10 Cheap Ways To Heat A House In Australia

14th May 2025

Budgeting Financial Help

Heating and cooling make up an average of 40% of Australian household energy usage, which makes it a huge percentage of your overall utility bill. Most Australians know to prepare for a big hit to their energy bill in summer when the AC’s working hard, but forget to budget for winter when the heater’s working just as much. If you’re in a bind with a bill you can’t manage, you can apply for a loan for bills to get you through. But to make sure you can handle the next bill, we’ve put together ten tips on cheap ways to heat a house, so you can stay warm and cosy all winter.
 

How to heat your home efficiently

Australian houses are notoriously hard to heat and they cost us lots of money to do it, seeing utility bills in winter skyrocket. Unlike European homes, Australian homes are often built with minimal insulation, leaving our houses cold during the cooler months, with any draughts from gaps around doors making things very chilly indoors.

Tip: If you are renting, you could ask the landlord to insulate the house or add solar panels, both of which also increase the home value. This will result in lower heating and cooling costs year-round.
 

Which type of heating is the cheapest to run?

You may think using a smaller heater will be cheaper, however, if you have a reverse cycle air conditioner (split system), these are far more efficient and therefore cheaper to run than any other type of heating.
 

What is the worst heater to use?

Cheap portable blow heaters are by far the worst offenders when it comes to energy use. What you save at the cash register, you will be paying back on your next energy bill. When looking for a heater, the more efficiency stars, the better! You can save hundreds of dollars every year by swapping out inefficient heaters and appliances. Sell your old ones for some fast cash and make an energy-efficient upgrade (or ask your landlord to install a reverse cycle for you).
 

Watts explained (Why more watts is not better)

A high-watt appliance will use more electricity. So, the higher the wattage on an appliance, the higher your electricity bill. Don’t be fooled by packaging boasting 3000W. In every case, the fewer watts, the better.

 

10 tips to save electricity and keep your house warm

Choosing energy-efficient methods for your home can help trap the heat inside long after you turn the heater off, saving electricity as the rooms will stay warm for longer. Take a look at our tips below.

1. Reduce the space you need to heat or cool

One way to save on heating is to only heat the rooms you are using – whether that’s the living space, bedrooms or kitchen. If you have a ducted reverse cycle system, set the zones to the areas you are using, and consider using a timer so you won’t forget to switch it off when you leave. Close the doors to rooms not in use, or use dividers to zone an open-plan area.

Avoid using the heater when you can. For example, if you are soon due to leave the house, turn the heater off, or set a timer for the hours you are going to be at home. That way you don’t leave the heater running all day, but it’ll still be warm when you arrive home. Automating your climate control means you are less likely to get a nasty surprise on your next bill!

 

2. Get curtains

A woman hangs teal curtains on a track trail

Aside from being a way to decorate your home and adding some privacy, curtains also serve a practical purpose when it comes to heating and cooling. Up to 40% of your home’s heat is lost out the windows, so keeping them covered can help manage temperature in both summer and winter. Layering curtains inside blinds allows cool air to be trapped at the window, rather than escaping into the room.

If you are in a rental with blinds but no curtains, consider mounting lightweight curtains using command hooks and some dowel. These are easy to remove at the end of the lease without leaving a mark.

3. Wrap up cosy and warm

Dressing for the weather is key, so add those warmer woollen layers, ugg boots, or a hat. Throw a cosy blanket on your couch and consider a rug or sheepskin for the dual combo of warmth and decor.

Each degree of extra heating increases your energy consumption by about 5 to 10%. So once you’re rugged up, you can heat your home to a comfortable level without making it feel like summer inside. That way you can be comfortable in your home without the pain of a high utility bill.

 

4. Move regularly throughout the day

An older couple do yoga in their living room with their dog lying between them

Moving your body warms you up, as any parent chasing after young children can attest! If you are working from home, get up from the desk and have a mini “exercise break”.

5. Enjoy hot meals and drinks

A warming meal or hot mug of tea works wonders at heating you up from the inside.

6. Get a draught stopper

Remember what we said about losing heat through your windows? Small holes or gaps can be the biggest culprits! Consider using draught stoppers or rubber door seals to cover the gaps on the bottom of your doors or windows. Your home will be more comfortable and you’ll save on electricity.

7. Use a wheat bag or hot water bottle

It’s tempting to switch on an electric blanket and leave it humming all night to stay warm. But opting for a wheat bag or hot water bottle instead can keep you just as warm and cosy, especially if you trap the heat under a thick blanket. Boiling the kettle once to fill up a hot water bottle uses a lot less energy than pulling an all-nighter with an electric blanket.

8. Bake a roast dinner

A woman wearing an apron pulls a roast dinner out of the oven

Ever found yourself drenched in sweat trying to cook a meal in the middle of summer? The same heat your oven gives off while cooking can be a blessing during winter! Using the oven is a great way to heat your home and make dinner at the same time. You get a hot tasty meal or a baked treat, plus a toasty warm kitchen.

9. Reverse your ceiling fans

Ceiling fans have summer and winter settings. When your fans turn clockwise at a slow speed, the blades push rising hot air down from the ceiling.

10. Follow the sun

A woman with her eyes closed and arms above her head stretches while soaking in the morning sunlight from her window

Up to 87% of your home’s heat can be gained through your windows. Open your blinds or curtains on sunny days to let the sunshine in, and warm the room at the same time.

Keep your home warm and bills within budget with these tips from Red Tree Finance

Keeping your home warm and comfortable is key for your health and your family’s well-being. Not turning on the heater might save on bills, but if you have small children at home it is best to stay warm using these energy efficiency tips.

These might come in handy for the future, but if you’re already dealing with an unexpected power bill, Red Tree Finance can help. Our loans for bills can help you tackle those repayments before they pile up and overwhelm you, giving you a chance to get ahead and prepare for the next one. Apply online today, or contact our friendly team for more information.

 

Frequently asked questions

What is the cheapest heater to run in Australia?

Reverse cycle air conditioners (heat pumps/split systems) are the most energy-efficient heating. Even low-rated models are cheaper to run than other heaters.

How can I warm up my house for free?

Letting the sunlight in, layering up with warm clothes or blankets, and blocking cold air draughts are some ways you can warm up for free.

How to heat a room in winter?

Simply shut all doors so that the room you want to heat is closed, and turn on your heater. A space heater is a good option for a small area, or you can use the ducted or reverse cycle unit in your home.

The information provided in this blog is of a general nature and is provided without considering your specific objectives, financial situation, or needs. It is intended for informational purposes only and should not be relied upon as financial, investment, or other professional advice.

Before making any financial decisions or taking action based on the information presented, you are strongly encouraged to assess its appropriateness in light of your individual circumstances. Red Tree Finance does not intend to provide personalised financial advice, and you should seek independent financial, legal, tax, and other relevant advice tailored to your unique situation.

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