Wood
How expensive?
Nothing is cheaper than free heat - and that's possible if you have a woodburner and can get free firewood. But even if you have to buy firewood, running a woodburner is still one of the cheapest ways of heating your home.
Tip: Firewood prices vary considerably, so shop around and buy at least six months before winter (when prices are likely to be cheaper).
How clean?
Along with wind and hydro, wood is one of the few sustainable carbon-neutral home-heating options. But to get the most heat (and the least pollution), it must be burned hot and in a specially designed firebox. The firewood must also be dry and not too big.
Persisting with an old woodburner or an open fire is throwing away heat and creating health-threatening pollution.
What about open fires?
We haven't included the running costs of open fires using wood or coal in our fuel price comparison, because the figures are off the scale. Open fires cause massive pollution for the heat they produce. And they don't heat the house very well.
More information
Wood pellets
How expensive?
A pellet burner is worth considering if you buy firewood. Their running costs are slightly higher than a woodburner's but you don't have to deal with large amounts of firewood. They also have the advantages of thermostatic and timer control, along with automatic starting on some models.
Tip: The price of wood pellets varies substantially depending on where you live. Check out prices in your region before buying one of these burners.
How clean?
Pellet fires produce less atmospheric pollution than conventional woodburners - and they're carbon neutral because the pellets are made from wood shavings.
- Pellet burners - our buying guide
Electricity
How expensive?
Electricity prices have risen approximately 13 percent in the last year.
Heat pumps are still one of the cheapest heating options and can be retro-fitted into an existing house. But they must be the right capacity for the house and they must be installed properly. Heat pumps can give you enough heat for the average home without having to install special (2- or 3-phase) wiring.
Portable heaters are cheap to buy - although their running costs are quite high (an average of 23 cents per kWh). They're good for that extra temperature boost in specific areas like bedrooms and work areas. For modern well-insulated homes we recommend convection or oil-column models. For poorly insulated older houses with high ceilings, radiant heaters are likely to be more effective - but not in bedrooms or around young children.
To reduce the running costs of portable heaters to half or less, you need to spend money on more expensive and permanently installed equipment. Discounted night rates for night-store heaters and underfloor heating require a separate meter (check with your power company). Underfloor heating can be laid under floating laminate flooring or ceramic tiles; in a new house it can be embedded in an insulated concrete pad.
How clean?
Our electricity comes from a combination of renewable (wind, hydro and geothermal) and non-renewable (gas and coal) sources - so it's only a semi-clean fuel. But in your home, nothing is cleaner. Despite the inexorable rise in the price of electricity, electric heating provides a clean and easy way to heat your home - especially if the house is rented.
More information
- Compare electricity prices at Consumer PowerSwitch
- Choosing an electric heater
- Convection heaters
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Heat pumps
Natural gas
How expensive?
The price of natural gas has stayed relatively constant over the last year. Running costs depend on how you factor in the daily connection charge. If you have a lot of gas appliances (such as heating, water heating and cooking), the connection charge is less significant.
The days of natural gas being a no-brainer for home heating are over: it's still cheaper than electricity for stand-alone heaters, but heat pumps (and, in some cases, night-rate electricity) are cheaper.
Gas has advantages, though. You can get a lot of heat from it - enough for instant hot water and central-heating units.
Make sure every gas appliance you buy has a flue. Unflued gas heaters fill the house with carbon dioxide and water vapour - and if a fault develops, you might end up with carbon monoxide (which is toxic). Even without the carbon monoxide, this is bad news: you might have a warm home, but it'll be damp. If you rent, the need for a flue means gas appliances are off the shopping list.
How clean?
Natural gas is clean-burning for pollutants, but it's a fossil fuel. Burning it adds the "greenhouse gas" carbon dioxide to the environment.
More information
LPG
How expensive?
LPG is now imported and no longer cheap after paying the world price and the cost of getting it here. (See our report on LPG prices for more information.)
The 45kg cylinders delivered to your home cost about $2.50 per kg - that includes rental of the cylinders and delivery. LPG heating appliances using 45kg bottles have running costs broadly similar to those of electric appliances (but not heat pumps).
The 9kg cylinders filled at service stations cost about $3.50 per kg. You also have to buy the cylinder yourself ($45 each) and take it to the service station for filling. That's expensive - around 30 cents per kWh. Running an unflued LPG cabinet heater on a 9kg cylinder is not only a health and safety hazard but also the most expensive way to heat a home.
How clean?
Like natural gas, LPG is clean-burning but adds carbon dioxide to the environment.
Diesel
How expensive?
A couple of years ago, diesel was relatively competitive for home heating. Then along came the big price hikes of a year or so back. Now diesel prices have retreated and prices are broadly comparable to those of natural gas and 45kg LPG cylinders.
The price fluctuations of the last few years highlight the financial risks with this fuel. Diesel is a world commodity and subject to rapid price changes that are completely out of the householder's control.
How clean?
Now that we have low-sulphur diesel fuel, it's relatively clean in terms of pollutants. But it does come from non-sustainable fossil fuel and adds to carbon dioxide emissions.
The sun
It's free, and the most environmentally-friendly home heating option available. You'll need large north-facing windows to allow the sun to shine in during the day, a large thermal mass such as a concrete floor to store the heat, and insulation so the heat isn't lost too quickly at night. And you'll probably still need other heat sources for the coldest days.
If you're designing a new home, incorporating some passive solar heating into the design may not cost very much at all. It may also be possible to include some solar features when you're renovating, but it's harder.
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