KEY POINTS
- Running a gas heater over winter can add between $146 and $364 to your household bills.
- Electric heaters can also prove costly to run during the cooler months, adding anywhere between $117 and $247 to energy costs.
- Reverse-cycle air conditioners are cheaper to run than gas or electric heaters over the winter period in hot climate zones, like Brisbane and Darwin.
This Canstar Blue article is designed to help customers better understand their electricity and gas usage for this coming winter.
This guide has running cost calculations for different types of heaters, including gas, electric, radiant, oil column and panel heaters (plus reverse-cycle air conditioners). We also explore which type of heater might be best for your home and what you can do to reduce your power bills this winter.
On this page:
- Winter heater running costs
- Gas heater running costs
- Electric heater running costs
- Reverse-cycle air conditioner running costs
- How to calculate heater running costs
- Which type of heater is cheapest to run?
- What is the difference between gas and electric heaters?
- How to save on energy this winter
- Compare electricity prices
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid energy network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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9% Less than reference price |
$1,651 Price/year (estimated) |
Go to Site |
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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15% Less than VDO |
$1,260 Price/year (estimated) |
Go to Site |
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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|
10% Less than reference price |
$1,888 Price/year (estimated) |
Go to Site |
Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4011kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
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6% Less than reference price |
$2,036 Price/year (estimated) |
Go to Site |
Winter heater running costs
While winter heating costs are subjective, we’ve done our best to outline how much each type of heater will set you back. Keep in mind these pricing calculations are indicative only and may not be correct to your specific circumstances.
Gas heater running costs
To calculate the running costs of gas heaters, we will assume an average gas usage rate specific to each capital city. For simplicity, we also assume the heater is operating at its maximum capacity. To determine the costs added to your energy bill over winter, we will assume the heater is used for three hours a day over 90 days (approximately three months of winter). Finally, we assume usage costs are based on an annual gas usage of 24,900 Megajoules (MJ).
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| Room size | Capacity | Average hourly gas consumption (MJ) | Total consumption (MJ) | Brisbane | Sydney | Adelaide | Perth | Melbourne | Hobart |
|---|---|---|---|---|---|---|---|---|---|
| Small | 2.9-4.2kW | 15 | 4,050 | $211 | $149 | $150 | $162 | $146 | $219 |
| Medium | 3.4-6.6kW | 20 | 5,400 | $281 | $199 | $200 | $216 | $194 | $292 |
| Large | 5.2-8.2kW | 25 | 6,750 | $351 | $249 | $250 | $270 | $243 | $364 |
Source: www.canstar.com.au – 30/04/2025. Average energy consumption figures based on a sample of convection and radiant-convection indoor gas heaters for the highest output level (for multi-level output). Usage cost estimates based on average gas usage costs – 3.7c/MJ in Sydney, 3.6c/MJ in Melbourne, 5.2c/MJ in Brisbane, 3.7c/MJ in Adelaide, 4.0c/MJ in Perth, and 5.4c/MJ in Hobart. Average usage costs are based on rates on Canstar’s database available for an annual usage of 24,900 MJ. General guide only.
Running a gas heater over winter can add between $146 and $364 to your household bills, depending on circumstances, such as your location, room size and heater capacity.
Gas costs have also generally increased in the last 12 months, adding further strain to household budgets. Although customers in Perth are paying less than last quarter, customers in Brisbane, Sydney and Melbourne are paying more for gas heater costs than they did the previous year.
Electric heater running costs
To work out the running costs of electric heaters, we will assume an average electricity usage rate specific to each capital city. Again, we assume the heater is operating at its maximum output for three hours a day over a 90-day period. We’ve also assumed an average hourly electricity consumption (kWh) for each type of electric heater.
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| Type | Average hourly electricity consumption (kWh) | Total consumption (kWh) | Brisbane | Sydney | Adelaide | Melbourne | Hobart | Canberra |
|---|---|---|---|---|---|---|---|---|
| Radiant Bar | 2.1 | 567 | $183 | $191 | $247 | $137 | $157 | $168 |
| Ceramic | 1.8 | 486 | $157 | $164 | $212 | $117 | $135 | $144 |
| Fan | 2.1 | 567 | $183 | $191 | $247 | $137 | $157 | $168 |
| Oil Column | 1.8 | 486 | $157 | $164 | $212 | $117 | $135 | $144 |
| Panel or Convection | 2.1 | 567 | $183 | $191 | $247 | $137 | $157 | $168 |
Source: www.canstar.com.au – 22/04/25. Average energy consumption figures based on a sample of indoor electric heaters across heater type for the highest output level (for multi-level heaters). Electricity usage cost estimates based on average electricity usage costs – 33.7c/kWh in Sydney on the Ausgrid network, 24.2c/kWh in Melbourne on the Citipower network, 32.3 c/kWh in Brisbane on the Energex network, 43.6c/kWh in Adelaide on the SA Power Network, 27.7 c/kWh in Hobart on TasNetworks and 29.7c/kWh in Canberra on the Evoenergy network.
Much like gas heaters, electric heaters can also prove costly to run during the cooler months, adding anywhere between $117 and $247 to energy costs depending on the type of heater.
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Oil heater running costs: do oil heaters use a lot of electricity?
Oil heaters generally use less energy than the other electric heating options shown above. An oil column heater tends to consume around 1.8kWh of electricity per hour, which is slightly less than radiant, fan, panel or convection heaters.
Are oil heaters cheap to run?
While oil heaters aren’t necessarily cheap to run, they’re generally much more cost-effective than other electric heater types, such as panel or radiant bar heaters. On average, using an oil heater for three hours per day in winter will add an extra $117 to $212 to your energy bill, depending on your location.
Reverse-cycle air conditioner running costs
There are three bands (cold, average and hot) of energy ratings for climate zones in Australia. For example, Melbourne is in a cold climate zone, Sydney is an average climate zone and Brisbane is in a hot climate zone. Each climate zone assumes a different average annual energy consumption. In the table below, we assume a standard annual electricity usage of 4,373kWh.
Average annual air conditioner running costs (Reverse-cycle, non-ducted, single split system, small room).
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| Climate zone | City | Average usage rate | Cooling | Heating |
|---|---|---|---|---|
| Hot | Brisbane | 32.3 c/kWh | $259 | $21 |
| Darwin | 28.1 c/kWh | $225 | $18 | |
| Average | Sydney | 33.8 c/kWh | $93 | $145 |
| Adelaide | 44.1 c/kWh | $121 | $190 | |
| Perth | 30.8 c/kWh | $85 | $132 | |
| Cold | Melbourne | 24.3 c/kWh | $42 | $282 |
| Hobart | 27.7 c/kWh | $48 | $321 | |
| Canberra | 29.7 c/kWh | $52 | $344 |
Source: www.canstar.com.au – 24/04/25. Average energy consumption figures based on air conditioners listed in the Commonwealth of Australia E3 Program’s Registration database. Average electricity usage rates are based on single-rate, non-solar only plans on Canstar’s database, available for an annual usage of 4,373 kWh. With the exception of Perth which is based on the Synergy Home Plan (A1) tariff and Darwin which is based on the government regulated rate. Climate zones based on the Zoned Energy Rating Label for air conditioner models imported or supplied after 1 April 2020.
According to our calculations, reverse-cycle air conditioners were cheaper to run than gas or electric heaters over the winter period in hot climate zones, like Brisbane and Darwin. However, running the air conditioner for heating in cooler climate zones could be a costly decision. Other variables, such as personal usage habits and rates, will impact your personal winter energy running costs.
How to calculate heater running costs
To calculate your heater’s running cost, look for a label that describes its capacity or input energy requirement. You will also need to have a recent energy bill available to check what usage rate you’re paying for electricity or natural gas. Alternatively, you can find your usage rates by checking your electricity retailer’s energy price fact sheets.
Once you have this information, you can estimate your heater’s running usage costs by multiplying its input requirement by your energy usage rate. For example, let’s say an electric fan heater consumes 2kW of electricity. With a usage rate of 30c per kWh, the running cost is, therefore, 60c per hour (2kWh x 30c).
Which type of heater is cheapest to run?
Below is a list of the different types of heaters and some of the pros and cons for each:
Electric portable heaters
Electric heaters are cheap to purchase, however they can be quite expensive to run. They are ideal for heating small spaces and should be used sparingly to avoid an eventual electricity bill shock.
- Oil-filled column heaters: These heaters use electricity to heat oil inside a sealed column. This heat is then transferred to the rest of the room. Column heaters take a little longer to heat up and some models unevenly distribute the warm air. Once the oil columns heat up they are quite efficient, making oil heaters cheaper to run than other types of electric heating. An oil heater’s low energy consumption makes this model ideal for long-term heating.
- Convection and panel heaters: These heaters draw in cold air, heat it using an internal element and disperse the warm air evenly throughout the room. Panel heaters are a type of convection heater that is generally light, extremely portable and sometimes even wall-mountable.
- Fan heaters: These are designed to blow hot air at a targeted location and can be perfect for individual use. They are cheap to purchase and cost relatively little to run.
- Tower heaters: These heaters are effective only within a few square metres, so they are most suitable for bedrooms or small living areas. Tower fans usually have a myriad of settings to suit different needs.
Reverse cycle air conditioners
Reverse-cycle air conditioners are an effective way to keep your home at a comfortable temperature during any season. They are available in a range of capacities between 3.5kW and 10kW.
It is important to find the right size for your home. If your system is too small, the system will struggle to effectively warm or cool your home. If the system is too large, you’ll have spent more than you needed on an excessively large system. Oversized air conditioners can reach temperature quickly, then turn themselves off and on again, resulting in increased electricity usage.
Finding the right air conditioner for your home depends on a range of factors, including ceiling height, window size, insulation and room size. For this reason, you should always get a quote from a professional before purchasing a new air conditioner.
As a general guide, the below table indicates what size air conditioner is appropriate for your home.
| Room size | Heating capacity | Cooling capacity |
|---|---|---|
| 9m2 | 3.2kW | 2.5kW |
| 25m2 | 4.3kW | 3.5kW |
| 30m2 | 3.7kW – 6kW | 3.5kW – 5.0kW |
| 40m2 | 6.0kW – 7.2kW | 5.0kW – 6.0kW |
| 45m2 | 7.2kW – 8.0kW | 6.0kW – 7.1kW |
| 50m2 | 8.0kW – 9.0kW | 7.1kW – 8.0kW |
| 55m2 | 9.0kW – 10.0kW | 8.0kW – 9.2kW |
Source: Air Conditioner Buying Guide, Harvey Norman.
It is also important to consider the energy efficiency star ratings. Reverse-cycle air conditioners usually have two different star ratings – one to represent cooling efficiency and one for heating. The more stars that an air conditioner has, the more energy efficient it is and the cheaper it will be to run. While energy efficient models are generally more expensive to purchase upfront, there will be potential savings in the long term.
Gas heaters
Gas heaters are more responsive and capable of heating large areas in a short time. The downside is that gas heaters are generally more expensive to purchase. They may also produce harmful waste gases such as carbon monoxide. As a result, Australian laws require most indoor gas heaters to have a flue installed to vent the dangerous gas. This reduces their portability.
Convection gas heaters draw in the cold air and heat it using a gas-powered element. The heater then evenly disperses this heat throughout the room. A convection-radiant element is similar, but the element is slightly more exposed. This results in more focused heating.
What is the difference between gas and electric heaters?
When comparing electric and gas heaters, gas heaters are cheaper to run but more expensive to buy. Whereas electric heaters are cheaper to buy, but more expensive to run.
Electric heaters can be less energy efficient, causing some energy bill blowout when used more frequently, however gas heaters can require an initial outlay of flue installation.
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How to save on energy this winter
Every degree warmer your heater is set, the more it is going to cost you – so you should set your heater as low as you comfortably can. Likewise, the longer that heater is running, and the more frequently it is turned on and off, the larger your energy bill will be.
Be sure to check all the windows and doors are closed to trap in the heat. If you have a reverse-direction ceiling fan, this can also be used to circulate warm air throughout the home. As hot air rises, a ceiling fan on a low setting or winter mode can boost heating effectiveness. Finally, make sure you don’t leave the heater running when no one is using it. Using the appliance’s timer can help your household avoid use at the wrong time, or to better utilise air conditioning at night.
Other ways to reduce your winter energy bill are:
- Using an electric blanket to optimise sleeping temperature
- Avoiding standby mode by switching off unused appliances
- Taking advantage of energy rebates and concessions
- Adding insulation to your home
- Upgrading your appliances to energy efficient models.
Finally, if you’re paying too much for electricity and gas, then you’re already paying too much for heating, no matter how energy efficient you are.
Compare electricity prices
If you haven’t compared energy providers recently, now is the time to find a better deal and reduce your energy bills this winter. You can get started by comparing electricity prices in your state via the Canstar Blue tool below.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Original reporting by Brendon O’Neill
Image Source: Vershinin89/Shutterstock
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