12 May 2026
With cooler months approaching and cost-of-living pressures rising, keeping your home warm without breaking the bank can be challenging. Luckily, CHOICE experts have crunched the numbers on different types of heating to help you save money on your energy bills.
“97% of Australians say their household bills and expenses have increased over the last 12 months – the highest number recorded in more than 10 years of our Consumer Pulse survey. So it’s more important than ever to do what you can do to reduce your energy bill,” says CHOICE household expert, Chris Barnes.
CHOICE’s top tips to reduce your energy bills:
1. Use a reverse-cycle air conditioner for heating
“In the long run, air conditioners are the cheapest way to heat your home, as opposed to using something like a portable electric heater. Our estimates show that running a reverse-cycle air conditioner for the entire year can cost less than running an electric heater for just three months over winter,” says Barnes.
“However, if you don’t already have one installed, the upfront cost of buying a reverse-cycle air conditioner is anywhere from $600 to $5,550 – plus a few hundred dollars for the installation.”
2. Ensure your home is properly insulated
“Having a well-insulated home makes a big difference to keep the heat in and the cold out. You can lose up to 35% of your home’s warmth without insulation, which can drive up energy bills,” says Barnes.
“However, if you can’t afford insulation or are renting, there are still plenty of cost-effective ways to keep your home warm. Sealing draughts, closing your curtains or blinds, and using rugs can all help retain heat, all of which will help reduce your heating bills.”
3. Be smart with your heating options
“On cold days, avoid turning your air conditioner up higher than necessary, as this will increase your energy bill. We recommended setting the temperature around 18-20°C. Every extra degree increases your heating energy use by up to 10%,” says Barnes.
“While your heating is on, it’s also important to close doors to rooms you aren’t using. Only heating the rooms you’re in will reduce energy use and therefore lower your bill.”
4. Heat the person, not the home
“Another cheaper way to stay warm is by using personal heating products such as heated throws or electric blankets. Rather than using an electric heater, which takes longer to warm up and is only ideal for shorter usage times, try an electric blanket or throw,” says Barnes.
“Our research shows you shouldn’t expect to pay more than $48 per season to run a single bed electric blanket, including pre-heating and leaving it on overnight, every night for three months. Heated throws are even cheaper, with running costs ranging from $12 to $18 over a few months.”
As with any powered product, ensure you follow the safety instructions and never leave them unattended.
Editor’s notes:
CHOICE Consumer Pulse March 2026 is based on an online survey designed and analysed by CHOICE. 1,096 Australian households responded to the survey with quotas applied to ensure coverage across all age groups, genders and locations in each state and territory across metropolitan and regional areas. The data was weighted to ensure it is representative of the Australian population based on the 2021 ABS Census data. Fieldwork was conducted in March, 2026.
