Winter Heating Costs Explained – Electric vs Gas Heaters

Heating your home during winter is essential for comfort, but it can take a significant toll on your energy bills if not managed wisely. For Australian households, understanding the costs and benefits of different heating options is the first step towards staying warm without breaking the bank.

This guide will explore the running costs of popular heating solutions—electric heaters, gas heaters, and reverse cycle air conditioners—while sharing tips to help homeowners and energy consumers save this winter.

Understanding Winter Heating Costs 

The expense of running a heater depends on several variables, including the type of heater, your local energy rates, and how often you use it. On average, winter heating can add hundreds of dollars to energy bills over three months. Let's explore the specific costs associated with different types of heaters to help you make informed choices. 

1. The Costs of Gas Heaters 

Gas heaters are a popular choice for their efficiency and ability to heat large spaces quickly. However, costs vary depending on the capacity of the heater, the size of the room, and your location. On average: 

• Small rooms (2.9-4.2 kW): $142 - $198 over three winter months.
• Medium rooms (3.4-6.6 kW): $189 - $265.
• Large rooms (5.2-8.2 kW): $236 - $331. 

Gas prices fluctuate depending on your city, with Adelaide and Melbourne customers recently seeing slight reductions, while those in Brisbane, Sydney, and Perth are paying a little more than in previous years. 

• Pros: Quick heating, efficient for large spaces.
• Cons: Initial costs for some models can be high, and installation of flues may be required for safety. 

Disclaimer: Estimated heating costs are based on average energy rates as of 10^th March 2025. Actual costs will vary depending on your location, provider, and usage patterns. 

2. The Costs of Electric Heaters 

Electric heaters are affordable upfront and available in several types, including radiant bar, ceramic, fan, panel, and oil column heaters. However, they tend to be more expensive to run than gas heaters: 

• Running an electric heater for 3 hours daily can cost between $122 and $247 over three winter months, depending on the type and local electricity rates. 

Oil column heaters, while not necessarily “cheap,” are known to be one of the most energy-efficient electric options for long-term use. They generally consume 1.8 kWh per hour, making them less costly than radiant or fan heaters.

• Pros: Affordable to buy, versatile options for small spaces. 
• Cons: Can be expensive to operate for prolonged periods. 

3. Reverse Cycle Air Conditioners 

Reverse cycle air conditioners offer dual functionality for heating in winter and cooling in summer. They tend to be more cost-effective if you're in warmer zones like Brisbane or Darwin but may be costly in colder regions like Melbourne or Canberra: 

• Heating a small room in colder climates can start at around $145 for the winter season but can exceed $300 for medium to large spaces. 

It's important to choose the right size and energy-efficient model for your needs. More star ratings mean lower running costs.

• Pros: Year-round use, can be cheaper in warmer zones. 
• Cons: Higher upfront costs, requires proper sizing for efficiency.

Steps to Calculate Your Heater's Running Costs 

To estimate the running costs of your heater, follow these steps:

1. Identify Input Power: Check the label on your heater for its input power or energy consumption (e.g., 2 kW for an electric heater).
2. Find Your Energy Rate: Refer to your electricity or gas bill to note the usage rate charged by your provider (e.g., 30c/kWh for electricity or 3.6c/MJ for gas).
3. Calculate Running Costs: Multiply the input consumption by the usage rate.

• Example for Electric Heating: A 2kW fan heater running for 3 hours daily for 90 days at 30c/kWh would cost $162.

Calculation: 2 kW × $0.30 × 3 hours × 90 days = $162

This approach provides an estimate tailored to your circumstances.

How to Save on Energy Costs This Winter 

Heating costs can add up quickly, but a few simple strategies can help you save without compromising comfort: 

1. Set Your Thermostat Wisely: Reduce your heating by just 1°C to save roughly 10% on heating costs.
2. Trap the Warmth: Close doors and windows to keep heated air inside. Use draught stoppers for extra insulation. 
3. Use Timers Thermostatically: Limit heating to times when it's actually needed, such as early mornings or evenings.
4. Reverse Ceiling Fans: A ceiling fan set to reverse circulates warm air that rises back down, improving heating efficiency. 
5. Choose Efficient Heaters: Opt for energy-efficient appliances with high star ratings for long-term savings. 

If you're concerned about costs, exploring better energy plans is a great way to reduce overall expenses—keep reading to find out how.

Compare & Switch Energy Providers with Econnex 

Even with efficient heating habits, your energy rates play a huge role in your overall heating expenses during winter. If it's been a while since you compared energy deals, now is the time! 

With Econnex, you can: 

• Easily compare energy providers, rates, and plans across Australia. 
• Find options that may better align with your usage patterns and potentially reduce your bills.
• Switch seamlessly online with no hassle. 

Why pay more when switching may help you find a better plan? Many Australians have already started saving by switching energy providers through Econnex. 

Make this winter warm and budget-friendly!