Central Heating Systems

A central home heating system distributes warmth throughout a house from a single source, using ducts, pipes, or radiators. Heat sources include gas, electricity, wood, and reverse-cycle air conditioning, each with distinct running costs and efficiencies.

A central heating system warms an entire home from one main unit. It typically uses:

  • Ducts to circulate warm air (forced-air systems)
  • Pipes and radiators for hot water or steam (hydronic systems)
  • Floor coils or panels for radiant heating

The system is controlled by a thermostat and may include zoning to heat specific areas.


🔥 Types of Heat Sources

Heat Source TypeDescriptionCommon Systems
Gas (Natural or LPG)Burns fuel to heat air or water; efficient and fastGas ducted, gas hydronic
ElectricityPowers resistance heaters or heat pumps; clean but can be costlyElectric ducted, heat pumps
Reverse-Cycle Air ConUses refrigerant to extract heat from outside air (even in winter)Ducted or split-system air con
Pellet BoilerBurns pellet fuel in a hot water boiler; low fuel costs.Pellet hydronic, slow combustion
Solar HeatingUses solar collectors to warm water or air; low running cost, high setupSolar hydronic, hybrid systems

💰 Running Costs (Annual Estimates for 100 m² Area)

These figures are based on a Melbourne climate and a pre-2005 home. Multiply by 1.5 for colder climates like Ballarat or Tasmania:

System TypeEstimated Annual Cost (AUD)
Gas Ducted (3 Star)$2,000–$2,500
Gas Ducted (6 Star)$1,200–$1,600
Gas Hydronic (C Rating)$2,800–$3,200
Gas Hydronic (A Rating)$1,800–$2,200
Reverse-Cycle Air Con$600–$1,000
Electric Resistance$2,500–$3,500
Pellet Combustion~$800–$1,200

Note: Costs vary based on insulation, thermostat settings, and energy tariffs. Reverse-cycle air conditioning is often the cheapest to run but has higher upfront costs (up to $15,000 for ducted systems).


🧠 Smart Tips for Efficiency

  • Upgrade insulation to reduce heat loss
  • Use zoning to heat only occupied areas
  • Maintain systems regularly for peak performance
  • Consider hybrid setups (e.g., solar + heat pump) for long-term savings