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How to keep warm this winter and save money on heating bills

mother and daughter wrapped in a blanket on the couch
RACV

June 05, 2026

Learn how to keep your home warm this winter while reducing heating costs. Discover energy-saving tips, insulation advice and efficient heating solutions.

As temperatures drop, many households brace for higher energy bills. Heating can account for a significant portion of winter energy use, especially in colder parts of Victoria. But staying comfortable during winter doesn't have to mean running the heater all day.

From improving insulation and blocking draughts to using your heating system more efficiently, there are plenty of ways to keep warm this winter while reducing energy costs. Small changes around the home can make a noticeable difference to both comfort and household spending.

Remember to take care with all types of home heating and ensure your smoke detectors are working. Test them monthly and change the batteries every year.

Ready for winter at home and on the road?


Top tips for saving on heating bills this winter

Set your heater to an efficient temperature

One of the easiest ways to reduce heating costs is to adjust your thermostat.

For most Australian homes, a temperature between 18°C and 20°C during winter is considered comfortable and energy efficient. Every degree above this can significantly increase running costs.

Rather than turning the heater up high for short bursts, maintain a steady temperature and dress appropriately indoors. Wearing warm clothing, slippers and layered garments can help you feel comfortable without overheating the house.

Only heat the rooms you actually use

Heating the entire home can be expensive, especially if some rooms are rarely occupied.

Instead, focus on the areas where people spend the most time, such as living rooms or home offices. Close doors to unused rooms to stop warm air escaping and reduce the area your heating system needs to warm.

If you have ducted heating, consider using zoning features if available. Zoning allows you to heat selected parts of the home rather than every room at once.

Portable heaters can also be useful for targeted heating, but it's important to choose energy-efficient models and use them safely.

father with two young children on bed

Layers of clothing and blankets are key to keeping warm without the heater.

Stop draughts and heat loss

A warm home can quickly become cold if heated air is escaping through gaps and cracks. Common problem areas include:

  • gaps around doors and windows
  • unsealed floorboards
  • chimneys and fireplaces
  • exhaust fans
  • gaps around pipes and vents.

Simple draught-proofing products such as door snakes, adhesive weather seals and gap fillers can help reduce heat loss.

Curtains can also play an important role. Thick or lined curtains help insulate windows and reduce cold air entering the home overnight. Closing curtains as soon as the sun goes down can help retain warmth.

Make the most of natural sunlight

Winter sunshine is free heating. Open curtains and blinds during the day on north-facing windows to allow sunlight to naturally warm your home. Sunlight can help raise indoor temperatures without using additional energy.

Keeping windows clean and moving furniture away from sunny areas can also help maximise natural heat during daylight hours.

Once the sun sets, close curtains to trap warmth inside.

Insulate your home properly

Without adequate insulation, homes can lose a large amount of heat through the roof, walls and floors. Installing or upgrading insulation can reduce the amount of heating needed and improve comfort year-round.

Key areas to consider include:

  • roof and ceiling insulation - heat rises, making ceilings one of the biggest sources of heat loss. Your ceiling insulation should be 50mm thick or more - and note that some ceiling insulation can compact over time, limiting its effectiveness.
  • floor insulation - homes with timber floors or raised foundations can feel especially cold in winter. Insulating beneath floors may help reduce draughts and improve comfort. Rugs and carpets can also help.
  • wall insulation - wall insulation can improve thermal performance, particularly in older homes that may have little or no insulation installed
  • window insulation - look into upgrading your windows to be double-glazed for better insulation.

Although insulation upgrades may involve upfront costs, they can provide long-term savings through reduced heating and cooling expenses.

More: How to insulate a house in a cost effective way

woman and man DIY installing insulation in their home

Make sure your home is adequately insulated to prevent heat loss. Image: Getty

Keep your heating applicance serviced

Just like your car, your heater works better when it’s well-maintained. A poorly performing heater can cost you more while delivering less warmth.

If your heating vents are obstructed by high-pile rugs or covered with couches, the heating system will have to work harder and use more energy to pump out warm air. Keep curtains and furniture clear of the vents so the air is free to flow.

Keeping air filters clean is also important. Dirty filters can greatly reduce the heating efficiency of a reverse-cycle air conditioner; therefore, regular heater maintenance is key to keeping heaters running optimally. If you have a gas heater, get it serviced by a licensed professional every two years.

More: Benefits of a regular heater service

Use your heating system efficiently

Different heating systems have different running costs and energy efficiency levels.

Reverse-cycle air conditioners are generally among the most energy-efficient forms of heating because they transfer heat rather than generate it directly. Modern systems can provide substantial warmth while using less electricity than many portable electric heaters.

To help improve your heating system's efficiency:

  • clean filters regularly
  • service systems according to manufacturer recommendations
  • avoid blocking vents or outlets
  • use timers or programmable settings
  • turn heaters off when leaving the house.

A well-maintained heating system often performs better and costs less to run.

More: The smart home devices that can help you save money

Choose energy-efficient heating appliances

Older heaters can guzzle energy, especially if they haven't been serviced regularly. If your system is more than 10–15 years old, consider upgrading to an energy-efficient model. Newer models with higher energy-efficiency ratings can reduce running costs over time.

Look for modern reverse-cycle air conditioners with high star ratings: they will be efficient for both heating in winter and cooling in summer. Check government rebates and incentives for upgrading to efficient systems – for example, the Victorian Energy Upgrades (VEU) programs offers various discounts for households making the switch.

In fact, switching from gas to electricity can bring significant cost savings to your energy bills, especially when combined with a rooftop solar system.

More: Understanding energy star ratings on appliances

Reduce hot water energy use

Heating water can contribute significantly to winter energy bills. Using less hot water may help reduce both electricity and gas consumption.

To help reduce costs:

  • take shorter showers
  • wash clothes in cold water where possible
  • fix leaking hot water taps
  • insulate exposed hot water pipes
  • set hot water systems to efficient temperatures.

You could also upgrade your hot water system to a more energy-efficient model, such as a heat pump hot water system.

RACV tradie fixing a gas heater

Keep heaters regularly serviced to maximise their efficiency.

Reverse your ceiling fan

Did you know that reversing your ceiling fans can help make a room feel warmer in winter? That's because warm air from your heater rises to the ceiling level. A fan spinning clockwise on reverse or 'winter mode' will push down warm air that's drifted upwards.

Check your remote control for a reverse function button. If it's not there, or if you don't have a remote control, most fans have a switch on the side of their motor labelled forward/reverse or summer/winter. Just flick the switch to change the rotation.

Keep yourself warm, not just the house

Personal warmth can reduce reliance on heating systems. Simple ways to stay warmer include:

  • wearing thermal clothing and layers, with fibres like wool or fleece
  • using blankets and throws
  • drinking warm beverages
  • using hot water bottles or heat packs
  • wearing socks and slippers indoors
  • swapping your bedding for flannelette sheets and a winter quilt
  • exercising to get your blood pumping (make sure to shower or towel off if you sweat: cooling sweat quickly lowers your body temperature).

Electric blankets can also provide efficient overnight warmth when used according to safety instructions.


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