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 1.3. For a warm climate, such as Mildura, multiply these figures by 0.7.
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 March 2020.
- The star ratings for the reverse-cycle air conditioners are based on the energy rating scheme for air conditioners registered prior to April 2020.
Central heating
Small house 100m²
| Heater type | Energy star rating | Annual energy cost | Annual emissions (kg/year) |
|---|---|---|---|
| Gas ducted | 3 star | $835 | 2810 |
| 4 star | $735 | 2470 | |
| 6 star | $635 | 2135 | |
| Gas hydronic | European C rating (84%) | $675 | 2250 |
| European A rating (92%) | $620 | 2055 | |
| Ducted reverse-cycle air conditioner | 2 star | $840 | 3415 |
| 4 star | $585 | 2380 | |
| Multi-split reverse-cycle air conditioner | 2 star | $730 | 2965 |
| 3.5 star | $580 | 2355 | |
| Electric in-slab | No ratings | $1955 | 11,185 |
| Slow combustion wood heater | Standard | $760 | 200 |
Medium house 160m²
| Heater type | Energy star rating | Annual energy cost | Annual emissions (kg/year) |
|---|---|---|---|
| Gas ducted | 3 star | $1250 | 4500 |
| 4 star | $1095 | 3955 | |
| 6 star | $950 | 3415 | |
| Gas hydronic | European C rating (84%) | $1005 | 3595 |
| European A rating (92%) | $920 | 3285 | |
| Ducted reverse-cycle air conditioner | 2 star | $1295 | 5270 |
| 4 star | $990 | 4030 | |
| Multi-split reverse-cycle air conditioner | 2 star | $1140 | 4640 |
| 3.5 star | $915 | 3720 | |
| Electric in-slab | No ratings | $3120 | 17,865 |
| Slow combustion wood heater | Standard | $1215 | 320 |
Large house 220m²
| Heater type | Energy star rating | Annual energy cost | Annual emissions (kg/year) |
|---|---|---|---|
| Gas ducted | 3 star | $1645 | 6185 |
| 4 star | $1445 | 5435 | |
| 6 star | $1250 | 4695 | |
| Gas hydronic | European C rating (84%) | $1325 | 4945 |
| European A rating (92%) | $1210 | 4515 | |
| Ducted reverse-cycle air conditioner | 2 star | $1750 | 7120 |
| 4 star | $1360 | 5535 | |
| Multi-split reverse-cycle air conditioner | 2 star | $1555 | 6315 |
| 3.5 star | $1250 | 5080 | |
| Electric in-slab | No ratings | $4280 | 24,515 |
| Slow combustion wood heater | Standard | $1670 | 440 |
Room heating
Small room 12m²
| Heater type | Energy star rating | Annual energy cost | Annual emissions (kg/year) |
|---|---|---|---|
| Gas room heater | 3 star (natural gas) | $125 | 345 |
| 5 star (natural gas) | $105 | 290 | |
| 3 star (LPG) | $265 | 395 | |
| 5 star (LPG) | $225 | 335 | |
| Room reverse-cycle air conditioner | 2 star | $120 | 485 |
| 5 star | $70 | 285 | |
| Electric portable heater | No ratings | $330 | 1340 |
| Electric fixed heater | No ratings | $330 | 1340 |
Medium room 30m²
| Heater type | Energy star rating | Annual energy cost | Annual emissions (kg/year) |
|---|---|---|---|
| Gas room heater | 3 star (natural gas) | $295 | 845 |
| 5 star (natural gas) | $250 | 720 | |
| 3 star (LPG) | $655 | 970 | |
| 5 star (LPG) | $560 | 830 | |
| Room reverse-cycle air conditioner | 2 star | $270 | 1080 |
| 5 star | $170 | 695 | |
| Electric portable heater | No ratings | $810 | 3285 |
| Electric fixed heater | No ratings | $810 | 3285 |
Large room 60m²
| Heater type | Energy star rating | Annual energy cost | Annual emissions (kg/year) |
|---|---|---|---|
| Gas room heater | 3 star (natural gas) | $530 | 1,680 |
| 5 star (natural gas) | $455 | 1,440 | |
| 3 star (LPG) | $1,305 | 1,935 | |
| 5 star (LPG) | $1,115 | 1,655 | |
| Room reverse-cycle air conditioner | 2 star | $555 | 2,245 |
| 5 star | $380 | 1,535 | |
| Electric portable heater | No ratings | $1,605 | 6,525 |
| Electric fixed heater | No ratings | $1,605 | 6,525 |
| Slow combustion wood heater | Standard | $545 | 145 |
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The figures in the tables above are approximate costs per year. They’re based on an average existing pre-2005 2-star house in a Melbourne climate, heating to 20°C all day on:
- 9:00 am to 10:00 pm on the weekend
- 6:00 am to 9:00 am on weekdays
- 5:00 pm to 11:00 pm on weekdays.
The calculations are based on an electricity tariff of 27.51c/kWh (peak) and 19.55c/kWh (off peak). Gas tariffs are based on a declining block structure, which means the unit cost of gas decreases as gas use (or area being heated) increases.
Gas tariffs used for central heating are:
- 100m² to 1.68c/MJ
- 160m² to 1.56c/MJ
- 220m² to 1.49c/MJ.
Gas tariffs used for room heating are:
- 12m² to 2.05c/MJ
- 30m² to 1.94c/MJ
- 60m² to 1.77c/MJ
- LPG to 4.46c/MJ.
The electricity and gas tariffs do not include any pay on time discount or any fixed supply charges.
Greenhouse gas emissions are based on:
- 1.12kg CO2-e per kWh for electricity
- 0.05543kg CO2-e per MJ for natural gas
- 0.0642kg CO2-e per MJ for LPG
- 0.0013 CO2-e per MJ for plantation-grown bulk firewood.
