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Is Gas Heating Cheaper Than Electric Heating?

Gas Heating and Electric Heating Cost Comparison

Is gas heating cheaper than electric heating?

When winter hits and the temperatures start to plummet, we all rug up, put the kettle on and switch on our heating systems. When it’s cold and miserable, the question of whether your heating system is powered by gas or electricity is probably the least of your worries. But once the energy bills start coming in, the differences between gas heating and electric heating can be stark. So what is the best choice for winter heating in colder Australian states like Victoria – gas or electric? Let’s put them head to head. 

Cost to produce versus cost to use

 Gas and electricity are abundant resources in Australia and are readily available wherever you are. Gas is taken from natural resources across the country while electricity is generated by your local power station. On a very basic level, gas is a cheaper commodity than electricity so it’s less expensive to buy and often less expensive to produce.  But that doesn’t necessarily mean that gas is cheaper than electricity overall. There are several factors that will determine whether your power bill will see savings with gas or electricity. 

Installation costs need to be considered

 Whether you opt for gas or electric, you will have to pay installation fees for it to be connected to your home or business. These fees will vary depending on your home or business’s location, whether there are connections available and how many connection points your system will need to work properly. Most Australian homes are connected to mains electricity, so often installing an electric system is fairly straightforward.  However, there are plenty of Australian homes not connected to mains gas, so you may have to pay a bit more for gas heater installation if you’re in that camp. Overall though, the quality of the work done on gas heater installation or electric will also influence running costs. Ensure you use a qualified technician with an excellent reputation. 

Energy efficiency creates the savings

 So if gas is cheaper as a commodity but electricity connections are more readily available, where do the real cost differences emerge?  If you’re looking for true energy savings, efficiency is the watchword – and gas is considered to be one of the most efficient forms of energy on the planet! Gas provides instantaneous heat that brings a heating system to its desired temperature faster than electricity and loses less energy in the transfer process. These factors mean that standalone gas heaters and gas-fired central heating systems are usually less expensive to run than electric systems. They also come with a five star energy efficiency rating system, so consumers can choose the most efficient model to match their budgets. 

Go for gas!

 Cheaper running costs combined with a lower commodity price mean that gas is usually the cheaper option compared to electricity for Australian households and businesses. There may sometimes be higher installation costs, but in the long run, your power bills should be lower with a gas heater.