Calculate heating running costs
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
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The figures in the tables above are approximate costs per year. They’re based on an average existing pre-2005 house in a Melbourne climate, heating to 20°C.
The calculations are based on an electricity tariff of 22.8c/kWh (peak) and 16.54/kWh (off peak). Natural gas tariffs are based on the standing offer of a major gas retailer using a typical "declining block" structure for a house with gas heating, water heating and cooking, which means the more gas that is used during each billing period (e.g. the larger the area being heated), the cheaper the unit cost of the gas.
Gas tariffs used for central heating are:
- 100m² to 3.15c/MJ
- 160m² to 2.93c/MJ
- 220m² to 2.812c/MJ.
Gas tariffs used for room heating are:
- 12m² to 4.03c/MJ
- 30m² to 3.79c/MJ
- 60m² to 3.44c/MJ
The electricity and gas tariffs do not include any pay on time discount or any fixed supply charges.
10-year greenhouse gas emissions are based on the estimated emission coefficients of the different fuels over the next ten years:
- 0.473kg CO2-e per kWh for electricity
- 0.05553kg CO2-e per MJ for natural gas
- 0.0642kg CO2-e per MJ for LPG
- 0.005 CO2-e per MJ for plantation-grown bulk firewood.
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 |
