How to Reduce Your Heating Bills This Winter
Chloe Jones
Published on 26th May 2025

Key Takeaways

  • Seal drafts, insulate well, and use thick curtains to retain heat.

  • Optimise heating zones, use smart timers, and maintain heating systems regularly.

  • Explore energy-efficient upgrades, solar panels, and better energy plans for long-term savings.


Winter in Australia can be a chilly time—especially in the southern states like Victoria, Tasmania and parts of New South Wales and South Australia. That crisp morning air and the cosy nights are lovely, but the rising heating bills can quickly become a headache. 

With a bit of planning and some practical tips, you can stay warm and comfortable without breaking the bank.

1. Understand Your Heating System

In Australia, you'll most likely have electric heaters, reverse cycle air conditioners, gas heating or wood heaters. Each has its pros and cons.

  • Electric heaters are cheap to buy but expensive to run. 

  • Reverse cycle air conditioners (or heat pumps) are popular because they're energy-efficient and can both heat and cool. 

  • Gas heaters are common in many homes and can be cheaper than electric, depending on your gas supply. 

  • Wood heaters give that classic cosy feel—but they require a good supply of dry wood and regular cleaning.

2. Seal Up Drafts and Insulate

One of the simplest ways to reduce heating bills is to stop the warm air from escaping. 

  • Drafts around windows, doors and floorboards mean your heater has to work overtime.

  •  Check windows and doors for gaps and seal them with weather stripping or draught stoppers. 

  • Use thick curtains or blinds at night to keep the heat in. 

Iif your home lacks insulation, adding it to your roof or walls is worth considering. That might be an upfront investment, but it pays off quickly in savings and comfort. 

Rugs or carpets can also help keep your feet warm and reduce heat loss through the floorboards or tiles.

3. Use Heating Zones and Timers

Heating the entire house when you only need one or two rooms is a waste of energy and money. Focus on heating the rooms you use most—like the lounge or bedroom. 

“By optimising your heating and cooling schedule, smart thermostats can reduce energy waste, leading to lower monthly electricity bills,” says Metropolitan Heating and Cooling.

4. Maintain Your Heating System

 A poorly maintained heater will run less efficiently, costing you more. Clean or replace filters regularly if you have a reverse cycle air conditioner or gas heater. 

Service your gas heater or wood heater annually to ensure it's working safely and efficiently. Electric heaters should be free of dust and placed away from curtains or furniture to allow good airflow.

5. Wear Warmer Clothes and Use Extra Bedding

Sometimes, the easiest way to cut down heating costs is to make some lifestyle changes. 

  • Layer up with warm clothes like jumpers, thermal underwear and slippers. 

  • Use extra blankets or a doona on your bed. 

  • Snuggle up with a hot water bottle or heat pack instead of cranking the heater all night.

These small changes mean you can set your thermostat a few degrees lower without feeling cold.

6. Make the Most of the Sun

Australian winters can be sunny even when the air is cold. Use that natural heat to your advantage. Open curtains and blinds on sunny days to let the warmth in. Close them as soon as the sun sets to trap that heat inside.

 If you have a sunroom or enclosed porch, use it as a warm area during the day.

7. Consider Energy-Efficient Upgrades

If you're looking for longer-term savings, consider investing in energy-efficient options. Upgrading to a modern reverse cycle air conditioner or energy-efficient gas heater can reduce your bills. 

Installing solar panels can help reduce your electricity costs, particularly if you rely on electric heating. Each kilowatt-hour (kWh) of solar energy your home uses directly means one less kWh you need to purchase from the grid. 

Don’t forget to check for government rebates or incentives in your state that can help with the upfront cost of home energy upgrades.

8. Be Smart With Your Heater Placement

Where you place your heater can impact how well it heats the room. 

  • Avoid placing heaters behind furniture or curtains. 

  • Position heaters near where people sit or sleep. 

  • If using a wood heater or gas heater, ensure your room has good airflow to distribute warmth evenly.

9. Reduce Hot Water Usage

Finally, reducing hot water usage can also help cut down your energy bill. Hot water heating can be a significant part of your energy bill, especially if you use electric hot water systems.

One of the best ways to reduce your energy bills this winter is to get a handle on your hot water use. That means taking shorter showers, washing clothes in cold or warm water rather than hot. Installing a water-efficient showerhead or a timer on your hot water system can make a big difference too.

10. Check Your Energy Plan

Using less hot water means you'll be using less energy to heat it. That frees up more of your budget for heating your living spaces. But here's the thing: sometimes the problem isn't just how much energy you use, but how much you pay for it.

That's where your energy plan comes in. And yes, that means shopping around for a better deal. Many providers offer discounts or off-peak rates. Time-of-use plans can be a good option too - you pay less for electricity used during certain hours. 

If you use gas, check if your supplier can offer you a better rate.

Simple, practical steps to keep your home cosy and your heating costs down this winter.

A better energy plan can save you a surprising amount without changing your habits. And the same goes for your heating system. By sealing drafts, using timers, layering up and being smart about your heating system, you can stay warm and cosy this winter without breaking the bank.

Every little bit counts. Small savings on your heating bill add up over the colder months. If you're unsure about your heating system or want advice tailored to your home, consider calling a local professional to take a look. That way you can stay warm, stay savvy and enjoy an Aussie winter without the financial chills.

About the author
Chloe Jones Personal Finance Writer
Chloe is a seasoned financial services professional with over 15 years of experience in banking, financial strategy, and risk management. She shares industry insights as a Financial Services Consultant and writer.
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