Heating & Cooling

Smart strategies for home heating and cooling

On this page, you’ll find useful information about heating and cooling your home efficiently:

Cooling

To combat those hot, humid days and nights, try first to reduce the need for cooling and select an appropriate mix of fans and air conditioners for each room.

Passive cooling

The most efficient and cheapest way to cool your home is to need less cooling in the first place. The following small, low-cost changes can make a big difference to comfort and running costs:

  • External shading: blinds, awnings, and eaves that block direct summer sun (especially on west-facing windows) keep the heat out before it even gets inside. [See below]
  • Sealing and insulation: gaps around doors and windows, and poor ceiling insulation, let cool air escape and hot air in. [Add link to draughtproofing page]
  • Smart use of your thermostat: every extra degree you cool below around 24–25°C adds noticeably to your running costs. Setting a moderate, consistent temperature is often more efficient than blasting the system cold and switching it off and on.

Shading

If you are limited in what you can do, focus on shading west-facing windows from the low, intense afternoon sun.

External shading aims to block heat before it enters the house and is generally more effective than internal shading. Some options include:

  • Eaves and awnings: These should be sized to block high summer sun on north-facing windows while still letting in lower-angle winter sun.
  • External louvres or shutters: Preferably adjustable, so they can be closed during summer heatwaves and opened in winter.
  • Shade sails or pergolas with deciduous plantings: These may be especially useful over west-facing windows and outdoor living areas that receive most afternoon sun.
  • Deciduous trees or vines on the north and west sides: These provide summer shade and drop leaves to let winter sun through.
  • External blinds: Can be a good retrofit option for homes without eaves, particularly on west-facing walls.

Internal shading is typically easier and cheaper to retrofit compared to external devices but less effective since heat has already entered the house. Remember to close blinds/curtains facing west or north during the hottest part of the day when possible.

  • Block-out curtains with pelmets: The pelmet is key; it stops hot or cold air circulating behind the curtain and undoing the benefit.
  • Honeycomb (cellular) blinds: Trap an insulating layer of air, helping in both summer and winter.
  • Light-coloured or reflective backing on curtains/blinds: Reflects heat in summer.
Photo by Jim Carroll on Unsplash
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Cooling choices

Fans

Before air conditioning became popular, most homes used ceiling fans. Fans can still help beat the heat on their own or when used with air conditioning.

Many modern fans now have a Direct Current (DC) motor which use about 70% less electricity than older-style AC fans, making them cheaper to run and better for the environment. They’re also quieter, sleeker, and usually come with more speed settings, so they are ideal for bedrooms, enabling you to get a good sleep even on those hot humid summer nights.

By using fans alongside air conditioning you can set the thermostat a couple of degrees warmer while feeling just as cool. In winter, reversing their direction recycles the warmer air that has risen to the ceiling.

Reverse-cycle air-conditioners

Reverse-cycle (also called “heat pump”) air conditioners are the most efficient way to both cool and heat your home from a single system. An old, inefficient, or poorly-sized system can cost you hundreds of extra dollars a year. 

When selecting a system, look for:

  • A high star rating: the more stars on the Zoned Energy Rating Label, the less electricity it uses for the same cooling output.
  • Correct sizing for your room or home: an undersized unit will run constantly and struggle on hot days; an oversized one wastes energy and money. A good installer will size the system to your space, insulation, and orientation.
  • Split systems for single rooms, or ducted reverse-cycle for whole-home comfort: the right choice depends on your layout and how many rooms you need to cool at once.

Ventilators

Good ventilation protects your home from mould and damp, which can be a particular problem in older homes. Ventilation and insulation should be considered together, not separately. Sealing up a home to make it more energy efficient, without also fixing exhaust ventilation, can trap moisture inside and make mould problems worse. 

You will need controlled ventilation in the following areas:

Bathrooms: Exhaust fans should duct outside (not into the roof space) to clear steam properly.

Kitchens: A rangehood ducted to the outside removes cooking moisture and grease-laden air before it settles into cupboards, ceilings and walls.

Laundries: Vent dryers to the outdoors, and try to avoid drying clothes inside on wet days.

Subfloors: Poor subfloor ventilation is a major driver of mould and timber rot.

Roof cavities: Whirlybirds or ridge vents help older homes with minimal roof ventilation, reducing summer heat build-up and stopping condensation forming in the roof space over winter.

Heating

Reducing demand

The cheapest heat is the heat you don’t lose in the first place. A few changes make a real difference to comfort and running costs:

  • Draught sealing: gaps around doors, windows, and floorboards let warm air escape constantly. Sealing these is often the lowest-cost, highest-impact change you can make.
  • Ceiling and underfloor insulation: poorly insulated homes lose a large share of their heat straight through the ceiling and floor, no matter how efficient the heater is.
  • Curtains and window coverings: heavy curtains closed at night significantly cut heat loss through glass, which is one of the biggest weak points in most homes.
  • Zoning your heating: heating only the rooms you’re using, rather than the whole house, cuts running costs without sacrificing comfort where it matters.
  • Smart use of your thermostat: every extra degree above around 18–20°C adds noticeably to running costs. A steady, moderate temperature is more efficient than short bursts of high heat.
Photo by Arthur Lambillotte on Unsplash

Heating choices

Electric heaters

  • Includes reverse cycle air conditioners, bar radiators, fan heaters, oil columns. 

Reverse cycle air conditioners move three to six units of heat into your home for every unit of electricity it uses, making it the most efficient of all heating options. 

Even though they are more expensive to buy, they are the cheapest to run, while also providing summer cooling. 

Gas heaters

  • Includes freestanding units, wall furnaces, or ducted gas heating; flued and unflued. 

Burning gas releases CO₂ from the heating appliance and methane in extraction and distribution, another powerful greenhouse gas. Unlike electricity that lowers emissions as more renewables enter the system, gas emissions will not reduce significantly over time. 

Unflued gas heaters also release nitrogen dioxide, carbon monoxide, and fine particulates within the home, all of which have health implications,  and can lead to condensation and mould in poorly ventilated rooms.

Supply of bottled gas is expensive and often inconvenient. On top of this, all gas appliances require regular safety checks, adding to the overall running costs. 

Wood heaters

  • Includes open fires and closed wood heaters.

Most people enjoy the vibe of a fire; however, it is not an efficient way to heat your home and, unless you have a cheap source of wood, it can be expensive.  The particulates emitted from burning wood also reduces the local air-quality and affect respiratory health within the community.

Reverse-cycle heating: The smart choice 

 The same reverse-cycle (“heat pump”) system that cools your home in summer is also its most efficient heater in winter. 

When choosing a system, look for:

  • A high star rating: Check the heating side of the Zoned Energy Rating Label, not just the cooling rating, since some systems perform better in one mode than the other.
  • Correct sizing for your space: Undersized systems struggle to keep up on the coldest nights; oversized systems cycle inefficiently. A good installer takes into account your room, insulation, and orientation.
  • Split systems for single rooms, or ducted reverse-cycle for whole-home heating: The right fit depends on your layout and how much of the house you need to heat.
 

See Grants, Rebates & Finance for heating and cooling equipment

Comparison of heating choices

The table below compares the efficiency, emissions, cost and comfort of the main heating types. 

Comparison of main heater types
Reverse-Cycle Electric (Heat Pump) Gas Heating (Flued / Ducted) Wood Heating (Closed Combustion)
Efficiency 300–600% moves 3–6 units of heat per unit of electricity used 70–95% some heat is always lost up the flue 60–80% for a modern closed heater as low as 10–20% for an open fireplace
How it works Extracts heat from outside air rather than generating it directly Burns natural gas directly to generate heat Burns wood fuel directly; open fireplaces lose most heat up the chimney
Typical running cost Lowest per unit of heat delivered, due to high efficiency Often higher per unit of heat than electric heat pumps, plus maintenance and potential health costs Highly variable — cheap or free if self-sourced, costly if buying seasoned wood; labour-intensive
Emissions (grid electricity) Falls as the grid decarbonises; near-zero if run on rooftop solar Direct fossil fuel combustion in the home — fixed at the point of use, doesn't improve over time Significant particulate/smoke pollution; CO₂ impact debated (can be near-neutral if sustainably sourced)
Comfort Even, thermostat-controlled; doubles as summer cooling Fast, strong heat output; no cooling function Strong radiant heat near the fire, uneven through the house
Convenience Clean and easy to use Supply of bottles can be difficult Needs manual tending
Upfront costs Moderate; higher for ducted whole-home systems Moderate; plus ongoing gas connection fee, regardless of use Moderate to high for a compliant closed heater and flue installation
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