Turning the temperature down on your heating can save you money – just don’t make it too cold!
It seems like the Middle East conflict has driven up the price of just about everything. While it hasn’t directly impacted Australian energy prices, experts warn of our reliance on international markets and the uncertainty around how wholesale prices could track in 2026-27.
And with the cost of living already tough enough, it’s worth making some simple changes throughout the home to reduce monthly running costs before the big chill of winter hits.
HOW TO REDUCE POWER COSTS
Energy efficiency consultant and director of Ephe Cal Forsyth says reducing power consumption in the home starts with a clear understanding of what the property is lacking when it comes to thermal performance and energy efficiency. He recommends getting a Home Energy Assessment by an accredited energy assessor.
Cal Forsyth, Director of Ephe, Energy Efficiency Consultant. Picture: supplied
He says sealing cracks and gaps throughout the home can make a big difference.
“This could be by draught-proofing unused chimneys, wall vents, where safe to do so, and weather-sealing windows and doors with carpentry-level solutions,” he says.
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Other steps include improving the thermal efficiency of windows and window coverings, replacing energy chewing heaters with more energy efficient reverse cycle air conditioners and installing solar PV systems with “load shifting household behaviours” that power appliances when energy is most readily available.
Solar panels can save you thousands in running costs. Picture: Getty Images
SAVING THOUSANDS
He says he recently saved a client in Glen Iris, Victoria about $3,322 a year in running costs by improving the energy efficiency of their home from a 2.3 to a +7.3 star rating. The improvements were made through the installation of IC4 rated LEDs and R5.0 ceiling insulation, the filling of wall holes, wall vents and the installation of insulation in the external walls. Any remaining areas of air leakage were also sealed, including the chimneys, gaps, doors, windows, ducting and exhaust fans. Thermal window coverings were also put in place and an old gas heating system was decommissioned. An existing reverse cycle airconditioning system was made more efficient with the addition of a door to separate an open-plan area between the kitchen and stairwell, while a new heat pump hot water system and up to 4.9kW of Solar PV were installed.
Canstar Data Insights director Sally Tindall. Picture: supplied
WINTER MONEY WASTERS
Canstar Data Insights director Sally Tindall says open-plan designs can bleed money in energy costs if not managed well in the colder months.
“The most common energy-draining mistakes are often staring right at you through an open door,” Tindall says. “One major mistake is not thinking about the actual volume of air you are trying to heat.
“Consider creating thermal zones which focus on heating the rooms you’re actually using and shut doors to keep that warmth from wandering into an empty hall. If your home is truly open-plan, you could install curtains to separate spaces as and when you need.”
Airconditioners are cheaper to run than other heaters.
She referenced the cost difference between heating a large room (60sqm) and a medium room (30sqm) based on figures provided by Sustainability VIC.
While heating a large room could cost up to $573 a year using an air conditioner, heating a medium sized room could only cost up to $287 a year.
The price when using heaters, whether electric, panel or fan, is much higher, with large rooms costing up to $1,720 a year and medium rooms costing up to $860.
“Based on these figures, focusing heating on a smaller area could save almost $300 on airconditioning use and/or almost $900 on the cost of heaters,” Tindall says.
Finder energy expert Mariam Gabaji.
CHEAPER SOLUTIONS
Finder utilities expert Mariam Gabaji says those who are renting or can’t afford options like insulation or double glazed windows can still save money on their power bills by changing a few simple habits.
“We have a bad habit of leaving vampire appliances on standby such as TVs, gaming consoles, microwave clocks and chargers,” Gabaji says. “On their own, they don’t use much standby power, but collectively, they can add around $100 to your annual bill and even more if you have many appliances.”
She says if you don’t remember to switch them off yourself, you may want to consider investing in smart power strips that cut power supply automatically when an appliance isn’t in use.
Insulation is a great option for homeowners to consider. Picture: NewsWire/ David Crosling
It’s also worth being extra smart when it comes to heating, she adds.
“Heating and cooling can account for up to 50 per cent of energy use,” she says. “It’s worth keeping an eye on your thermostat. Even turning the temperature down by a couple of degrees can help, as every extra degree of heating can increase energy use by around 10 per cent.
“You could also consider buying an electric blanket or throw to stay warm. These cost 4 cents an hour to run.”
A more immediate change you could make is to shop around for a better energy deal, she says.
“According to the ACCC, households in NSW could save around $300 a year on average by simply asking their retailer to switch them to a cheaper available plan,” she says.
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