How much does it cost to run aircon versus portable electric heater in winter? Here's how to save the most (2024)

We're officially in winter now, so that means cranking up the heaters and bracing for an eye-watering power bill.

As households deal with cost-of-living woes and high electricity prices, we spoke to experts about how you can keep your bill down during winter — while staying warm.

Here's what they suggested.

Shop around for a better deal

Don't assume your current energy provider is offering you the best deal available.

Give them a call to find out the best deal they'll offer to keep you as a customer, and then ring up some competitors to compare the prices.

In 2023, the Australian Competition and Consumer Commission (ACCC) found as many as a quarter of customers were paying more on power bills than they needed to because they had not actively:

• Pursued the lowest-cost plans with their provider
• Switched providers to take advantage of new customer deals

The ACCC found in some cases those households could save up to $400 a year just by switching plans.

And if your current provider won't cut you a better deal, chances are somebody else will.

This government website can help you find which provider has the best rate.

If you live in Victoria, visit Victorian Energy Compare.

Heat the person first

It may seem like a simple concept, to heat the person, not the room first, but it can save you some money.

"We often want to crank the heat up so we can walk around the house in a T-shirt and shorts in winter, but that's not cost-effective," CHOICE home heating expert Chris Barnes tells the ABC.

According to the Australian Department of Energy, each additional degree of heating can add between 5-10 per cent to your energy use.

So before switching on the heat, try layering up first — think dressing gown, socks, slippers, or a beanie.

You could even consider an old fashioned item like a heated water bottle to keep you warm.

Cosy up with an electric blanket

Or what about something a bit more modern like an electric blanket or heated throw?

"Heated throws are energy efficient and don't actually use up a lot of electricity compared to a portable heater or aircon," Mr Barnes says.

Energy Australia says:

"On average, electric blankets cost about four cents an hour, compared to some space heaters which can cost around 15 cents an hour."

Calculations from CHOICE suggest you shouldn't expect to pay more than $46 per season to run a single bed electric blanket. This includes pre-heating it every night for three months.

Let the sunshine in

Simple, effective, and doesn't cost a cent.

On sunny days, take advantage of the winter rays by opening your curtains and letting the sunshine warm your spaces.

As the sun starts to dip, shut your curtains — this can help reduce the amount of air exchange between a cold window and the rest of the room.

Essentially, you want to trap the cold air behind the curtain.

Reverse cycle aircon vs portable electric heater

Not all heaters are equal.

Because when it comes to choosing a heating appliance, the option that is cheapest in the short-term and long-term are two very different things.

"Portable heaters are usually cheaper to buy up-front, but they are not cost effective to run in the long term," Mr Barnes says.

"And that's where the reverse cycle aircon comes into the picture. They're more expensive to install up-front, but in the long term they are far more energy efficient.

"They can deliver a lot more heating for the electricity they use."

Because every home is different, heating requirements will vary depending on a home's thermal efficiency, room size, and many other factors.

To give you an idea of the price difference between three heating options for a small room, CHOICE crunched some numbers.

Before we dive in, the calculations were based on 500 hours of use (6 hours a day for 3 months), with peak pricing at 40c/kWh for electric appliances and 4c/MJh for gas.

These are only test parameters — they may not be relevant to all households.

As you can see, the electric heater will cost less than the reverse-cycle aircon for the first four years.

But after that, the aircon becomes the cheaper option.

Over four years the:

• Electric heater costs: $1,789
• Reverse cycle aircon costs: $1,795

And if you're curious about how much the gas heater would cost over a four-year period, you're looking at $2,769.

What should I set my heating temperature to?

If you do decide to use your aircon in reverse cycle mode, Climate Council head of policy and advocacy Jennifer Rayner says there is a sweet spot for a cost-effective temperature setting.

"You should set the heating slightly lower to 19 or 20 degrees instead of the typical 23 or 24 and then rug up in the house," Dr Rayner tells the ABC.

"A small thing like this can make a big difference to your power bill."

Flip the switch on your ceiling fan

Use your ceiling fan on reverse.

Most modern ceiling fans have a reverse switch that makes the blades turn clockwise. Since hot air rises, this will push the warm air back down towards the floor.

Mr Barnes says testing shows a heater uses less power when the ceiling fan is going at the same time.

"The heater doesn't have to work as hard as the fan is helping to circulate warm air throughout the room."

Keep the heat in

Draught-proofing your home can save you up to 25 per cent on your heating bills, the Australian Department of Energy says.

And Dr Rayner says this is the cheapest option to implement.

"This can be really simple like using door snakes, putting some rugs down, and making sure windows and doorways are properly sealed to stop air leaks from coming through."

One way to find drafts in your home is to light an incense stick or candle and look for the flutter that indicates there is air movement.

You could also consider window coverings.

As much as 40 per cent of a home's heating energy can be lost through the windows.

"Investing in quality curtains and blinds can make a difference to your home's warmth," Mr Barnes says.

"Look for fabrics meant for thermal efficiency such as honeycomb blinds."

Thermal film or double-glazing are also effective options, Dr Rayner says.

"Temporary film on windows can stop the heat from leaving, and a step above that is glazing, which is a more permanent, expensive solution."

Most of these tricks are something even renters can do too at a low cost.

Window sealing kits are available from your local hardware store.

Does it cost more to keep turning the heater on and off?

The more you can avoid stop/start situations, the better.

If you heat your house for a while, then turn your heater off — only to switch it back on when it gets cold again — your aircon is going to have to work hard to get back to the temperature you set.

"When you start a motor, that initial moment is where it uses a lot more power to get itself going," Mr Barnes says.

Whereas if it's on the same temperature (as suggested above), it's going to run more efficiently because you're preventing the start-up energy cost that comes with turning it on and off.

If you're thinking about leaving the heating on for prolonged periods of time, Mr Barnes says you shouldn't do this if your home isn't thermally efficient.

"You'd end up losing all the heat, and therefore wasting energy and spending more on your power bill."

Why do we see an increase in power bills during winter?

Mr Barnes says we tend to see a spike in energy usage in winter and summer because most homes aren't thermally efficient.

"They've been likened to glorified tents by some experts," he says.

"What that alludes to is a lack of insulation and a lack of being airtight.

"That means for example, when you're heating your home, a lot of that heat is being lost through cracks, uninsulated ceiling, and glass through the windows."

Dr Rayner echoed the same sentiment.

"Up to eight million homes were built before any minimum energy standards existed, and a vast majority of those homes still have poor energy ratings," she says.

"And they're generally not designed in ways that maximise comfort, safety and efficiency."

Are there any energy rebates available?

Yes.

This year's federal budget included a $300 energy bill rebate for every household. It'll automatically be taken off your power bill.

Some states are also offering their own separate rebates on top of the federal government.

In Queensland, every household will receive a $1,000 credit on their power bills in July.

Eligible seniors, pensioners and concession card holders will receive a further $372.

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