Energy Tips
What Heater Will Save You the Most This Winter?
In the market for a new heater? Here’s everything you need to know to maximise your savings and efficiency.
- What Answers You’ll Get On This Page
Important Points
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As the temperature drops, it’s natural to reach for the nearest heater, but not all heating options are created equal.
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According to the Australian Government, heating and cooling could account for up to 40% of your energy bills.
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With the recent energy price hike already in place as of 1 July 2025, the type of heater you choose can make a big difference not only to your comfort, but also to your energy bill.
If you’re wondering “Which heater is cheapest to run?”, “What’s the best heater for a large room?”, or “Should I switch to a reverse-cycle air conditioner?”, this guide is for you.
Read more as we walk you through the most common types of heaters, how they perform, and which ones are best suited for different households.
Before You Buy: Questions to Ask
It’s easy to get caught up in the flashy features and aesthetics, but before you do, let’s take a step back. Your perfect heater depends on how you live, not just what’s on sale. These questions can help you determine what will actually keep you warm without burning through your wallet.
1. What size room am I heating?
Bigger rooms need more powerful heaters. Look at the Energy Rating Label for guidance on efficient heaters that can provide both heating capacity and efficiency.
2. How often will I use it?
Daily use might justify investing in an efficient reverse-cycle system. Occasional use? Stick with something portable.
3. Is my home well-insulated?
Heating is far more effective when your home holds onto warmth. If not, even the best heater will work overtime.
4. What’s my budget: now and long term?
Cheap heaters might save money upfront, but can be expensive to run. Always compare running costs, not just the purchase price.
5. Do I need to heat multiple rooms, or just one?
For whole-home warmth, ducted heating or multi-split systems make more sense. But if you only need to heat one or two spaces, you might be better off with a room-specific solution.
6. Are there safety features I need to look for?
Especially if you have kids or pets, check for timers, automatic shut-off, cool-to-touch surfaces, and tip-over protection.
6. Are there safety features I need to look for?
Especially if you have kids or pets, check for timers, automatic shut-off, cool-to-touch surfaces, and tip-over protection.
7. How noisy is it?
Some heaters, especially fan-based ones, can be noisy. If you’re using it in a bedroom or quiet workspace, noise level could be a deciding factor.
8. What state are you in?
Where you live makes a big difference. Warmer regions don’t need heavy-duty heaters, but if you’re in a colder state, you’ll likely need something more efficient. A panel heater with a timer is a good middle ground, more effective than a cheap fan heater but still affordable for most households.
What Heater Is Cheapest to Run?
When it’s freezing outside, it can be tempting to head to the nearest store and grab the cheapest heater you can find. After all, warmth is warmth, right? Not quite.
Did you know?
According to the Australian Government, some low-cost portable electric heaters, like fan heaters, radiant bar heaters, or convection models, can be some of the most expensive appliances to run¹, especially if left on for long periods. These models often lack features like timers, thermostats, or efficient heat distribution, which can play a major role in high bills.
But keep in mind that doesn’t mean you have to buy the most expensive heater on the market either. But it’s worth thinking beyond the price tag at checkout.
In most cases, reverse-cycle air conditioners come out on top for energy efficiency and cost-effectiveness, especially if you’re a solar owner or can run them during off-peak hours on a time-of-use electricity plan.
For small spaces or low use, electric panel heaters or oil column heaters can still be a good choice, provided they’re used efficiently with timers, thermostats, and a schedule.
Gas heaters may be cheaper than electric in some areas, but always factor in maintenance, safety, and installation costs.
If your home has solar panels, electric heating during the day (like with a reverse-cycle system) can be even more cost-effective, since you may be able to offset some of that usage with your own solar generation.
You might already own a heater, but is it actually energy efficient for your space, usage habits, and energy rates? Here’s how to check if your current unit is pulling its weight, or pulling down your power bill.
Step 1: Look for the Energy Rating Label (or Search the Model Online)
If your heater has a star label, like the Zoned Energy Rating Label (ZERL) for reverse-cycle air conditioners, that’s your first clue. This label shows:
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How many stars it earns in your climate (hot, average, or cold)
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How much electricity it uses per year in kilowatt-hours (kWh)
But not all heaters have these labels, especially cheaper or older models. In that case, look on the box or manual for the wattage (usually listed in watts or kilowatts). This tells you how much power is uses and how much heat it produces.
To figure out how much your heater is costing you, just multiply its daily energy use (in kWh) by your electricity rate. For example, if your heater uses 12 kWh per day and your electricity rate is 33.7 cents per kWh, here’s what it adds up to:
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Daily cost: 12 kWh × $0.337 = $4.04 per day
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Monthly cost: $4.04 × 30 days = $121.20 per month
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Yearly cost: $4.04 × 365 days = $1,474.60 per year
Running the numbers like this gives you a clearer idea of what your heating habits are actually costing.
Expert Tip
More stars = more efficient. Lower kWh/year = cheaper to run (if usage stays the same).
Step 2: Check Your Energy Bill for Clues
Look at your most recent electricity or gas bill. Ask yourself:
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Have your winter bills spiked since using this heater regularly?
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Does it show high daily usage during heater operation times?
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Are you using it mostly during peak hours, which are more expensive?
Expert Tip
A consistently high bill can be a red flag that your heater is inefficient or simply not right for your home’s needs.
Step 3: Assess How Well It Actually Heats the Room
A heater doesn’t have to run all day to be effective. Signs yours may not be efficient for your space include:
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It takes a long time to heat the room.
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You find yourself leaving it on for hours.
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It only heats one area, leaving the rest cold.
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Cold drafts or poor insulation force it to work harder.
Efficient heaters should heat your space quickly and hold that heat. If yours struggles, it might not be the right match for your home, or it could be running inefficiently due to placement, age, or model type.
Types of Heaters
Not all heaters are created equal. Some are more efficient, others cheaper upfront, and many vary depending on the room or how often they’re used. The table below outlines the key pros and cons of common heater types used in Aussie homes to help you understand what you’re purchasing before you swipe your card.
0Reverse-Cycle Air Conditioners (Heat Pumps)
Ideal for: Whole-home heating, large spaces, long-term savings
Reverse-cycle air conditioners are widely considered the most energy-efficient way to heat a home. Rather than generating heat, they transfer it, using a refrigerant process similar to a fridge or air conditioner. This makes them highly efficient, especially when compared to traditional electric or gas heaters.
In many cases, they work best in well-insulated homes or spaces with a large open-plan design. Many models come with smart features like timers and app controls.
Why it’s efficient:
According to the Australian Government, reverse-cycle air conditioners can use up to 75% less energy than standard electric heaters, particularly in milder winter climates.
What to look for:
Choose a unit with a high energy star rating and the correct kilowatt capacity for the space you’re heating. Too small, and it’ll struggle; too big, and it may cost more to run.
Good to know:
While the upfront cost can be higher (especially for ducted systems), the lower running costs often make them more economical over time, especially if you also use them for cooling in summer.
Electric Panel Heaters
Ideal for: Small rooms, occasional use, low-noise environments like bedrooms
Panel heaters are slim, silent, and easy to wall-mount or move around. They’re a common choice for bedrooms or offices where quiet operation is necessary. They heat using electric resistance, which isn’t the most efficient method, but they do provide a gentle, even warmth.
Why it’s popular:
They’re inexpensive to buy and require no installation. Many models come with thermostats, timers, and safety cut-offs. Some models include wifi/app control.
What to consider:
They’re best used in short spurts or in smaller, enclosed rooms. Leaving them on for long hours, however, can significantly increase your energy bill.
Expert Tip
Look for models with programmable timers. This can help prevent prolonged usage, which can lead to higher bills.
Oil Column Heaters
Ideal for: Bedrooms, spot heating, renters looking for portable options
Oil-filled column heaters are another common heating type. They operate silently, don’t dry out the air, and hold their heat well after being switched off. They’re great for overnight use in bedrooms, just be sure to choose one with a built-in timer or thermostat.
Efficiency:
While they feel efficient because of their steady warmth, they still use resistive electric heating, which can be costly if used for hours on end.
What to know:
They take longer to heat up compared to fan heaters or reverse-cycle systems, but are safer for continuous, low-temperature heating.
Best for:
People who want comfort while sleeping without a loud fan or the dryness that some air-based heaters cause.
Gas Heaters
Ideal for: Larger living areas, and homes with access to mains gas
Gas heaters are a popular choice for households with access to natural gas or LPG. These heaters provide strong, consistent warmth and can heat up a space quickly.
Efficiency:
Gas heaters can be more cost-effective than electric heaters, especially for larger spaces or long operating periods. However, efficiency depends on the model type; fluid gas heaters are safer and more efficient, while unflued heaters are generally cheaper but require good ventilation and come with more safety considerations (we go into more detail on cheap vs non-cheap models below).
What to know:
Always check for an Australian Gas Association (AGA) certification and ensure the heater is approved for indoor use.
Best for:
Homeowners are looking to heat larger rooms efficiently. Not always suitable for renters due to installation requirements, unless using a portable LPG heater that complies with safety standards.
Fan Heaters
Ideal for: Quick bursts of heat, small rooms, renters needing portability
Fan heaters are compact, lightweight, and heat up small spaces quickly, making them a popular and cost-effective option.
Efficiency:
Fan heaters are some of the least efficient options if run for long periods. They use resistive electric heating, which can be expensive if left on all day. Their quick heating capabilities are great short-term, but they lose heat just as quickly once turned off.
What to know:
They can be noisy and may dry out the air if used continuously. Because they generate direct heat, they’re best suited for small, enclosed spaces rather than large or open-plan spaces.
Expert Tip
If you’re thinking about buying a cheap $15 fan heater, check if there’s any other affordable options for other heater types. This could save you more on energy in the long run.
Best for:
People who need a quick heat boost in a small area, like a home office, small bedroom or even a bathroom. Ideal for short use, not all-day comfort.
Author
Benjamin TomBenjamin is a utility specialist passionate about creating informative content about the energy, internet, and solar markets. With extensive experience in the telecommunications industry, Benjamin drives our unique blog posts, articles, and reviews. He is focused on breaking down the technical jargon so our readers can better understand the telco market and industry. Whether he is comparing the latest internet deals or creating unique guides, Benjamin takes great pride in creating helpful, easy-to-read content.
Sources:
¹Heating and Cooling, Australian Government, https://www.energy.gov.au/households/heating-and-cooling
