Home heating is one of the biggest costs for any family or business, but there are ways to minimise the expense.

Gas consumption in Australia is falling faster than anticipated, with green energy from wind and solar sources having a big impact sooner than expected. The Australian Energy Marketing Operator (AEMO) stands by its previous warnings that a structural deficit in gas supply is due to emerge from 2028, which means less gas and higher prices.

There was an increase of 9.1% ($219 per year) for households and 7.1% for small businesses on July 1. The Australian Energy Regulator says the increase was necessary to reflect rising wholesale and network costs. The increase for central west and western NSW was the state’s highest. 

Source Sydney Morning Herald and AEMO

Further, gas is being phased as a source of energy in the home. Victorian and ACT governments have already banned it in new housing builds. Positive news is the federal government’s bill relief was extended for the 2025-26 financial year, and kicked in on July 1, with an additional $150 for each household and eligible small businesses.

What’s the solution?

There are some cheap and easy ways to heat your home, as well as long term savings to be had. Many changes don’t happen overnight as they involve investment. Research shows that electricity is better for you and your household’s health and budget. Those with gas in their house aren’t encouraged to turn off their connection straightaway, but make a plan to make a switch to an all electric future. This takes research and investment. Choices should be made on your household size, your budget, and encompassing future plans whether that be for solar panels, a battery or hot water heat pump etc.

What to do first

The best thing to save on energy is to make your home thermally efficient long term. This doesn’t have to be expensive. 

• Eliminate draughts: you can borrow a handheld thermal efficiency camera at the Orange City Library to identify the cold and hot spots in your home. It also shows where draughts are ‘leaking’ heat. These are often around windows and doors. Draught excluders and door snakes will be your best friend. Tape up gaps around windows with taps from a local hardware store. 
• Insulate your ceiling. If it is, ensure it’s all in place. Retrofit insulation underneath your home if there’s clearance. 
• Install curtains, peplums and blinds.
• Think about getting double or triple glazed windows and doors. You don’t have to do all of your house at once. Perhaps ones in the rooms you use the most? Again, research needed to ensure you’re getting the best buy.
• Rugs can provide some useful insulation on a hard floor and tiles.
• The humble bubble wrap can act like a layer of insulation similar to double glazing if stuck to your windows. It’s budget friendly and a great idea for renters.

Comparing gas to electricity

Per household third party advocate group Finder’s research shows the average winter bill is $249 ($2.48 per day). The average cost to use electricity is $241, compared to gas at $301. A reverse-cycle electricity system costs about half the price of the average gas system to run. However, it is a large outright cost compared to a cheap space heater. This is where planning comes in.

Source: Finder https://www.finder.com.au/energy/winter-heating-costs

But, what does all this mean when it comes to consumer choice? The following explains all the current available home heating options.  

Research from the state and federal governments and consumer advocate groups all mark gas down when it comes to safe, efficient and affordable home heating, with many negatives outweighing any positives. Like gas in the kitchen, harmful pollutants such as carbon monoxide, nitrogen dioxide and formaldehyde, are associated with respiratory problems including asthma, and potentially carbon dioxide poisoning. It can lead to lung cancer and other long term health problems as well. Environmental concerns include greenhouse gas emissions.

What’s available?

Space heaters:

These are portable and often used to heat small areas or rooms, they come in various forms like fan heaters, ceramic heaters, and radiant heaters. 

• Fan heaters use a fan to circulate heated air, offering quick warmth thus using a lot of energy. 
• Ceramic heaters produce fast and even heating. They can reach their target temperature very quickly and cool down just as fast, making them an energy efficient choice. 
• Convector heaters heat the air by convection, gradually raising the temperature of a room. 
• Oil-filled radiators have a heating element to warm oil, which then radiates heat, providing a gentle and consistent temperature. Given they retain heat, they are efficient to run.
• Radiant bar heaters: These heaters radiate heat (through infrared rays) outward generated from bars integrated into the heater. They heat objects not the air. They can also be used to heat large spaces, for example offices, classrooms, churches.

Baseboard heaters:

Mounted on walls, they provide consistent heat and are often found in older homes. 

Electric storage heaters:

These heaters store heat during off-peak electricity rates and release it when needed.

Underfloor heating:

Embedded in floors, these systems provide a uniform heating solution so can be expensive to operate.

Reverse cycle air conditioners:

These are highly energy-efficient, offering both heating and cooling. The outside unit essentially sucks in air, either warming or cools the air and it into a building, feeding it through ducts. They are the most energy efficient options on the market, especially considering how ducting works to heat different areas of your house. 

Hydronic heating:

Hydronic heating is a system that uses water to distribute heat, offering efficient and comfortable warmth without the need for forced air. It operates by heating water in a boiler (gas or electric powered) and then circulating it through a network of pipes to various heat emitters like radiators or underfloor heating. 

The systems have a high initial cost, yet are the most efficient to run. Systems on a gas boiler are more expensive. However, systems run on heat pumps make it a very efficient option.

What’s available?

Planning for the future involves a lot of research, plus asking your friends and community for advice. Renters face many issues when it comes to heating solutions, but can lobby their landlord or look for properties with better solutions next time. As mentioned, the initial installation price of appliances needs to be considered moving forward. This fact-checked research by Finder compares different 4 Star models of both gas and electric energy sources. 

If you’re looking to install, ensure you get at least three quotes when looking around the local market. There are mixed experiences using installers from out of town regarding solar panels and batteries. 

Please share with us your experiences and we may be able to help you based on our experience.
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