Quick Answer

Melbourne homeowners can typically reduce their winter energy bills by 20–40% through draught sealing, thermostat adjustments, and heating system maintenance — most of which costs under $200 and can be done in a weekend. Heating accounts for 30–40% of the average Victorian household’s energy bill, making it the single biggest opportunity for savings during June, July, and August.

Fitting a draught excluder strip to a leaky door gap
Fitting a draught excluder strip to a leaky door gap — draught sealing is consistently the highest-return first step in a Melbourne winter energy audit, costing under $20 per door and reducing heating load noticeably within hours.

Step 1: Draught-Seal Your Home

Draughts are the most underestimated energy drain in Melbourne homes, particularly in older timber-framed houses in Frankston, Dandenong, and the Mornington Peninsula. A gap the width of a 10-cent coin under your front door is equivalent to leaving a 100mm hole in your wall — your heater is fighting a losing battle.

Common draught sources and how to fix them

Location Fix Cost DIY difficulty
Door bottoms Door seal (brush or rubber flap type) $10–$25 per door Easy
Door frame sides and tops Self-adhesive V-strip or foam tape $5–$15 per door Easy
Window frames Self-adhesive foam or V-strip weatherstrip $5–$20 per window Easy
Cornices and skirting gaps Paintable acrylic sealant $8–$12 per tube Easy
Exhaust fan openings Draft-stop flap kit or cover when not in use $20–$60 Medium
Floorboards (older timber floors) Floor gap filler (Selleys No More Gaps) $12–$18 per tube Easy
Fireplace flue (unused) Flue blocker pillow or damper seal $30–$80 Easy–Medium
Pro tip: The fastest way to find draughts is to walk around your home on a cold windy day holding a stick of incense. Smoke moving sideways indicates a draught. Focus on door frames, window frames, light switches on external walls, and where floors meet walls.

Step 2: Set Your Heater Thermostat Correctly

The most impactful change you can make without spending a cent. Every 1°C above 20°C adds approximately 10% to your heating bill. Most Australians heat to 22–24°C — unnecessarily high for a Melbourne winter.

Recommended thermostat settings (Melbourne winter)

Time Recommended Temperature Reason
Morning (wake time to 9am) 18–20°C Getting dressed and active; lower temperature is comfortable
During the day (home) 19–21°C Normal activity; 21°C is comfortably warm with light clothing
Evening (after 6pm) 19–21°C Reduce to 18°C once under blankets on the couch
Sleeping 16–18°C Cooler temperatures improve sleep quality; use a heated mattress topper instead
Away from home Off or 15°C No heating needed if away for more than 2 hours

Setting a ducted heating thermostat to 19°C instead of 22°C can cut heating costs by up to 30%
Setting a ducted heating thermostat to 19°C instead of 22°C can cut heating costs by up to 30% — the most impactful and immediate winter energy saving available to Melbourne homeowners.

Step 3: Service Your Heating System

An unserviced gas ducted heater or split system working in heat mode can use 20–30% more energy than a well-maintained unit. Annual servicing costs $150–$300 but typically saves more than that over a full winter.

Gas ducted heating service checklist

  • Clean or replace the return air filter — a blocked filter forces the fan to work harder and reduces airflow throughout the house
  • Check the heat exchanger for cracks — a cracked exchanger can allow combustion gases into your living space (carbon monoxide risk)
  • Inspect the flue for blockages and ensure it’s drawing correctly
  • Check all zone dampers open and close properly — stuck dampers heat rooms you’re not using
  • Test the thermostat for accurate temperature sensing

Split system heat mode tips

  • Clean the indoor unit’s return air filter monthly during heavy use — a dirty filter reduces heating output by up to 25%
  • Set to “heat” mode (not “auto”) to prevent unnecessary switching between heating and cooling
  • Use the timer to pre-heat the room 30 minutes before you wake up rather than cranking it up from cold
  • Keep the outdoor unit clear of debris and check that airflow isn’t restricted — clear at least 300mm around the unit
Pro tip: Gas ducted heater filters should be cleaned every 6–8 weeks during winter. The filter is usually located behind a grille in the return air duct or at the unit itself. Rinse under warm water, let it dry fully, and refit. Takes 10 minutes and can noticeably improve heating output.

Step 4: Improve Your Windows and Curtains

Windows are a major source of heat loss in Melbourne homes, particularly in houses with older aluminium-frame single-glazed windows. You don’t need to replace them — the right curtain or blind treatment can recover much of the lost heat at a fraction of the cost of double glazing.

Treatment Heat loss reduction Cost per window Notes
Thick lined curtains (close to wall) Up to 40% $80–$300 Most effective when curtains seal at sides
Roman blind with thermal lining 25–35% $100–$250 Better fit for smaller windows
Cellular/honeycomb blind 30–45% $150–$400 Best blind option for energy efficiency
Secondary glazing film 15–30% $20–$60 DIY Temporary but effective for renters
Bubble wrap on glass (emergency) 10–20% $5–$10 Cheap; reduces light but works

Sealing curtain edges against the wall eliminates the convection loop where cold air falls off the glass and flows under the curtain hem
Sealing curtain edges against the wall eliminates the convection loop where cold air falls off the glass and flows under the curtain hem — proper curtain fitting can double the thermal effectiveness of the same curtain.

Step 5: Hot Water and Appliance Efficiency

Heating water accounts for roughly 20–25% of the average Melbourne household’s energy use. Small changes here compound significantly over a winter.

  • Set your hot water system to 60°C, not 70–80°C. Every 10°C reduction cuts water heating costs by 3–5%.
  • Insulate hot water pipes — foam pipe lagging from Bunnings costs $1.50–$3 per metre and keeps water hotter for longer between draws.
  • Fix dripping hot water taps — a dripping tap can waste 9,000 litres per year and adds to your hot water system’s running cost.
  • Wash clothes in cold water — modern detergents work just as well in cold water. Switching from 40°C washes to cold saves approximately $50–$80 per year.
  • Only run the dishwasher on a full load and use the eco or energy-saver cycle rather than the highest temperature setting.

Step 6: Zone Your Heating

Heating rooms you’re not using is one of the most common and expensive winter mistakes. If your home has ducted zoning or zone valves, use them actively.

  • Close off bedrooms during the day and living areas during the night.
  • Use door draught snakes or draught stoppers to isolate unused rooms even if your system doesn’t have zone dampers.
  • Consider a portable oil column heater for the room you spend the most time in — at 1.5kW, it costs about 40–60 cents per hour to run versus $1.50–$3/hour for running the whole-house ducted system for 1–2 people.

Tips and Gotchas

  1. Fix draughts before upgrading insulation — draught sealing always gives the fastest payback. It’s a waste to add R6.0 insulation while air is pouring under your front door.
  2. Don’t seal your home completely — gas heaters need combustion air. If your heater is located inside the house (common in older Melbourne homes), don’t seal every gap without checking the manufacturer’s ventilation requirements.
  3. Ceiling fans in reverse (winter) mode — many ceiling fans have a reverse switch that pushes warm air pooled at the ceiling back down. Run on the lowest speed. This alone can improve heating distribution by 10–15%.
  4. Rugs on cold floors — timber and tile floors lose significant heat by conduction. A thick rug over a cold slab or timber floor makes a real difference to perceived comfort without any energy cost.
  5. Check your electricity tariff — if you have controlled load or off-peak tariffs, shift any electric hot water or plug-in heating to those periods.
  6. Solar panels in winter — output drops by 30–50% in Melbourne’s winter months due to shorter days and lower sun angle. Don’t rely on solar to cover peak evening heating demand.
  7. Reverse-cycle (heat pump) is the most efficient — if you’re choosing between electric resistance and reverse-cycle heating, reverse-cycle uses 3–4x less electricity for the same heat output. A 3-star split system in heat mode still beats a fan heater.
  8. Open blinds during the day, close at dusk — solar gain through north-facing windows in Melbourne winter can contribute meaningful heat. Close blinds at sunset to retain it.

Testing a gas ducted heater's flue connections with a carbon monoxide detector
Testing a gas ducted heater’s flue connections with a carbon monoxide detector — an annual service before winter catches small issues before they become expensive or dangerous, and restores heating efficiency that drops noticeably after a year of heavy use.

Switching a ceiling fan to reverse (winter) mode
Switching a ceiling fan to reverse (winter) mode — running at minimum speed in clockwise direction pushes warm air that has pooled at the ceiling back down into the living zone, improving heating distribution without any additional energy cost.

Local Melbourne Resources

Frequently Asked Questions

What’s the single most effective way to reduce winter energy bills in Melbourne?

Draught sealing — specifically doors and windows — gives the fastest payback at the lowest cost. For most Melbourne homes, a full draught sealing job costs $50–$200 in materials and can reduce heating bills by 10–20%. Combine it with setting your thermostat 2–3°C lower, and you’ll see a meaningful difference on your first winter bill.

What temperature should I set my heater to in winter in Melbourne?

19–21°C is the recommended range for comfortable living spaces in a Melbourne winter. Every degree above 20°C adds roughly 10% to your heating costs. Sleeping areas can comfortably be at 16–18°C. Use a programmable thermostat or timer to avoid heating an empty house during the day.

Is gas heating or electric heating cheaper in Melbourne in 2026?

Reverse-cycle electric (heat pump/split system) is generally cheaper to run than gas ducted heating for most Melbourne households in 2026, due to rising gas prices and improving electricity tariffs, especially with solar. Gas is still cheaper in some cases for large homes where running the ducted system provides whole-house comfort. Compare your current rates per kWh of delivered heat to determine which is cheaper for your specific home.

Can I draught-seal my home if I have a gas heater?

Yes — but check your heater type first. Room-sealed (flued) heaters draw combustion air from outside and exhaust outside, so they don’t need indoor air for combustion. Open-flued heaters draw air from the room — if you seal these rooms very tightly, you risk combustion issues. Your gas heater’s manual or a licensed gas fitter can confirm which type you have.

Does ceiling insulation help reduce winter heating bills?

Yes — ceiling insulation is the most effective single insulation upgrade, responsible for reducing 25–35% of a home’s heating load. If your Melbourne home has no ceiling insulation or insulation below R4.0, upgrading to R5.0 will have a very noticeable impact on winter comfort and bills. Victorian Energy Upgrades rebates can subsidise a significant portion of the installation cost.