As energy prices rise across Australia in 2025, many households are feeling the pinch when it comes to heating and cooling costs.
Whether you live in the tropics, the desert, or the cooler states, controlling your indoor climate can account for up to 40% of your energy bill — that’s one of the biggest household expenses.
But the good news? You don’t have to sacrifice comfort to save money. With a few smart strategies and small upgrades, you can cut your heating and cooling costs without turning your home into an icebox or sauna.
Here’s how to stay warm in winter, cool in summer, and kind to your wallet all year round.
1. Start With Smart Temperature Settings
One of the simplest and most effective ways to reduce energy usage is to adjust your thermostat.
In winter, set your heater to around 18–20°C.
“To maintain an energy-efficient unit, we suggest setting your indoor temperature to 24–26°C in summer”, says Mr Emergency
Every degree above or below these ranges can increase your energy use by 5–10%. So, while it may be tempting to crank it up on a cold morning or blast the A/C in the afternoon heat, those extra degrees add up quickly.
Also, if you’re out for long periods, turn systems off or set timers rather than letting them run all day.
2. Seal Up Draughts and Gaps
A lot of heating and cooling is lost through small cracks around doors, windows, vents, and even electrical outlets. If your home isn’t well sealed, you’re paying to condition the outdoors.
Here’s what to do:
Use weather stripping on doors and windows.
Install door snakes or draught stoppers at the base of external doors.
Seal up unused fireplaces or vents.
Check for gaps around skirting boards and floorboards in older homes.
By simply sealing air leaks you could reduce your heating and cooling costs by up to 25%.
3. Insulate Your Home Properly
Insulation is one of the best investments you can make for long-term energy savings.
Roof insulation can reduce heating and cooling costs by 30–45%.
Wall insulation also makes a big difference, especially in brick veneer or weatherboard homes.
Underfloor insulation can help in raised homes or those with timber floors.If you’re not sure about your insulation, it might be time to get a home energy assessment.
4. Use Curtains and Blinds Wisely
Windows can be a major source of heat gain in summer and heat loss in winter.
In winter, open curtains during the day to let the sun warm your home naturally, then close them at dusk to keep the warmth in.
In summer, keep blinds and curtains closed during the hottest parts of the day to block heat from entering.
Go for thermal-backed curtains or honeycomb blinds for added insulation. Even roller blinds can help regulate indoor temperature if used correctly.
5. Switch to Energy-Efficient Appliances
If your heater or air conditioner is over 10 years old, it’s probably guzzling electricity.
Look for units with a high Energy Star rating — the more stars, the more efficient. Consider reverse-cycle split systems, which are often the most efficient form of electric heating and cooling.
Other smart upgrades:
Install a smart thermostat to automate temperatures based on occupancy and time of day.
Consider zoned heating or cooling, which lets you condition only the rooms you’re using.
6. Maintain Your System
Just like a car, your heating and cooling systems need regular maintenance to run efficiently.
Here’s a quick checklist:
Clean or replace air filters every 3 months.
Check for blockages in vents or outdoor condenser units.
Have your system professionally serviced once a year.
Dust and grime build-up can reduce efficiency by up to 15%, so your system works harder — and your bills go higher.
7. Use Ceiling Fans and Natural Ventilation
Ceiling fans cost just a few cents an hour to run and can make a room feel 3–4 degrees cooler in the summer, so you can raise the air conditioner temperature without sacrificing comfort.
In winter, reverse the fan direction to gently push warm air down from the ceiling. Most fans have a small switch near the motor to do this.
Also, don’t underestimate the power of natural cross-ventilation. Open windows on opposite sides of your home in the evening or early morning to flush out hot air.
8. Get Solar (If You Haven’t Already)
Solar panels are one of the best ways to offset heating and cooling costs in the long run. With over 3.6 million solar systems installed across Australia, solar has never been more affordable or accessible. Pair your panels with a battery system or use smart apps to run heating/cooling during solar hours to maximise your savings.
Even without a battery, solar can save you daytime air conditioning costs — especially in summer when the sun is high.
9. Use Each Room Wisely
If you work from home or spend time in just one or two rooms during the day, you don’t need to heat/cool the whole house. Close doors to unused areas and focus your energy where it matters.
Also, consider moving activities to naturally warmer or cooler parts of the house depending on the season — e.g., using a north-facing room in winter for reading or working.
10. Check If You’re Eligible for Rebates
In 2025, there are still federal and state-level rebates available for Australians to improve their home’s energy efficiency. These might include:
Discounts on reverse-cycle air conditioners
Rebates for insulation upgrades
Assistance for low-income households to switch to efficient systems
Visit the Energy.gov.au Rebates page to see what’s available in your area.
Cut Energy Bills in 2025
Heating and cooling your home doesn’t have to break the bank. With a little awareness and some simple changes, you can save big and stay comfortable all year round.
From sealing gaps and upgrading your appliances to using curtains, fans, and solar smarter, there’s something every Australian home can do.
This 2025, let your home work with you — not against you — to keep energy bills down.
