Calculate heating running costs

Last updated: 2 May 2023
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This page provides approximate annual running costs and greenhouse gas emissions for a range of types and sizes of heating options.

These should be used as a guide only. Actual energy costs will depend on:

  • the area being heated
  • how well insulated your house is
  • your thermostat settings
  • the amount of time the heating is run
  • your local climate
  • your energy tariffs.

The calculations are based on an average 2-star house in a Melbourne climate.

To estimate the running cost for a cold climate, such as Ballarat, multiply these figures by 1.5. For a warm climate, such as Mildura, multiply these figures by 0.8.

To estimate the running cost for a 5-star house in a Melbourne climate multiply these figures by 0.4. For a 6-Star house multiply these figures by 0.3.

The calculations for slow combustion wood heaters only include greenhouse gas emissions. Wood heaters can also produce smoke pollution.

Read EPA’s advice on reducing wood smoke pollution.

Please note:

  • Figures last updated in January 2023.
  • The star ratings for the reverse-cycle air conditioners are based on the new (post April 2020) zoned energy rating labels.

Annual energy costs of central heating 2023 graph

graph of annual costs of common central heating options

Home heating running costs update

Figures have been updated to reflect the gas price increases as of 1 Feb 2023. Prices of electricity and other fuels remain the same. We expect the electricity price to also rise in mid-2023. The 10-year emission coefficient for electricity has been updated (it has gone down a bit), based on the emission coefficient data released in 2022.

Central heating – small house 100m²

Heater type Energy star rating Annual energy cost 10-year GHG emissions (tonnes)
Multi-split reverse-cycle air conditioner 1.5 star $602 12.4
2.5 star $451 9.3
Ducted reverse-cycle air conditioner (unzoned) 1 star $902 18.6
2 star $645 13.3
Gas ducted (unzoned) 3 star $1,674 29.7
4 star $1,496 26.6
6 star $1,312 23.4
Gas hydronic (unzoned) European C rating (84%) $1,207 21.4
European A rating (92%) $1,102 19.5
Electric in-slab (unzoned) No ratings $1,631 46.6
Slow combustion wood heater (with heat shifter) 60% $1,170 4.5

Central heating – medium house 160m²

Heater type Energy star rating Annual energy cost 10-year GHG emissions (tonnes)
Multi-split reverse-cycle air conditioner 1.5 star $963 19.9
2.5 star $722 14.9
Ducted reverse-cycle air conditioner (unzoned) 1 star $1,444 29.8
2-star $1,031 21.3
Gas ducted (unzoned) 3 star $2,499 47.6
4 star $2,236 42.6
6 star $1,962 37.4
Gas hydronic (unzoned) European C rating (84%) $1,799 34.2
European A rating (92%) $1,643 31.2
Electric in-slab (unzoned) No ratings $2,609 74.6
Slow combustion wood heater (with heat shifter) 60% $1,838 7.2

Central heating – large house 220m²

Heater type Energy star rating Annual energy cost 10-year GHG emissions (tonnes)
Multi-split reverse-cycle air conditioner 1.5 star $1,324 27.3
2.5 star $993 20.5
Ducted reverse-cycle air conditioner (unzoned) 1 star $1,985 41.0
2 star $1,418 29.3
Gas ducted (unzoned) 3 star $3,303 65.4
4 star $2,955 58.6
6 star $2,596 51.5
Gas hydronic (unzoned) European C rating (84%) $2,375 47.0
European A rating (92%) $2,168 42.9
Electric in-slab (unzoned) No ratings $3,587 102.5
Slow combustion wood heater (with heat shifter) 60% $2,574 9.9

Room heating – small room 12m²

Heater type Energy star rating Annual energy cost 10-year GHG emissions (tonnes)
Reverse-cycle air conditioner 2 star $77 1.6
3.5 star $54 1.1
Electric panel, convection or fan heater N/A $269 5.6
Gas heater (natural gas) 3 star $238 3.3
4.5 star $211 2.9
Gas heater (LPG) 3 star $323 3.8
4.5 star $287 3.4

Room heating – medium room 30m²

Heater type Energy star rating Annual energy cost 10-year GHG emissions (tonnes)
Reverse-cycle air conditioner 2 star $192 4.0
3.5 star $150 3.1
Electric panel, convection or fan heater N/A $673 13.9
Gas heater (natural gas) 3 star $559 8.2
4.5 star $498 7.3
Gas heater (LPG) 3 star $807 9.5
4.5 star $719 8.5

Room heating – large room 60m²

Heater type Energy star rating Annual energy cost 10-year GHG emissions (tonnes)
Reverse-cycle air conditioner 1.5 star $449 9.3
2.5 star $337 7.0
Electric panel, convection or fan heater N/A $1,346 27.8
Gas heater (natural gas) 3 star $1,017 16.5
4.5 star $905 14.7
Gas heater (LPG) 3 star $1,614 19.0
4.5 star $1,437 16.97
Slow combustion wood heater 60% $653 1.8

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