Electric vs Gas Heating

Through Australia’s cold winters, your home needs a reliable, efficient heating system to keep you warm. There are a variety of options to choose from, with many homeowners starting by deciding between the two main fuel sources: electric and gas-powered heating.

Both options have clear advantages that could make them worthwhile. Gas heating excels at warming large spaces, with rapid heat generation and lower operating costs. On the other hand, electric is a more modern choice that is highly energy efficient, with lower upfront costs and maintenance requirements than gas heating. Read on to learn more about both options, and to make the right decision for your home.

What Is a Gas Heater?

A gas heater is a type of heating system that’s connected to a gas fuel source, such as natural gas or LPG (liquefied petroleum gas). It generates heat by burning fuel within a combustion chamber, which is then released into the rooms of your home.

Generally, there are two primary types of gas heaters: flued gas heaters, such as ducted systems, which are permanently installed and connected to a pipe or chimney that directs combustion gases, such as carbon monoxide, safely outside.

There are also unflued gas heaters, which are portable units that heat individual rooms and plug into a gas bayonet, releasing combustion gases directly into the space. These offer excellent portability and can be moved between rooms.

Hydronic heating

Another option worth considering is hydronic heating. Rather than blowing hot air through ducts, it circulates heated water through radiators or pipes beneath the floor, providing a gentle, even warmth. The water can be heated by a gas boiler or an electric heat pump, so hydronic heating isn’t limited to one energy source.

It’s also a particularly quiet option, with no fans blowing dust and other airborne particles around the house. Many systems can be zoned so you’re only heating the rooms you’re using. The main trade-off is installation, as fitting pipes and radiators is generally easier during a new build or major renovation than in an existing home. Running costs will depend on the heat source, insulation and how the system is used. You can learn more about how hydronic heating works or see how it compares with ducted heating.

What Is an Electric Heater?

Instead of being generated by gas, electric heaters generate heat by using electricity. When turned on, electrical energy is converted into heat, which is used to warm an indoor space. Like gas heaters, electric heaters come in various types and sizes, including:

• Fan heaters
• Panel heaters
• Radiant heaters
• Ceramic heaters
• Electric fire heaters
• Electric ducted heaters
• Oil-filled column heaters
• Reverse-cycle air conditioners

Some, such as fan heaters, are designed to heat a single room, while larger systems, such as an electric ducted system, provide heating throughout an entire home. They are a popular heating choice because of their ease of operation and availability in a range of styles to suit different homes.

Gas vs Electric Heater

When deciding between a gas or electric heater for your home, we recommend considering the following factors:

Upfront and running costs

Electric heaters tend to have a lower upfront cost, particularly portable models that just plug into a power outlet, often costing under $100. Homeowners may also have access to heating and cooling discounts when they install an efficient electric system. Through the Victorian Energy Upgrades program, homeowners can receive discounts of between $2,000 to $5,000 when replacing an existing gas ducted heater with an eligible reverse-cycle air conditioner.

Gas heaters usually have higher installation costs because of the added complexity when connecting to gas lines. Although they usually cost more, gas heaters have historically offered lower running costs, especially if you live in an area where natural gas is less expensive than electricity. This can make gas heaters a cost-effective choice, particularly for colder climates where heaters are needed for extended periods.

However, gas prices have increased in recent years, so depending on where you live, it may not be a cheaper option. Furthermore, while gas may be cheaper to buy per unit, you also need to factor in efficiency, as some gas heaters lose more energy during operation than electric systems.

For a practical 2026 Victorian comparison, let’s say you need 5 kW of heat for an hour, with electricity costing 28 cents per kWh and natural gas costing 4 cents per MJ. A reverse-cycle system delivering 3.5 units of heat for each unit of electricity would cost about 40 cents an hour. An 85%-efficient gas heater would cost roughly 85 cents an hour, while a standard electric resistance heater would cost around $1.40 an hour for the same amount of heat. These are examples rather than fixed prices, and don’t include daily supply charges, which can add to the cost of keeping a gas connection. Check your own rates using Victorian Energy Compare.

Ultimately, the exact overall cost of heating will depend on the type of heater, its efficiency, local energy prices and how frequently it’s used. Reach out to the team at Simplyair for an exact quote for you.

Winner: Electric for upfront costs, varies for running costs.

Energy efficiency

Energy efficiency should be an important factor because it directly impacts how much energy your heater needs to warm any given space.

This is where electric heaters really shine. Standard electric resistance heaters are close to 100% efficient at the point of use, so basically all the electricity they consume is converted into heat. Reverse-cycle air conditioners work differently, transferring heat rather than generating it, and can deliver three to six units of heat for every unit of electricity used.

Although gas heaters are still efficient, they will lose some energy through combustion and exhaust, typically operating at 70-90% efficiency. Though the efficiency of contemporary gas heaters has advanced significantly, with many high-efficiency models available today, reverse-cycle electric heaters are generally the better option in this regard. When comparing models, it’s also worth checking the Zoned Energy Rating Label or using the Energy Rating Calculator to get a better idea of their running costs.

Winner: Electric heater

Heating performance

You can’t really go wrong with either option when it comes to pure heating performance, as they both can deliver exceptional results in different ways.

Gas heaters can deliver a powerful, high-intensity heat to quickly warm up large, open-plan areas almost instantly. Electric heaters will tend to offer greater variety, with portable fans for individual rooms and reverse-cycle systems capable of heating multiple areas.

Like all these factors, the level of heating performance will depend on the exact type of heater you are using; however, generally both gas and electrical can be great options.

Winner: Tie

Installation

Electric heaters are usually simpler to install, especially portable heaters that only require a suitable power outlet. Even larger electrical systems, like a split-system or ducted reverse-cycle system, will require basic electrical work, but remain relatively straightforward for a professional and don’t require any major gas infrastructure.

On the other hand, gas heaters will generally require a more time-consuming and complex installation. Depending on the type of system and property, the installation may require a gas connection, with flues, ventilation and other modifications. Particularly if your home doesn’t have an existing gas supply, the installation will likely be more costly and time-consuming than a similar electrical heater.

Winner: Electric heater

Maintenance

Electric heaters are virtually maintenance-free. They generally require fewer ongoing maintenance checks because they don’t have any combustion components or gas connections. Basic upkeep will generally include cleaning filters, vents and heating components, depending on the type of electrical heater.

Gas heaters have a much stricter maintenance schedule to ensure they operate safely and efficiently. A regular professional service will be required at least every one to two years, to check the burner, flue, ventilation and other components for potential issues. The extra maintenance of a gas heater should be an important consideration when comparing the two options.

Winner: Electric heater

Safety

When properly installed and maintained, both gas and electric heaters can be used safely. Gas heaters will carry some inherent safety risks, including the possibility of carbon monoxide leaks or gas line faults. Unflued gas heaters will also release moisture into the air, which can degrade indoor air quality when unventilated. Although modern safety features and expert installation will reduce these risks, homeowners must use detectors and have their systems inspected regularly.

Electric heaters are inherently safer because they don’t produce any combustion gases inside the home. There are still some potential safety concerns around fire or electrical risks when overloaded or when positioned too close to flammable material.

Winner: Electric heater

Environmental impact

The environmental impact should be another crucial aspect to consider, and will largely depend on where the energy is coming from.

Because gas is a fossil fuel, burning it will release carbon dioxide and other greenhouse gas emissions that contribute to climate change. Furthermore, extracting natural gas can lead to habitat destruction and water contamination.

Electric heaters are generally more eco-friendly, especially when the electricity comes from renewable energy sources like solar panels or renewable energy contracts. Particularly as electricity grids continue to transition towards green energy, electric heating is recognised as the more sustainable choice, as many gas heaters are being phased out for new builds.

Winner: Electric heater

Which One Is Right for You?

Once you’ve weighed up these factors, choosing between a gas and electric heater ultimately comes down to personal preference.

When is a Gas Heater Worth It?

If you already have an existing gas connection and you want strong, fast heating for a larger living area, then a gas heater may be worth it. Gas heaters can warm a space quickly and provide consistent heat, making them well suited to colder climates or homes that need heating regularly for long periods of time. They might also be worth it if replacing an existing gas system is more practical than converting your home to electric heating. However, we recommend weighing up local gas prices, as well as installation and maintenance costs before making any decision.

When is an Electric Heater Worth It?

An electric heater is worth it for homes that want an energy-efficient heating option that’s simple to install and maintain. They are perfect for homes that don’t have an existing gas connection, to avoid the additional cost and complexity of installing a gas heater. They are also a great choice if you want to reduce your household reliance on fossil fuels, with a variety of flexible heating options ranging from portable heaters for individual rooms to efficient reverse-cycle systems for larger spaces.

FAQs

Is gas or electric heating better for a large room?

Gas heaters are ideal for heating large or open-plan areas quickly with strong heat. Electric heaters are much better suited to smaller rooms, though larger reverse-cycle systems can heat large spaces efficiently.

Can gas heaters operate during a power outage?

Most modern gas heaters will not operate during a power outage. This is because they may require electricity to spark the gas burner into action. Although many older models, like radiant wall heaters, may still work.

What is the main advantage of an electric heater over a gas one?

Homeowners will often prefer an electric heater for its energy efficiency, as it can convert close to 100% of the energy consumed into heat. It’s also much easier to maintain with a simpler installation process.

Is gas or electric heating safer?

Because there’s no combustion, electric heating is generally safer than gas heating, with no threat of gas leaks or carbon monoxide poisoning.

Should I replace my gas heater with an electric heater?

Yes, if you value lower running costs and lower greenhouse gas emissions, then replacing a gas heater is generally worth it. Government incentives and rebates will also make it substantially cheaper to install a modern electrical heater.

While both gas and electric heating can keep your home comfortable, the right choice will largely depend on your budget, existing home setup and heating needs. If you’re still unsure which option is the best for your home, please reach out to the team at Simplyair for expert advice.