Choose the right heating system for your home

Last updated: 22 May 2025
Share

Choosing a heating system is an important decision to make, as it locks in your heating costs, the largest component of your annual energy bill, for well over a decade.

Heating systems are usually fuelled by electricity or gas, although sometimes wood is used. Several different heating types are available for each fuel, and the efficiency of the heaters can also vary across the range of models available. The type of heater, the fuel used, and the efficiency of the heater all have a significant impact on your heating costs. The size (or floor area) of the space you want to heat and how you use your home are also important considerations. If you are replacing an existing heating system, you should consider if replacing it on a like-for-like basis is the best option. Electric reverse-cycle air conditioners (also called heat pumps) are more efficient and cheaper to run than gas ducted and gas room heaters and financial incentives are available to assist with making the change.

For most Victorians, electric reverse-cycle split systems are the most energy efficient, lowest cost heating option available and one that generates low greenhouse emissions over the life of the heater. If your house has a rooftop solar PV system, the benefits of heating with electric reverse-cycle systems can be even greater as they make more use of the output of the PV system.

Find a system that's right for you

Fuel available to you

Heating systems can generate heat with:

  • electricity
  • wood
  • gas (natural or LPG).

Choosing one depends on what fuels are available to you.

How much space you need to heat

There are 2 main types of heating systems:

  • central heating
  • room (or space) heating.

If you need to heat your whole house, central heating is an potion to consider. Ideally with a zoning capability, that allows you to heat only certain areas of your home.

If you only want to heat a certain room or open plan area of your home, a room heater would be best.

Multi-split reverse-cycle air conditioners are a heating system that sit between central and room heating. They have one outdoor unit connected to multiple indoor units located in different rooms, so can heat and cool a large area of the house at once, or just individual rooms or areas.

Generally, it’s cheaper to use a room heater than a central heater. But it really depends on how big a space you’re heating. The larger the area, the larger the system you’ll need. An incorrectly sized system won’t heat your home efficiently and could cost you more money to run.

If you can, get a supplier to visit and assess your home's heating needs before providing a quote. If that’s not possible, provide them with a floor plan of your house, showing dimensions of the areas you want to heat. Also provide them with information about the insulation you use in your home, and the size and orientation of large windows.

Common central heating options

Common room heating options