Electric Heating & Cooling

A guide to using cheap and efficient heating/cooling in your home.

In Victoria, heating our homes can make up to 40% of our energy usage. Reverse-cycle split system air conditioners are a cost effective, efficient, and environmentally friendly option.

The humble hero

Reverse cycle air conditioners, much like hot water systems, play a significant role in the dynamic landscape of energy efficiency and clean energy usage. Unlike fixed-use appliances such as a refrigerator, a well-designed reverse cycle air conditioner offers greater control over when and how you use energy.

This flexibility is key to optimizing both personal energy costs and overall grid efficiency. With a reverse cycle air conditioner, you can choose to heat or cool your home during off-peak electricity times, potentially reducing your energy bills. For households with solar panels, this can mean utilizing solar-generated electricity to run your air conditioner, tapping into a renewable source of energy and minimizing carbon emissions.

The heat pump technology that is found inside reverse-cycle air conditioners is incredibly efficient, up to 600%! This means that they use a small amount of energy to produce a large amount of heat.

This efficiency is represented by a coefficient of performance (COP) – a ratio of the amount of heat moved to the electrical input into the unit.

What about replacing old air conditioner units?

Old air conditioner units that can only cool your house are not as efficient. Running the unit will be noisier, more expensive, and less environmentally friendly than running a split system, typically costing you 20 to 45 cents per hour. Also, you still need a separate heating unit instead of having one appliance for both!

How do I know which size is good for me?

To find the perfect unit for your house, you must consider:

  • The size of the room you’d like to heat – Typically you should aim for around 1kW per 10 square meters.

  • How insulated your house is. If your house hasn’t been insulated since 2010, or if you’ve got a lot of single glazed windows, then sizing the unit up would be better for you. You can also consider insulating your ceiling to avoid running the unit as often.

Types of Heating Systems

  • Heat Pumps (Reverse cycle air con)

    Recommended. Heat pumps transfer heat from the surrounding air to heat the water which makes them highly efficient, typically using up to 65-75% less energy compared to electric resistance heaters. They work best in moderate to warm climates like we have in Victoria.

    They are also capable of both heating and cooling your home depending on the season.

    There are many options available depending on your needs - single split, multi split, and ducted.

    Generally they have a higher upfront cost. However, this is partially offset with current government rebates and they can save you money in the long run through reduced energy consumption.

  • Electric Heaters (Fixed & Portable)

    Electric heaters use an electric element and fan convection to heat a room.

    They can be fixed to a wall and are hard-wired to the switchboard or portable and plug into any socket.

    They have higher running costs than other heating options.

    Fixed electric heaters are no longer very common, but can be found in older houses and units.

    Many people still rely on portable heaters in small rooms as they are cheap to buy.

  • Gas Heating

    Gas systems use fossil gas or LPG as a fuel source. In Victoria, the most common is ducted gas systems.

    Recent gas prices make them more expensive than reverse cycle units and their emissions contribute to air pollution and fuel climate change which is why we do not support the installation of gas appliances. They also require venting and maintenance for safety as they are burning a combustible and toxic fuel.

  • Hydronic Heating

    Hydronic systems heat the whole house by heating water in a gas boiler and circulating it through radiators (most common), pipes embedded in a concrete slab, or fan-coil units.

    The water then returns to the gas boiler to be re-heated.

    These systems are commonly fueled by gas, however there are now options to use heat pumps in a hydronic system. We recommend talking with a specialist installer to assess your options here.

 Government Incentives Available

Currently there are both State and Federal Government rebates or incentives for installing heat pump hot water systems, which you are entitled to use together. These are:

  • State: The Victorian Energy Upgrades Program (VEU). Through this program rebates are offered to replace inefficient gas or electric heating systems with efficient alternatives, such as a reverse cycle air con. Rebate amounts vary depending on the brand of heat pump installed. Learn More.

How much will you receive?

Unfortunately it’s not a simple amount paid to you and the system is quite complicated and not one you undertake yourself (the licensed installer does it on your behalf as they work with certificate trading schemes). How much you receive off your new heat pump system depends on a range of factors such as what you’re switching from and the efficiency of the new system you choose.

However, it’s possible to receive discounts of up to $10,000 when you update your heating or air conditioning system to the most advanced reverse cycle technology.

How to claim the rebates

  1. Research what type of hot water system you may want and potential products

  2. Connect with one or more installers for a quote and to discuss the most suitable system for you. Confirm that they are licensed to claim the rebates for you.

  3. The installer will organise the installation and rebate so you receive a reduced final bill.

Reverse Cycle Tips & Tricks

Below we have provided a guide of some reviewed options from the top to the lower end of the market. There is a huge range in price (anywhere between $1500 - $5500 before rebates). Typically the more expensive heat pumps are quieter, use less electricity, have better warranties and use more environmentally friendly refrigerants than their cheaper counterparts. 

We encourage you to consider the following elements when making your choice:

  • If a model has a timer or wifi/wired control it will enable you to time when you heat your home so it can be run off your solar power. This is the optimal method to heat your home from an emissions and cost savings viewpoint.

  • Whether you choose a split, multi or ducted system will depend on your homes design, your personal preference, and budget.

    Single split systems are usually the most efficient, unless you require a large amount of heating/cooling units.

  • Look for a high coefficient of performance (COP) rating, indicating greater energy efficiency. The more efficient, the less energy used and therefore lower running costs

  • Some refrigerants are greenhouse gasses. CO2 and R290 refrigerants are good choices for the environment while R410a and R134a are being banned in various regions.

  • Warranties are complex with different periods that cover for labor, tank and parts. Also note that the distance from an approved service agent may add to repair costs.

  • Some Heat Pumps can be noisy, especially cheap models, so consider your neighbours and how close it maybe to any windows.

 

Set your air conditioner to the right temperature

If you crank up your air conditioner too high in winter or too low in summer, you might end up with a bigger energy bill and your air conditioner could wear out faster. We suggest setting it to a comfy 24-26°C in summer and a cozy 19-21°C in winter.

Fun fact: in summer, for every degree you go below this range, your running costs can jump up by about 10%, and the same goes for every degree above in winter. Plus, the less your compressor has to work, the more you'll save on energy costs. Stay comfy and save energy!

Keep your aircon’s filters clean

Keeping your air conditioner's filters clean is super important. When they get clogged with dirt and dust, your aircon has to work extra hard to keep your place just right, and that means higher energy bills. The good news? Cleaning those filters is an easy task and it helps your aircon run smoothly. For more tips on how to do this and other maintenance tricks, have a read of some air conditioning maintenance guides. And remember, always stick to what the manufacturer suggests when you're giving your aircon a clean. Stay cool and keep those filters clean!

Use the features on your unit to reduce energy output

Did you know modern reverse cycle air conditioners are packed with great features to make heating and cooling your home more energy-efficient? Things like timers, human sensors, and zoning can save you energy and money. For instance, turning off areas you're not using with your ducted unit can really cut down on energy use. And setting a timer to kickstart your aircon before it gets super hot outside is a smart move. It's much easier on your unit (and your wallet!) than blasting it during the peak heat.

By making the most of these smart features, you can really trim down running costs. Your air conditioner is not just about keeping you comfortable, it's also pretty smart about saving energy!

Don’t rely solely on your air conditioner!

It’s just as important to make smart moves around the house to ease up your air conditioner's workload and save some cash.

For reverse cycle air conditioners, keeping your doors and windows shut during the day helps a lot. But if you have evaporative coolers, it's a different story - they love a bit of fresh air, so crack open those windows and doors for better airflow.

In winter, let the sunshine in during the day to naturally warm up your space, and then draw the curtains at night to keep that cozy warmth inside. In summer, keep those curtains closed when the sun's beaming in, and open up the windows at night if it's cooler outside to invite a refreshing breeze.

Insulation is crucial! If your home's insulation isn't what it used to be, giving it an upgrade can make a huge difference (effective insulation can reduce your heating bill by 45%). And don't forget about your windows – dressing them up with curtains, roller blinds, or shutters can really help control the temperature.

And don't underestimate the power of ceiling or portable fans. They're great at spreading cool or warm air around your home more evenly and quickly. So, with a few simple steps, you can really boost the efficiency of heating and cooling your home, while keeping those energy bills in check.