Households in the ACT and South Australia face the steepest heating costs this winter, as a new iSelect analysis lays bare how much common appliances add to bills across every state and territory.
The findings land amid a cost‑of‑living squeeze, forcing many to weigh up comfort against rising electricity charges.
According to iSelect, the ACT is the most expensive place in the country to heat a home.
A reverse‑cycle airconditioner used for four hours a day over half the year is estimated to cost $1,471.20 annually.
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South Australians aren’t far behind: a reverse‑cycle aircon is put at $1,164.62 a year, while a window‑wall unit could cost about $694.69 and a portable electric heater around $368.04 under the same assumptions.
Tasmania also feels the pinch, with reverse‑cycle heating estimated at $1,048.58 a year, window‑wall units at $636.64 and portable heaters at $337.04.
Source: iStock
Victoria ranks next, with reverse‑cycle units at $1,045.71, window‑wall systems at $634.89 and portable heaters at $335.12 – its cheaper‑than‑average tariffs helping keep it out of the top three despite cold winters.
New South Wales comes in mid‑pack, where heating with a reverse‑cycle aircon could cost about $938.27 a year on typical usage, while a portable heater may run to roughly $296.30. Queensland, unsurprisingly, is the cheapest state for heating at around $351.32 a year.
The picture flips in summer when Queensland tops the nation for cooling costs, with a reverse‑cycle aircon run four hours a day for half the year estimated at $1,380.61 – almost double the national average of $723.25.
Appliance choice matters
Across most scenarios modelled by iSelect, reverse‑cycle airconditioners are the biggest contributor to heating bills, followed by window‑wall units, with portable electric heaters typically costing less to run over the period studied (noting they usually heat smaller spaces). Usage climbs sharply in colder regions: a reverse‑cycle unit can consume about 4,099 kWh a year under the study’s cold‑climate assumptions, versus roughly 2,608 kWh in average climates and 1,043 kWh in hot climates.
On average, Australians are spending about $893.49 a year on heating alone, iSelect’s research suggests.
Some of that demand is driven by the quality of our housing.
While newer builds meet higher insulation standards, the average home in 2003 carried a NatHERS rating of just 1.8 stars out of 10, and many of those dwellings are still with us. Poor insulation and leaky building envelopes mean heaters must work harder as temperatures drop, sending energy use – and bills – higher.
“Ceiling fans can cost up to 140 per cent less to run than a reverse‑cycle air conditioner, so choosing the right appliance can make a big difference to your bill,” iSelect Utilities General Manager Julia Paszka said.
iSelect Utilities General Manager Julia Paszka.
Meanwhile, underlying price structures help explain why the ACT and South Australia are so costly.
In the ACT, a cooler climate combines with higher network and accessibility costs to push up bills.
Average electricity prices there have risen from about 25 cents per kWh in 2020 to more than 35 cents in 2026 – roughly a 40 per cent lift over six years – and network charges account for around 40 to 50 per cent of a typical bill.
“South Australians had the next-highest heating rates in Australia, due to a few factors. Firstly, there are not enough coal resources, so it relies heavily on gas-fired power, which is one of the most expensive fuels and can drive up energy costs,” Ms Paszka said.
The ACT, SA and Tasmania will face the highest power bills this winter.
“Unlike other states, South Australia has only two major interconnectors, and during high-demand periods they can reach capacity, restricting some residents’ access to cheaper rates. “Finally, renewable energy is growing with solar battery storage; however, it’s not yet sufficient to stabilise the grid across extended periods and has volatile availability, so it cannot offer predictable access and pricing to residents.
Transmission mega‑spend could add $600 to power bills
Further bill pressure could be coming for many on the east coast.
New modelling from independent think tank Policy Institute Australia warns plans to construct $65 to $85 billion of new transmission lines over the next decade could add roughly $600 a year to household electricity bills.
Condon resident Tanja Cornford, has had enough of high power bills. Picture: Alix Sweeney
Under one scenario, the estimated impact is $628.40 per household in Queensland, $522.90 in NSW and $348.00 in Victoria.
Typical small businesses could see power bills jump about 25 per cent, while those using up to 100,000 kWh might face around $10,000 extra annually.
In better news for some, the Australian Energy Regulator’s latest Draft Decision points to a 1.3 per cent decrease in South Australian electricity prices in 2026–27, or about $31 a year on a typical bill.
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