Winter has well and truly set in across the eastern side of Australia and 2025’s edition is not messing around. New South Wales experienced its coldest June by minimum temperature since 2006, while Queensland and even the Northern Territory hit their lowest minimum temperature since 2012.
If you’re living in a part of the country where you’re feeling bitterly cold this winter, it’s important to strike the right balance between warmth and not paying through the nose for energy. To make matters worse, energy bills have increased yet again from the start of July, so if you aren’t keeping an eye on your heating, you could be in for some big bill shock. Fortunately, there are simple ways to reduce the cost of your winter heating bill while still maximising comfort.
How can I stay warm in winter without breaking the bank?
There’s something of an art to heating your home in a way that keeps a lid on electricity and gas bills. From reducing the temperature on the thermostat to utilising natural resources like the sun, being selective about which parts of your home to heat and knowing how to effectively trap warmth, there are plenty of options when it comes to economical heating. We’ll unpack these methods and more to help you determine the best ways to help you save.
Firstly, where is all my warmth going?
According to the Residential Efficiency Scorecard, Australia’s national energy rating program for existing homes, heat loss in your home can be split into four key areas. Here’s a breakdown of each one and how much heat escapes this way:
Insulation
- Ceilings: between 25% and 35% of heat loss
- Walls: between 15% and 25% of heat loss
- Floors: between 10% and 20% of heat loss
Windows
In winter, between 10% and 20% of heat escapes through windows. Even double-glazed windows without any gaps are still prone to heat loss.
Gaps and cracks
Anywhere between 5% and 25% of heat loss in your home can be put down to gaps and cracks. Breaches can come from any of the following areas:
- Ceiling vents
- Chimneys
- Door seals
- Downlights
- Exhaust fans
- Floorboard and skirting board gaps
- Wall vents
- Window seals
Thermal mass
This refers to the materials your home was made from, which impact the effectiveness of heat retention. Brick, concrete and tile are examples of materials that are slow to change temperature, therefore leading to better heat absorption from your heater or sunlight.
How to be dialled in with your heater and make your home more energy efficient
Here are some simple energy-saving tips for heating your home effectively and economically:
- Turn down the A/C: set your thermostat to a comfortable temperature range of 18°C to 21°C. Each degree you decrease can save up to 10% on heating costs.
- Utilise daylight solar energy: make use of sunlight while it’s there by keeping curtains and blinds open to let natural warmth in. Close them at night to retain the heat.
- Invest in curtain pelmets: use thick curtains with curtain pelmets to reduce heat loss, preventing warm air from escaping and reducing the need for excessive heating.
- Zone heating: divide your home into zones by closing doors to unused rooms. Only heat the areas you're actively using, reducing energy wastage.
- Explore insulation improvements or double-glazing: if your windows are thin and your ceiling and roof are light on insulation, addressing these two issues could limit heat loss further.
- Fit doors and windows with draught seals: plugging gaps in doors and windows is a simple fix that can pay dividends when it comes to heat retention in your home.
- Cut back on dryer usage: if you’re a prolific dryer user, opting to air-dry your clothes for some of your loads during winter can save on electricity bills in winter.
- Keep an eye on hot showers: short, sharp and shiny showers in winter can help you cut back on your energy usage significantly. Even changing your showerhead can make a difference.
- Maintain your heating system: regularly service and maintain your heating system to ensure it runs efficiently and reduces energy waste.
Choosing the right heating appliance
Consider these factors when deciding on the best heating option for your home:
- Room size and heating capacity: think about the size of the room you want to heat. For one or two people in a small room, an electric rug, column heater or blanket might do the trick. A small reverse cycle air conditioner can effectively heat a small to medium sized room. For larger areas, zoned heating systems or whole-house solutions may be necessary.
- Energy efficiency: look for heating appliances with high energy star ratings. Energy-efficient heaters can significantly reduce your consumption and lower bills.
- Running costs: compare the purchase, installation and running costs of different heating options. Factor in the appliance's lifespan and warranty to make an informed decision.
- Convenience features: consider additional features like timers, remote controls, child locks and adjustable settings for optimal comfort and convenience.
- Safety: this is crucial, especially if you have children or pets. Look for heaters with safety features like tip-over protection and cool-touch exteriors.
- Zoning and zoned ducted systems: zoning allows you to heat specific areas of your home, reducing energy waste. Zoned ducted systems offer efficient whole-house heating, allowing temperature control in different areas at different times of day.
- Electric vs. gas: weigh up the pros and cons of electric and gas heaters. Electric heaters are generally more affordable upfront, while gas heaters may have lower running costs, depending on gas prices and consumption.
Ultimately, the right heating appliance will depend on your specific needs, budget, and your home setup. Take time to research different options, read customer reviews, and consider professional advice to make an informed choice.
What is the cheapest type of heater to run in winter?
The cheapest type of heater to run in winter can vary based on factors such as energy efficiency, room size and local energy prices. However, according to Finder’s data, reverse cycle air conditioning is comfortably the cheapest to run in winter at just $155 across three months. Ceramic heaters ($242), fan heaters ($253) and oil-filled column heaters ($253) were the next best, while gas heaters ($301) and convection heaters ($270) were the most expensive.
If you’re looking for ways to cut back on the cost of electricity and gas in your home and haven’t reviewed your current plan in the last 12 months, you’re probably leaving money on the table already. It’s worth taking the time to compare the options available to you and see whether there are savings waiting to be had, which you can do through Savvy today.
Government energy rebates and programs: 2025
It’s also essential to be mindful of any potential rebates or schemes that could help you save on your energy bills. energy.gov.au has a list of all rebates, concessions and schemes currently available in each state and territory of Australia, so it’s worth taking a look to see if you qualify for any.
