Calculate heating running costs

Last updated: 11 September 2024
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This page provides approximate annual energy costs and greenhouse gas emissions for a range of types and sizes of common heating systems.

These should be used as a guide only. Actual energy costs will depend on:

  • the area of your home being heated
  • how well insulated your house is
  • your thermostat settings
  • the amount of time the heating is run for each day
  • your local climate
  • your energy tariffs.

The energy costs and emissions are based on an average pre-2005 existing house in a Melbourne climate.

To estimate the annual energy for a cold climate, such as Ballarat, multiply these figures by 1.5. For a warm climate, such as Mildura, multiply these figures by 0.8.

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 December 2023.
  • The star ratings for the reverse-cycle air conditioners are based on the new (post April 2020) zoned energy rating labels.

Annual energy costs of central heating 2024 graph

graph of annual costs of common central heating options

Home heating running costs update

Figures have been updated to reflect the energy prices in mid-2024. Compared to the last update (December 2023), electricity prices have decreased slightly, while the price of natural gas, LPG and wood have increased. The 10-year emission coefficient for electricity has increased slightly, based on the emission coefficient projections published in December 2023.

Central heating – small house 100m²

Heater type Efficiency rating Annual energy cost 10-year GHG emissions (tonnes)
Multi-split reverse-cycle air conditioner 1.5 star $770 14.5
2.5 star $513 9.6
Ducted reverse-cycle air conditioner (unzoned) 1 star $1,155 21.7
2.5 star $722 13.6
Gas ducted (unzoned) 3 star $1,857 30.0
4 star $1,663 26.9
6 star $1,461 23.7
Gas hydronic (unzoned) European C rating (84%) $1,334 21.4
European A rating (92%) $1,218 19.6
Electric in-slab (unzoned) No ratings $2,134 54.2
Slow combustion wood heater (with heat shifter) 60% $1,812 4.8

Central heating – medium house 160m²

Heater type Efficiency rating Annual energy cost 10-year GHG emissions (tonnes)
Multi-split reverse-cycle air conditioner 1.5 star $1,232 23.1
2.5 star $924 17.4
Ducted reverse-cycle air conditioner (unzoned) 1 star $1,848 34.7
2-star $1,320 24.8
Gas ducted (unzoned) 3 star $2,712 48.0
4 star $2,430 43.0
6 star $2,139 37.9
Gas hydronic (unzoned) European C rating (84%) $1,942 34.3
European A rating (92%) $1,773 31.3
Electric in-slab (unzoned) No ratings $3,415 86.8
Slow combustion wood heater (with heat shifter) 60% $2,899 7.6

Central heating – large house 220m²

Heater type Efficiency rating Annual energy cost 10-year GHG emissions (tonnes)
Multi-split reverse-cycle air conditioner 1.5 star $1,694 31.8
2.5 star $1,271 23.9
Ducted reverse-cycle air conditioner (unzoned) 1 star $2,542 47.7
2 star $1,815 34.1
Gas ducted (unzoned) 3 star $3,573 66.0
4 star $3,203 59.2
6 star $2,822 52.1
Gas hydronic (unzoned) European C rating (84%) $2,555 47.2
European A rating (92%) $2,333 43.1
Electric in-slab (unzoned) No ratings $4,696 119.3
Slow combustion wood heater (with heat shifter) 60% $3,987 10.5

Room heating – small room 12m²

Heater type Efficiency rating Annual energy cost 10-year GHG emissions (tonnes)
Reverse-cycle air conditioner 2 star $98 1.8
3.5 star $69 1.3
Electric panel, convection or fan heater N/A $345 6.5
Gas heater (natural gas) 3 star $260 3.3
4.5 star $231 2.9
Gas heater (LPG) 3 star $392 3.8
4.5 star $349 3.4

Room heating – medium room 30m²

Heater type Efficiency rating Annual energy cost 10-year GHG emissions (tonnes)
Reverse-cycle air conditioner 1.5 star $287 5.4
3.0 star $191 3.6
Electric panel, convection or fan heater N/A $862 16.2
Gas heater (natural gas) 3 star $607 8.3
4.5 star $540 7.4
Gas heater (LPG) 3 star $979 9.5
4.5 star $872 8.5

Room heating – large room 60m²

Heater type Efficiency rating Annual energy cost 10-year GHG emissions (tonnes)
Reverse-cycle air conditioner 1.5 star $574 10.8
3.0 star $383 7.2
Electric panel, convection or fan heater N/A $1,723 32.4
Gas heater (natural gas) 3 star $1,109 16.6
4.5 star $987 14.7
Gas heater (LPG) 3 star $1,959 19.1
4.5 star $1,744 17.0
Slow combustion wood heater 60% $1,024 1.8

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