of heating. The most budget-friendly way to beat the chill? A reverse cycle air conditioner, it’s the cheapest and most efficient option by far.

Unlike gas and electric heaters that burn energy to generate warmth, a reverse-cycle air conditioner works differently. It pulls existing heat from outside and transfers it indoors to warm up your space. Pretty clever, right?

Of course, the cost of running one depends on two things: the system’s size and the room you’re trying to heat. The bigger the space, the more energy the unit will use.
And if you don’t already have one installed, the upfront cost can be steep. But over time, these systems often pay for themselves through lower energy bills.

Why Choose a Reverse-Cycle Air Conditioner?

  • All-in-one comfort: It heats in winter and cools in summer. No more dragging out different heaters or fans when the weather changes—just set the temp and enjoy.
  • Cleaner air indoors: Many models come with built-in filters that remove dust, allergens, and other nasties from the air as it circulates through your home.
  • Whisper-quiet operation: Reverse-cycle units tend to run more quietly than most gas or electric heaters, which means no more loud rattles or humming in the background.
  • Lowest running costs: Among all common heating options, reverse-cycle air conditioners are the most affordable to run. They use far less energy than portable electric or gas heaters, saving you money with every use.

Choose Smarter Heating This Winter

Winter shouldn’t feel like a battle between comfort and cost. With Your Local Tradesman, you can have both. Our Australian-made systems are designed for our climate and built to keep you comfortable all year long.

We have been dedicated to delivering exceptional plumbing, heating, and cooling services in Adelaide for the past 15 years. Want to know which system suits your home best? We work closely with trusted brands like Fujitsu, ActronAir, LG, Mitsubishi, Daikin, Panasonic, Samsung and Rinnai to design heating, cooling, and ventilation solutions that ensure comfort all year round. Give us a call on (08) 8246 3930 or browse our blog for more expert tips on staying warm and saving money.

5 June 2025

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