Reverse Cycle Air Conditioning
The most energy-efficient electric heating option available. Modern inverter reverse cycle systems produce 3–5 units of heat energy for every unit of electricity consumed (3–5 COP). This makes them 3-5x more efficient than electric resistance heaters. They also provide cooling in summer — making them the best year-round system for most Australian climates.
Pro tip: Set your reverse cycle to 18-20°C rather than 22-24°C. Every degree above 20°C adds approximately 10% to your heating cost.
Ducted Gas Heating
Natural gas ducted heating distributes warm air through ceiling or floor ducts to all rooms. Fast heat-up, consistent warmth throughout the home. Running cost depends on your gas tariff — typically $0.10–0.18/kWh of heat energy vs $0.08–0.15 for a heat pump at current electricity prices. As electricity costs fall relative to gas and heat pump efficiency improves, electric heating is increasingly competitive.
Wood Heaters
A wood heater (combustion fireplace) creates a warm, atmospheric centrepiece — and in the room where the heater is located, it's effectively free heating if you have access to firewood. However: you can't heat bedrooms when sleeping (unsafe to leave unattended), air quality restrictions limit wood heater use in some LGAs during winter inversion events, and logs create storage and mess.
⚠️ Watch out: In Melbourne and many other LGAs, wood heater smoke triggers air quality alerts during winter inversion events. Wood heaters may be banned from use on declared 'burn off restriction' days — check your local council's restrictions.
Hydronic (Radiant) Heating
Hydronic heating circulates heated water through underfloor pipes or wall-mounted radiators. It heats objects and people rather than air — more comfortable and even than forced-air systems. Excellent for people with allergies (no circulating dust). High installation cost ($20,000–$50,000 for whole-home system) but low running cost with a gas or heat pump boiler.
Energy Efficiency First
Before investing in any heating system, maximise your home's thermal efficiency: ceiling insulation (most impactful), draught sealing around doors and windows, double glazing on south-facing windows, and thick curtains with pelmets (traps warm air). A well-insulated and sealed home needs 40-60% less heating than a poorly insulated equivalent.
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