Winter Heating Cost Calculator Guide for Australian Homes in 2026

Australian households experienced substantial changes in measured electricity costs during 2026. According to the Australian Bureau of Statistics, electricity costs rose by 32.2% in the 12 months to January 2026, largely because households had used up government electricity rebates. Excluding the effect of those rebates, electricity prices rose by 4.5%.

Heating and cooling can account for 20% to 50% of household energy use, depending on the climate, building and household, according to the Australian Government’s heating and cooling guidance. Calculating hourly and seasonal heating costs can help you compare appliances and identify potential savings.

The 2026–27 Default Market Offer has applied since 1 July 2026 to eligible standing-offer customers in New South Wales, South East Queensland and South Australia. According to the Australian Energy Regulator’s final 2026–27 DMO decision, residential flat-rate standing-offer prices fell by 3.4% to 5.0% in NSW and 7.2% in South East Queensland, while South Australian prices rose by 1.4%. Customers on market offers may pay different rates.

Key Takeaways

• At an example rate of 33c/kWh, a 2,000W electric heater costs approximately $0.66 per hour or $360.36 when used for six hours per day over 13 weeks.

• Reverse-cycle systems can deliver approximately three to six units of heat for every unit of electricity consumed.

• Peak shifting may reduce costs on a suitable time-of-use plan, but charging and inverter losses must be included.

• Cracks and gaps may account for approximately 10% to 15% of household heat loss.

• Portable power stations are generally more practical for electric throws and low-wattage personal heating than for high-wattage space heaters.

How Much Does Heating Cost in Australia During Winter?

Heating costs depend on four main inputs:

1. Heater wattage.

2. Electricity tariff.

3. Hours used per day.

4. Number of days used.

The examples below use 33c/kWh as an illustrative rate, not as a verified national average. Use the usage rate shown on your electricity bill for a household-specific result.

Electric Resistance Heater Costs

Use this formula:

Hourly cost = wattage ÷ 1,000 × electricity rate in dollars per kWh

At 33c/kWh:

The 13-week estimates use 91 days. They cover electricity usage charges only and exclude the household’s fixed daily supply charge.

Electric Resistance, Reverse-Cycle and Gas Heating

Electric resistance heaters produce approximately one unit of heat for each unit of electricity consumed.

Reverse-cycle air conditioners transfer heat rather than producing it directly. The Australian Government states that an efficient reverse-cycle system can provide approximately three to six units of heating energy for each unit of electricity consumed.

Gas heating must be calculated separately because gas is generally billed in megajoules rather than kilowatt-hours. Gas-heater efficiency also varies according to the model, design, flue arrangement and installation.

The following examples assume that each system delivers 2kW of usable heat for six hours per day over 91 days.

These are comparison examples rather than guaranteed household costs. Actual results depend on tariffs, equipment efficiency, outdoor temperature, thermostat settings and the thermal performance of the building.

Victoria and the Australian Capital Territory also apply different rules to new gas connections:

• Victoria: Specified new dwellings and residential developments requiring planning permits have generally been required to be all-electric since 1 January 2024. More information is available in the Victorian Government’s all-electric new homes guidance.

• Australian Capital Territory: New gas-network connections have generally been prevented in residential and specified commercial and community zones since 8 December 2023, subject to exemptions and transitional arrangements. Details are available through the ACT Government’s electrification pathway.

Winter Heating Cost Calculator

Use the following four inputs:

Electricity Formula

Total heating cost = wattage ÷ 1,000 × tariff in dollars per kWh × hours per day × number of days

For example:

2,000W ÷ 1,000 × $0.33 × 6 hours × 91 days = $360.36

A second example using a 2,400W heater for five hours per day at 28c/kWh would be:

2,400W ÷ 1,000 = 2.4kW

2.4kW × 5 hours = 12kWh per day

12kWh × $0.28 = $3.36 per day

Over 90 days:

$3.36 × 90 = $302.40

Gas Heating Formula

If the heater lists its gas input in megajoules per hour:

Hourly gas cost = gas input in MJ/hour × gas rate in dollars per MJ

If only the required heat output and estimated efficiency are known:

Gas input in MJ/hour = usable heat output in kW ÷ efficiency × 3.6

For example, delivering 2kW of usable heat at 85% efficiency requires:

2 ÷ 0.85 × 3.6 = approximately 8.47MJ/hour

At an illustrative gas rate of 4c/MJ:

8.47 × $0.04 = approximately $0.34 per hour

Electricity and gas calculations should remain separate because they use different billing units and efficiency measurements.

Saving Money Through Tariff Shifting

A portable power station may support peak shifting when a household is on a suitable time-of-use electricity plan. It can be charged during a lower-cost period and discharged when the household’s electricity rate is higher.

However, charging and inverter losses mean that more electricity must be purchased than is eventually delivered to an appliance. On a flat-rate electricity plan, charging from the grid and using the stored energy later will generally not reduce electricity usage charges.

Peak, shoulder and off-peak periods vary by electricity network and retail plan. There is no universal Australian 5pm-to-9pm peak period. Check the rates and time windows shown on your electricity plan.

Solar Sharer Offer

The Solar Sharer Offer is an opt-in option for eligible smart-meter customers in DMO regions. It provides three free midday hours:

• 11am to 2pm in NSW and South East Queensland.

• 12pm to 3pm in South Australia.

Rates outside the free period may be higher than standard time-of-use rates, so customers should compare the complete plan rather than considering only the free window. Eligibility and tariff details are explained in the AER’s 2026–27 DMO announcement.

Peak-Shifting Example

Assume that a 2,000W heater runs for two hours:

2kW × 2 hours = 4kWh of delivered energy

If the portable power system has an assumed round-trip efficiency of 85%, it must purchase:

4kWh ÷ 85% = approximately 4.71kWh

Assume:

• Off-peak electricity rate: 15c/kWh

• Peak electricity rate: 50c/kWh

Charging the battery would cost:

4.71kWh × $0.15 = approximately $0.71

Running the heater directly from the grid during the peak period would cost:

4kWh × $0.50 = $2.00

The estimated gross usage-charge saving would therefore be:

$2.00 − $0.71 = approximately $1.29

This example excludes battery degradation, fixed supply charges and losses beyond the assumed 85% round-trip efficiency. Actual savings depend on the household’s tariff.

Choosing a BLUETTI Power Station for Heating

Portable power stations are generally more practical for electric throws and low-wattage personal heating than for high-wattage space heaters.

Use this formula to estimate runtime:

Estimated runtime ≈ battery capacity × usable-energy factor ÷ appliance wattage

The following examples assume that 85% of the stated battery capacity is available to an AC appliance after inverter losses and system consumption.

BLUETTI Elite 200 V2

The BLUETTI Elite 200 V2 provides 2,073.6Wh of capacity and 2,600W of rated AC output.

Estimated usable energy:

2,073.6Wh × 85% = approximately 1,762.6Wh

Estimated continuous runtime:

• 200W: approximately 8.8 hours

• 400W: approximately 4.4 hours

• 2,000W: approximately 53 minutes

The Elite 200 V2 can also support compatible pure resistive loads of up to 3,900W in Power Lifting Mode. Its normal rated AC output remains 2,600W. Power Lifting is not the same as ordinary 3,900W continuous output or surge protection.

BLUETTI Elite 300

The BLUETTI Elite 300 provides 3,014.4Wh of capacity, 2,400W of rated AC output and a weight of 26.3kg.

Its larger capacity supports longer runtimes at the same load. Its 10ms UPS switchover can help maintain compatible appliances during a blackout, provided that the load remains within the unit’s output limits.

BLUETTI Apex 300

The BLUETTI Apex 300 provides 2,764.8Wh of capacity and 3,840W of rated AC output, making it suitable for higher combined loads and expandable home-backup applications.

Its LiFePO₄ battery is rated for 6,000+ cycles to 80% of original capacity.

Improving Home Heating Efficiency

The Australian Government’s household energy guidance recommends setting winter heating at approximately 18°C to 20°C. Each degree above this range may increase energy use by approximately 5% to 10%.

Cracks and gaps may account for approximately 10% to 15% of household heat loss, according to the ACT Government’s insulation guidance. Door seals, window seals and draught excluders can reduce uncontrolled airflow, although actual savings depend on the property and quality of the work.

Do not block ventilation required by open-flue or unflued gas heaters.

State assistance may also help eligible households improve home efficiency:

• Victoria: From 1 October 2026, Victorian Energy Upgrades ceiling-insulation discounts will be available to eligible homes with no or insufficient ceiling insulation. The Victorian Government expects the discount to reduce average installation costs by approximately 30% to 50%.

• Australian Capital Territory: Eligible homeowners may receive 50% of approved upgrade costs, up to $2,500, for measures including ceiling insulation, reverse-cycle heating and cooling, hot-water systems and electric cooking appliances through the Home Energy Support Program.

• New South Wales: The Home Energy Saver program offers eligible households zero-interest loans of up to $15,000 for approved upgrades. Separate discounts of up to $4,000 are also planned for eligible households.

Taking Control of Winter Heating Costs

Winter heating costs depend on appliance wattage, tariff, operating time and how effectively the home retains heat.

At the illustrative rate of 33c/kWh, a 2,000W resistance heater costs approximately $0.66 per hour or $360.36 when used for six hours per day over 13 weeks.

Reverse-cycle systems can provide more heat per unit of electricity, while draught sealing and insulation can reduce heating demand. A BLUETTI portable power station can provide backup electricity and may support peak shifting on a suitable time-of-use plan, provided that conversion losses and complete tariff conditions are included in the calculation.

FAQ

How much does a space heater cost to run?

At an illustrative rate of 33c/kWh:

• A 1,500W heater costs approximately $0.50 per hour.

• A 2,000W heater costs approximately $0.66 per hour.

Used for six hours per day over 13 weeks, the estimated costs are $270.27 and $360.36, respectively.

How do I calculate winter heating costs?

For an electric heater:

Cost = wattage ÷ 1,000 × electricity rate × hours per day × number of days

For a gas heater:

Cost = gas input in MJ/hour × gas rate per MJ × operating hours

Can a portable power station run an electric heater?

Yes, provided that the heater remains within the power station’s rated output. However, high-wattage heaters consume stored energy quickly.

Assuming 85% usable AC energy, the Elite 200 V2 can run:

• A 200W load for approximately 8.8 hours

• A 400W load for approximately 4.4 hours

• A 2,000W load for approximately 53 minutes

Is reverse-cycle heating cheaper than gas?

Reverse-cycle heating can deliver approximately three to six units of heat per unit of electricity. Whether it costs less than gas in a particular home depends on local tariffs, system efficiency, climate, insulation and required heat output.

Did electricity prices fall from 1 July 2026?

The 2026–27 DMO reduced residential flat-rate standing-offer prices by 3.4% to 5.0% in NSW and 7.2% in South East Queensland. South Australian residential flat-rate standing-offer prices increased by 1.4%.

These changes apply to eligible standing-offer customers in the DMO regions, not to every Australian household.