Heating options ranked by running cost
| Heating | Cost an hour | Works best for |
|---|---|---|
| Heated throw or rug | 4-6c | One or two people sitting still |
| Electric blanket | 5-6c | Warming a bed |
| Small reverse cycle air conditioner | 10-14c | A small room of about 12 m² |
| Reverse cycle air conditioner | 36-48c | A large room of about 36 m² |
| Radiant heater | 38-52c | One or two people nearby |
| Electric panel heater | 46-62c | A small room of about 12 m² |
| Gas heater | 48-91c | A large room of about 36 m² |
| Small combustion fire | 60-82c | A large room of about 36 m² |
| Electric portable heater | 92c-$1.25 | A small room of about 12 m² |
| Zoned ducted reverse cycle | $1.44-$1.95 | A whole 200 m² home |
| Zoned ducted gas heating | $2.78-$3.05 | A whole 200 m² home |
Why reverse cycle wins
A plug-in heater, whether fan, oil column, panel or radiant, turns one unit of electricity into one unit of heat. energy.gov.au describes these heaters as 100% efficient, which sounds good until you compare it with a reverse cycle air conditioner. That moves heat from outside into the room and is 300% to 600% efficient, so the same electricity delivers three to six times the warmth.
Reverse cycle air conditioner
- Lowest cost per unit of heat
- Heats and cools
- Timers and zoning
- Upfront cost and installation
- Less effective in very cold weather on older units
Best for: Living areas used every evening.
Portable electric heater
- Cheap to buy
- No installation
- Highest running cost per hour of warmth
- Fire risk if misused
Best for: Short bursts in a small room.
Electric blanket or heated throw
- Cents an hour
- Heats you, not the air
- Only warms the person using it
Best for: Bedtime and sitting still.
Making any heating cheaper
Heat only the rooms you use
Close doors and use zones on a ducted system.
Set 18°C to 21°C
Every degree lower can cut running costs by up to 10%, according to the SA Government.
Keep the heat in
Effective insulation can cut heat lost through ceilings and walls by up to 60%, and up to 20% of heating can be lost through windows. Thick curtains with pelmets help.
Stop draughts
Draught stoppers under doors and seals around windows are cheap and quick.
Let the sun in
Open north-facing curtains on sunny winter days and close them at dusk.
Price your own heater
Use our heater and air conditioner calculators with your own wattage, hours and rate. Our winter bills guide shows how much more homes use in winter.
Questions about cheap home heating
A reverse cycle air conditioner. The SA Government estimates a small unit costs 10c to 14c an hour to heat a 12 m² room on a flat rate, against 92c to $1.25 for a portable electric heater.
For heating one person, a heated throw or electric blanket at around 4c to 6c an hour. For heating a room, a reverse cycle air conditioner.
Compared with plug-in electric heaters, often yes. Compared with reverse cycle air conditioning, usually no. The SA Government's figures put a gas heater at 48c to 91c an hour for a large room, against 36c to 48c for reverse cycle.
They cost the same per hour as any electric heater at the same wattage. They hold heat and cycle off on a thermostat, but they are still far more expensive than reverse cycle heating.
Sources
Every rate on this page comes from the regulator or the regulated retailer. Last checked October 2026. Prices include GST unless we say otherwise.