How to Save on Heating This Winter as Gas and Energy Costs Stay High

Gas and oil headlines have made plenty of noise over the past year. For most Victorian households, though, the real issue is simpler: energy costs still feel too high, and nobody wants a nasty surprise when the winter bill lands. The ACCC says the southern states are expected to rely on surplus gas from Queensland and gas storage to meet demand in 2026, which tells you the market is still under pressure. At the same time, broader global energy markets remain volatile, even if oil prices themselves are not the main day-to-day cost driver for most homes here.

The good news is that you do not need to sit in a beanie and two doonas pretending that is a lifestyle choice. A few smart changes can cut heating costs without making your home miserable. In Victoria, heating can account for more than 30% of a household energy bill in winter, so this is the first place to look if you want meaningful savings.

1. Keep your thermostat in the sensible zone

One of the easiest ways to save money is to stop overheating the house. Government energy advice recommends setting your heating between 18°C and 20°C. Every degree above that can add around 5% to 10% to your heating costs. In other words, bumping the thermostat up “just a little bit” can quietly chew through your budget.

If you have a programmable controller, use it properly. Heat the home when you are actually there, and dial it back overnight or when the house is empty. Heating empty rooms for hours is generous, but only to your energy retailer.

2. Heat the rooms you use most

Not every room needs to feel like a balmy day in Noosa. If you have zoning on a ducted system, use it. If you have a split system, focus on the main living area and the rooms you actually occupy. Victorian government advice specifically notes that some ducted systems let you turn off heating to unoccupied rooms, which can help cut wasted energy.

This is one of the most overlooked savings moves because it feels too obvious. But obvious is underrated when it works.

3. Clean filters and service your system

A heater that is dirty, clogged or overdue for a service has to work harder to deliver the same comfort. That means higher running costs and often poorer airflow. Energy Victoria specifically recommends cleaning your heater filter regularly to help it run efficiently.

This is especially important before winter really kicks in. If your system is ageing, noisy, slow to warm up, or giving you patchy comfort across the house, a service can be the difference between “all good” and “why is the lounge still freezing?”

4. Stop the heat leaking out

There is no point paying to heat your home if the warmth disappears through gaps, poorly sealed doors, or under-insulated areas. Draught proofing and insulation matter more than many people realise, and Victoria is continuing to support upgrades in these areas because they directly improve winter comfort and reduce energy use.

If your house feels cold again not long after the heater switches off, the problem may not just be the system. It may be the home itself leaking heat like a colander.

5. Consider whether your old heater is costing you too much

This is the bigger question more households are asking now: is the current system still worth running?

Sustainability Victoria says electric reverse-cycle split systems are the most energy-efficient, lowest-cost heating option available. That is a significant shift in how people should think about heating, especially if they are relying on older gas systems that are expensive to run.

That does not mean everyone should rip out gas tomorrow morning. If your existing system is relatively new and performing well, the smartest short-term move may be servicing it, improving zoning, and reducing heat loss. But if your gas heater is old, inefficient, or struggling, replacing it with an efficient reverse-cycle system may reduce both your running costs and your year-round energy use. That conclusion is supported by both Sustainability Victoria and the Victorian Energy Upgrades program.

6. Check whether you are eligible for upgrade discounts

This is where many households leave money on the table. Under the Victorian Energy Upgrades program, eligible households can access discounts for efficient heating and cooling upgrades. The published figures are substantial: households can receive up to $1,610 when replacing an existing gas space heater with an efficient reverse-cycle air conditioner, and up to $5,530 when replacing an existing ducted gas heater with an efficient ducted reverse-cycle system. Annual operating cost savings can also be significant.

So before assuming an upgrade is out of reach, it is worth checking what support may apply. The upfront cost story is often better than people expect.

7. Think beyond this winter

The energy conversation is no longer just about getting through one cold season. It is about making your home more comfortable, more efficient and less exposed to future price pressure. Victoria’s current policy direction is clearly pushing toward electrification and more efficient heating and cooling, with the aim of helping households lower bills over time.

That means the best heating decision is not always the cheapest quick fix. Sometimes the smarter move is the one that gives you better comfort and lower running costs over the next five to ten years.

Final word

You cannot control the gas market, and yelling at your thermostat rarely changes its attitude. But you can reduce what your home costs to heat this winter.

Start with the practical wins:

• keep settings between 18°C and 20°C

• heat the rooms you use

• clean filters and book a service

• seal draughts

• review whether an old gas system is still the right fit

• check available upgrade discounts

If your current setup is not delivering comfort without bill shock, this winter might be the right time to reassess it properly.