In Australia, heating needs can vary wildly, which is why the costs of heating can also be diverse. That’s why there’s no one-size-fits-all solution throughout the entire continent, with multiple heating technologies competing for the best solution for your energy bills. Let’s look at what technologies will work best for most areas.
Gas Heaters
Standard gas heating has the lowest estimated cost of installing central heating for your home, but it may not be the most efficient solution. While gas heaters can be fine for most areas in Australia, the variances in prices leave them less desirable for regions like New South Wales and South Australia.
Western Australian prices can vary wildly as well since gas prices and installation prices are all over the place. This might require more research if you’re dead-set on a gas heating system, so mileage may vary on the specifics of your gas company, access to the grid, and the prices your local installer will charge.
Note: Prices in the most expensive regions listed above can be as high as $410, almost twice as high as the lowest price options available in other regions. Even with micro-regional variances in these areas, the average prices can be far higher than with other technologies. They are most suitable for Victoria and Queensland, where gas costs have generally been lower.
Conversely, gas-based heating systems can still be a great option in the Australian Capital Territory, the Northern Territory, and Tasmania.
Conclusion
Gas heaters are still fairly prevalent in Australian homes. They certainly have their advantages, such as lower upfront costs, especially compared to heat pumps. However, the instability in pricing may reduce their leg-up over time (gas prices are currently predicted to rise globally).
Over 10 years, you would spend about $3700 in total on purchase and running costs. An average gas heater is priced between $500 and $1400 (supply only). The annual running costs are approximately $237 for winter.
Pros:
- The upfront costs are lower
- Lower installation costs
- Grid access is widely available
Cons:
- Gas prices may become volatile
- Only provides heating
Reverse-Cycle Air Conditioning or Heat Pumps
Reverse-cycle air conditioners (also known as heat pumps) are a great technology for keeping costs down, but they may not be the best solution for every home. While these can be expensive, they have the highest efficiency and lowest running costs given the right conditions.
So, what are some of the conditions where a heat pump may not be ideal? One instance is if your home is not properly insulated and has multiple zones where heat or cold air can easily escape the home. While air conditioners can still work, they will be less efficient and, considering the cost of installation, you may not get your money’s worth.
Note: Similarly, while reverse-cycle air conditioners work well in cold areas, they can become less efficient in extreme weather conditions. These may not be a major worry throughout most of Australia, but it’s still something worth considering just in case.
That said, they can be a great option for homes with higher gas prices. This makes them ideal for New South Wales, South Australia, and Western Australian, including some areas of Tasmania. Properties in these regions will also benefit from cooling since reverse-cycle air conditioners also produce cold air when needed.
Similarly, even if you want to opt for a year-round solution and are not concerned with the higher upfront cost, they can be an efficient cooling and heating system. This multi-functionality gives them an edge over heaters.
Conclusion
Reverse cycle air conditioning, also known as a heat pump, extracts heat from the outside air and pumps it indoors. It makes it extremely efficient compared to other heating methods. Air conditioners have higher upfront costs but are the cheapest to run long-term.
The average reverse-cycle air conditioner will cost you between $1200 and $2000 to buy and install (installation costs can vary based on the complexity of the design and whether it is air, ground, or water-sourced). Operating costs can be about $306 annually for 6 hours of use per day over winter. The costs will be higher if you also intend to use it during summer but here we’re only comparing it as a heating system.
Pros:
- Lower operating costs
- Multi-seasonal function
Cons:
- Higher upfront cost
- It may require complex installation
- It can be less appropriate for homes with inadequate insulation
Electric Heating
Electric heaters come in various forms, including ceramic heaters, convection heaters, and fan heating. Electric heating will generally vary in cost between $240 to $258.
These are a great option for homes in most regions and are budget-friendly. They cost less than gas heaters, generally requiring little to no installation.
Note: Electric heating can definitely be a great option in New South Wales and Southern Australia. However, it’s best to check whether this will be beneficial for your property based on its size, with larger properties requiring more powerful heaters.
The annual running costs of electric heaters are around $308 for winter based on 6 hours of daily use. However, over 10 years, you’ll spend $3380 in total on purchase and running costs, which can be a downside if you intend to use them extensively.
Pros:
- Cheaper purchase costs
- No installation required
Cons:
- High running costs long-term
- Not suitable for larger properties