A guide to energy efficient heaters in 2025

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Keeping your home warm is essential for getting through the winter months. But balancing your comfort in the cooler months with the inevitable rise in your energy bills can be difficult, especially if you’re unfamiliar with energy efficient heating.

This Canstar Blue article has some tips on saving on winter heating costs, as well as info on the most energy efficient heaters in 2025.

Different types of energy efficient heaters

Choosing the right type of unit to heat your home can be based on a variety of factors, like area space and the number of people in the household. 

Here is a list of the most common heater types in Australia:

• Fan heaters
• Gas heaters
• Radiant heaters
• Oil-filled heaters
• Ceramic heaters
• Convector heaters
• Electric fire heaters
• Reverse cycle conditioners

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What is the most energy efficient heater in Australia?

The most energy efficient heater in Australia for your needs depends on a variety of factors, such as the room size you’re looking to heat, the type of heater, the fuel it uses and how long you’re going to use the heater on average. Some of the best-rated heaters for energy efficiency are from brands like SPT, Midea, Actron Air and Haier.

What is the most energy efficient electric heater?

The energy efficiency of electric heaters will vary depending on various factors. It’s important to research any heater that you are interested in purchasing and comparing the output against similar models.

To give you an idea of where you can start comparing, Canstar Blue has listed some examples from the latest Canstar Blue survey results for portable heaters:

• Dyson Purifier Hot+Cool™ Gen1 HP10
• Goldair Platinum 2400W Smart Wi-Fi convector heater
• DeLonghi Dragon4
• Kambrook 2000W ceramic tower heater
• Arlec CEH253 tower heater
• Kogan portable oil heater

If you would like more information on heaters, specifically portable heaters, check out Canstar Blue’s report on the best-rated portable heaters.

Energy efficient reverse-cycle air conditioners

The Energy Rating website claims that reverse cycle air conditioners are more efficient than standard electric heaters. Energy Rating suggests that the highest-rated reverse-cycle models are:

• SPT
• Haier
• Rinnai
• Midea
• Actron Air 
• Galaxy Air     

Each of these air conditioning models is rated based on both heating and cooling energy efficiency, and ranges from 3 out of 5 stars for heating and 7 out of 10 for cooling to 3.5 out of 5 for heating and 6.5 out of 10 for cooling.

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How does an energy efficiency rating work?

For most products, an energy efficiency rating is pretty straight forward – the more stars, the more energy efficient, and the more energy efficient, the cheaper it will be to run. However, for some heating and cooling units these ratings are a little different.

From March 2019, star ratings on heaters and coolers began showing climate ratings for energy efficiency, as opposed to the simple six-star method. The new methodology looks at the seasonal energy efficiency of the unit, in each of the three climate zones as determined by the government. Created to help Australians be more energy efficient, the new system takes into account the different climates of each of the three zones and determines the impact this has on some heating and cooling options, allowing customers to pick an appliance best suited to where they live.

Gas energy ratings still follow the original star rating methodology – the more stars, the more energy efficient the appliance. An example of a standard energy efficiency label for heaters or air conditioners is below.

Not all heating products are required to display an energy efficiency label, but air conditioners are generally required to display their ratings. The following air conditioners are not required to have an Energy Rating Label:

• Ducted*
• Evaporative
• Three phase*
• Water-to-air air conditioners
• Multi-split (units with several separate indoor units each with a separate control)
• Units with a rated cooling capacity (or for a heating only product, a rated heating capacity) of over 30 kWs

* These units can have a label voluntarily.

What are the different fuel types for heaters?

There are a few different types of fuel available to power heaters, some are more energy efficient than others. 

Fuel options for heaters include:

• Solar
• Electric
• Gas – natural or LPG
• Solid fuel – wood, coal, etc

The most energy efficient fuel type for a heater is solar, with natural gas or LPG coming in at a close second. Solid fuel options for the most part are quite energy efficient and affordable, however some solid masses will produce more greenhouse gasses than others. If you’re conscious of your carbon footprint, it’s best to research the fuel types first. Electric heaters are generally the biggest energy eaters in the winter time, due to their constant need for grid power.

How to find an energy efficient heater

This article is designed to help you figure out how to heat your home in the most energy efficient way. 

Here are some tips you may find handy:

1. Choose the most energy efficient heater

In most cases, you’ll find a figure in watts (w) or kilowatts (kW) indicating how strong your unit is. If you’re living somewhere particularly cold, a high-powered heater will be necessary, but for those in less harsh climates, a smaller, lower wattage heater could be something to consider.

Gas heaters and reverse-cycle air conditioners tend to be cheaper to run and more energy efficient than portable electric heaters. It’s often the case that the cheaper to run appliances have higher costs upfront. A sturdy air conditioning system is probably going to outlive a cheap tower heater, so it’s a good idea to do your own calculations to work out what’s best for you, your household and your energy needs.

2. Utilise the timer feature on your heater

Most standalone heaters and air conditioners will allow you to set periods of time in which your appliance will be operating without you having to turn it on. To avoid turning your heater higher in the mornings, you could set your timer to 15 minutes before you wake up, turning off at about the time you’d be dressed. Same goes at night – set your timer to switch off the heating an hour or so before bed.

3. Get the most out of the sun

In the middle of the day, when it’s warmest, open up any blinds and allow the natural heat of the sun to warm up your home rather than relying on the heater. Keep the air warm by avoiding having too many windows or doors left open.

4. Make sure your appliances aren’t old

Old appliances rarely run as efficiently as new ones, so if you have an oil column heater from a previous decade, it may be time to switch it out for a less power-draining model.

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Will switching to an energy efficient heater lower my energy bill?

Whether or not you save money will come down to your situation. There’s no point spending money on a new, more efficient heater if you’re going to overuse it and increase your energy bills. The size of your energy bill is not only caused by the heater you use; it comes down to a combination of the factors mentioned above.

Even the most energy savvy household will have a hard time seeing energy savings if they’re on an energy plan with high usage rates.

What else can I do to save money on heating?

If you’re looking to save even more money on your winter heating, try some alternative heating methods, like insulating your home, investing in an electric blanket or even stocking up on thick blankets and thermal clothing.

For more tips on how to save money on your heating bills this winter check out these seven easy tips to lower your electricity bill.

Lower your winter heating costs with a cheaper electricity plan

One of the most important contributors to lowering your electricity bill is to ensure you are paying the lowest possible usage rate for your energy plan. 

Below is a Canstar Blue table showing some of the cheapest energy plans on the market, where you can compare the usage rates with what you are currently paying. Typically, if you haven’t changed your energy plan within the last 12 months, you’ll be paying the default market offer, which tends to be more expensive than other plans.

Original reporting by Monika Gudova
Image Source: Mariia Boiko/Shutterstock

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