- Why Australian Homes Are Hard to Heat Efficiently
- What Is the Cheapest Heater to Run in Australia?
- Which Heaters Cost the Most to Run?
- Do Higher-Watt Heaters Cost More to Run?
- Frequently Asked Questions
While most people brace themselves for higher electricity bills in summer when the air conditioner is running around the clock, the cost of heating is often underestimated. Heating and cooling together account for about 40 per cent of household energy use, which means they can have the biggest impact on your budget.
The challenge is that many Australian homes are not built to withstand cold weather. Thin walls, limited insulation and draughts allow heat to escape easily, leaving you paying more for less comfort — especially in a rental property. It’s no wonder so many households feel it in their hip pockets when winter arrives.
The good news is that there are simple, affordable ways to stay warm without watching your bills skyrocket. From low-cost habits to smarter appliance choices, you can make small changes that add up to big savings. If you are already struggling with an overdue bill, a loan for bills can provide immediate support while you put these tips into practice.
These 10 cheap ways to heat a house in Australia during the cooler months can help to keep your budget on track.
Why Australian Homes Are Hard to Heat Efficiently
Many Australian houses are built with minimal insulation. Unlike homes in Europe, they often lack double glazing or effective sealing. This means heat escapes quickly, leaving rooms cold even while heaters work overtime.
Another challenge is draughts. There are often large gaps around doors, windows, and floorboards that allow cold air to creep in, making heaters much less effective. Identifying and blocking these leaks is one of the fastest ways to improve efficiency.
If you rent, you might ask your landlord about upgrades such as insulation, weather seals, or solar panels. These changes can reduce costs and improve property value, making them a worthwhile investment for both tenants and owners.
What Is the Cheapest Heater to Run in Australia?
Not all heaters are the same. Some appliances cost far more to run than others, even if they appear smaller or less powerful. That means cheap doesn’t always mean better.
Reverse cycle air conditioners, also known as split systems, are the cheapest option for most Australian households. They generate more heat per unit of electricity than portable heaters, making them consistently efficient. Many models can also be used in summer for cooling, spreading their value across the year.
If you’re shopping for a new heater, look closely at the energy rating. Higher-rated appliances may cost more upfront but deliver long-term savings. Choosing efficiency and lifetime value now means lower bills for years to come.
Which Heaters Cost the Most to Run?
Portable fans and heaters are among the least efficient appliances in Australian homes. They use large amounts of electricity but provide limited warmth, meaning they can add hundreds of dollars to a winter bill.
Other expensive options include electric bar radiators. These often heat unevenly and lack efficiency, particularly in larger spaces. You’ll save at the checkout, but you’ll lose out in the long run with higher energy bills.
Where possible, replace these appliances with a reverse cycle system or at least choose higher energy-efficient models. If you can’t make the switch right away, limit their use to short bursts and combine them with other low-cost heating methods.
Do Higher-Watt Heaters Cost More to Run?
Yes. Wattage indicates how much electricity a heater uses. For example, a 3000-watt heater running for three hours uses three times the energy of a 1000-watt unit. While packaging may suggest that more watts means better performance, in reality, it means higher bills.
When comparing appliances, balance wattage with efficiency. A lower-wattage heater with a high star rating is usually the best value, providing warmth without the shock of inflated energy costs.
10 Cheap Ways to Heat a House in Australia
Simple changes can make a big difference to the way you keep your house warm. By combining these 10 habits, you can keep your home warmer for longer and reduce energy costs during the cooler months.
1. Reduce the Space You Heat
Heating your entire home wastes money, especially if you only use certain rooms throughout the day. Larger open-plan spaces or unused bedrooms can draw heat away from the areas where you actually spend the most time. By focusing only on the rooms you need to heat, you give your heater less work to do and keep your costs down.
To make this work, close doors to unused areas and use zoning features on ducted systems. Timers are another smart addition to make sure heaters aren’t left running when no one is home. Even turning the heater off 30 minutes before leaving home lets residual warmth carry you through, reducing costs without sacrificing comfort.
2. Install Curtains to Trap Warmth
Windows are one of the biggest culprits for heat loss, with up to 40 per cent of a home’s warmth escaping through glass.
Layering sheer and blockout curtains or installing blinds on your windows can make a noticeable difference to the insulating properties of a room. If you are renting, try using dowels and command hooks to hang temporary curtains. You’ll be surprised by the difference that even a lightweight curtain makes to the temperature stability inside the room.
3. Dress for Warmth Indoors
It’s tempting to turn up the heat when you feel cold, but every extra degree adds around 10 per cent to your energy use. That can mean a significant jump in your quarterly bill. Dressing appropriately for the cooler months is one of the simplest ways to stay comfortable without touching the heater.
Think of your home as part of your winter outfit. Pull on jumpers, socks, or even an Oodie and add blankets to your couch or bed. By creating warmth through clothing and coverings, you can keep the thermostat lower and still feel cosy. This simple habit change saves money and makes heating a choice, not a necessity.
4. Keep Moving to Stay Warm
When your body is still, it loses heat faster, so get up and move around to stay warm. Regular movement not only keeps you warm but also boosts circulation and energy levels.
Take short 5-10 minute breaks throughout the day to stretch, walk around, or do light household chores. For those working from home, schedule “movement breaks” as you would a meeting. A quick burst of activity can raise your body temperature and make you less reliant on appliances to stay warm. It’s a win-win. You stay warm, save money and keep active in the process.
5. Warm Up with Hot Food and Drinks
Sometimes the best comfort comes from inside. Hot meals and drinks raise your core body temperature, creating warmth that lingers long after you’ve eaten.
Cooking at home has the added benefit of releasing radiant heat into the kitchen and surrounding areas. Soups, teas, and baked dinners not only keep you full but also contribute to a warmer home environment. It’s a simple routine that turns mealtime into an opportunity to cut heating costs.
6. Block Draughts and Seal Gaps
Even the best heating system struggles if warm air is constantly escaping. Small gaps under doors, around windows or through floorboards can leak more heat than you realise. The result is a home that never feels quite warm enough, no matter how long the heater runs.
Draught stoppers, weather seals or even rolled-up towels can make a big difference.. By blocking cold air from entering and warm air from leaving, you make your home instantly more comfortable. This step pairs well with curtains and zoning, giving you a multi-layered defence against heat loss.
7. Use Hot Water Bottles or Wheat Bags
Leaving an electric blanket on all night might seem like a cosy way to sleep, but it’s both costly and potentially dangerous. A safer and cheaper alternative is a hot water bottle or a wheat bag. They provide concentrated warmth exactly where you need it, without draining electricity.
Boil the kettle once, fill your hot water bottle, and you’re set up for a cosy and warm night’s sleep. Wheat bags can be heated in the microwave for a quick, reusable option. These simple solutions keep you cosy through the night without the expense of running appliances.
8. Cook Meals to Create Heat
In the summer, the oven can often heat your home when you need it the least, but in the cooler months, it becomes an ally. Cooking releases heat into your home, turning everyday meals into a source of comfort.
Roasting vegetables, baking bread, or preparing casseroles will warm the kitchen and surrounding rooms. This works best in the evenings, when outdoor temperatures drop and you would otherwise be tempted to crank up the heater.
Another benefit is the way cooking brings people together. The smell of bread baking or a roast in the oven can lift the mood of the whole household, making the space feel more inviting and warmer when it’s cold.
It’s a delicious, efficient and cosy way to double up on warmth. If you’re looking for cooking ideas, check out our article on family meals under $10.
9. Reverse Ceiling Fans in Cooler Months
Heat rises, which means a lot of the warmth you pay for shoots up to the ceiling instead of where you need it. Ceiling fans with a reverse setting solve this by pushing warm air back down into the room.
Set the blades to spin slowly clockwise. This redistributes heat evenly, making rooms feel warmer without additional energy use. Pairing this trick with zoning and curtains maximises efficiency and keeps heating bills down.
10. Follow the Sun Indoors
One of the cheapest and most natural forms of heat is sunlight. During the cooler months, harnessing it effectively can reduce your reliance on heaters.
Open curtains and blinds during sunny days to let warmth flood in. As the sun sets in the evening, close them again to trap the heat indoors. Position furniture near sunny windows to take full advantage of natural light. It’s a cost-free way that keeps your home warmer and brighter.
Take Control of Heating Costs with Red Tree Finance
Keeping your home warm and your bills under control is more than comfort. It is about your health and peace of mind. During the cooler months, staying warm is important for families with children, the elderly, or anyone working from home for long periods. Energy-saving tips can go a long way toward lowering costs, but sometimes the unexpected still happens.
If you are already facing a larger-than-expected power bill, Red Tree Finance can help. Our loans for bills give you the option to combine repayments into one manageable schedule so you can stay ahead rather than falling behind. You can apply online today or, if you prefer, talk with our customer service team about the best way forward for you.
Frequently asked questions
What is the most efficient way to heat a house in Australia?
Reverse cycle air conditioners, also known as split systems or heat pumps, are the most cost-effective option. They can generate three to four units of heat for every unit of electricity used, making them far cheaper to run than portable heaters or bar radiators. Unlike single-purpose appliances, many models can also cool your home in summer, spreading their value across the year.
When shopping for a heater, always check the energy rating. Higher-rated models may cost more upfront, but they deliver savings with every bill. For households that want reliable and efficient warmth during the cooler months, a reverse cycle system is one of the smartest investments.
What is the most common heating system in Australia?
The most common system today is the reverse-cycle air conditioner. These units are popular because they are relatively affordable to run, provide both heating and cooling, and are widely available across the country. In older homes, gas heaters and wood fires are still common, particularly in colder states like Victoria and Tasmania.
No matter what system is in place, efficiency often comes down to how it is used. Simple actions like closing doors to unused rooms, sealing draughts and adding insulation can help any heating system perform better while keeping energy bills under control.
Why do Australian houses get so cold in winter?
Australian houses are typically built for hot summers rather than cold winters. Lightweight walls, single-glazed windows and limited insulation mean that heat escapes quickly, leaving homes chilly even when the heater is on. Draughts from gaps in doors and windows also add to the problem, making it harder to stay warm.
This design choice is the main reason many households experience higher bills in the cooler months. Improving insulation, using curtains, and applying low-cost heating habits can help offset these design flaws and make homes more comfortable.
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