Gas Vs Electric Heating: Which One Works Best For Aussies In Winter?

As the mercury drops and the chill sets into Australian homes, the annual debate fires up again — gas or electric heating, which one truly wins the efficiency war during winter?

In a country where temperatures can dip into single digits across southern states like Victoria, Tasmania, and parts of New South Wales, heating isn't a luxury — it's a necessity. But as energy costs rise and climate awareness grows, homeowners are increasingly searching for the most energy-efficient, cost-effective, and sustainable heating solution for the long haul.

Whether you're building new, renovating, or simply trying to optimise your home for winter, making the right decision on heating is crucial — not just for your comfort, but also for your wallet and the environment. With growing pressure to meet 6 star energy rating standards in new homes, it's more important than ever to understand how heating systems stack up.

Let's explore the pros and cons of both systems, from upfront costs to long-term savings, carbon footprints to running costs, so you can make an informed decision tailored to your lifestyle and location.

• The True Cost of Staying Warm

When you're weighing up gas and electric heating, your first consideration might be the price tag — both upfront and over time.

Gas heating systems, particularly ducted ones, tend to have higher installation costs, especially if ductwork needs to be installed or retrofitted. A ducted gas system for a 3-bedroom home can range between $3,000 and $7,000. Wall-mounted gas heaters are more affordable, starting at around $1,000 installed.

Electric systems, like split-system air conditioners, are generally cheaper to install. A good quality reverse-cycle unit might set you back between $1,500 and $3,500, depending on your home's size.

But it's the running costs that really start to separate the two.

Gas prices have been rising steadily over the past decade in Australia, with fluctuations depending on location and supplier. Electricity, on the other hand, can be offset if you're using solar power or are signed up for off-peak tariffs.

According to Sustainability Victoria, a reverse-cycle air conditioner is often the cheapest form of heating per unit of energy delivered, especially when compared to standard electric resistance heaters or older gas units.

• Energy Efficiency and Environmental Impact

It's easy to get lost in dollars and cents, but there's another layer to the debate: energy efficiency and emissions.

Electric reverse-cycle systems can be incredibly efficient, with Coefficient of Performance (COP) ratings of 3 to 5. This means that for every unit of electricity consumed, the system can deliver three to five units of heat.

Gas heating, in contrast, has an efficiency ceiling of around 90% (or a COP of 0.9). So, while high-efficiency gas units exist, they simply can't match the energy multiplication effect of modern electric systems.

Australia's National Construction Code (NCC) has been pushing for more sustainable housing through initiatives like the energy rating assessment, which evaluates the thermal performance of your home. Homes with better insulation, airtightness, and efficient heating and cooling systems score higher, contributing to lower emissions and running costs over time.

For homeowners aiming for long-term sustainability, electric heating — especially when paired with rooftop solar — offers a significantly lower carbon footprint.

• Renewable Energy and the Electric Advantage

Another reason electric system is gaining popularity is the rise of home solar.

Australia has one of the highest rooftop solar uptakes in the world. By using the energy, you generate during the day to run your heating, you're drastically reducing your carbon footprint and potentially zeroing out your heating bill — a feat gas systems can't achieve.

Moreover, as the electricity grid continues to decarbonise, electric heating will only become greener. That's a future-proofing advantage that gas simply can't offer, especially given discussions about phasing out natural gas in new homes in several Australian states.

• Comfort and Control

Beyond numbers and efficiency, comfort matters. And both systems offer unique advantages.

Gas heaters produce a dry, powerful heat that warms a space quickly. For those who want instant warmth — especially in older homes with less insulation — gas is a reliable performer.

Electric systems, particularly reverse-cycle units, offer more nuanced climate control. Most come with programmable thermostats, timers, and zoning capabilities. This means you can heat only the rooms you're using, or schedule warmth for your early-morning routine without leaving the system on all night.

This level of control helps reduce energy waste — a key factor if you're striving for a higher home energy rating and improved household efficiency.

• Maintenance and Durability

Gas systems, particularly older models, require annual servicing to ensure they're operating safely and efficiently. Poorly maintained units can become dangerous, leaking carbon monoxide or operating at reduced performance.

Electric systems tend to require less frequent maintenance — usually a simple clean and filter check every few months. Modern split systems can last between 10 and 15 years with minimal upkeep, making them a solid long-term investment.

Additionally, many electric systems come with app connectivity or smart home compatibility, making it easier than ever to monitor and manage your home's temperature remotely.

• Long-Term Financial and Environmental Savings

While gas might still be marginally cheaper to run in some areas today, the future points clearly towards electric.

Reverse-cycle air conditioners often come with higher efficiency ratings and lower running costs when calculated over 10–15 years. Combine that with government rebates for energy-efficient upgrades, solar incentives, and smart thermostat systems, and the savings stack up fast.

Switching to electricity also helps homeowners align with Australia's energy goals, including reduced emissions targets and more sustainable construction practices.

Final Thought

The decision between gas and electric heating in Australia ultimately depends on your location, home design, lifestyle, and long-term goals. However, the tide is clearly turning in favour of electric systems.

Thanks to advances in technology, solar integration, lower maintenance needs, and improved comfort control, electric heating — particularly reverse-cycle — offers the best balance of efficiency, cost-effectiveness, and sustainability for most Australian homes.

If your home is well-insulated, has solar panels, or you're aiming for at least 6 star energy rating report, an efficient electric heating system is not just smart — it's the future.