Why the brand on the box never matters
A fan heater, an oil column and a panel heater are all resistive heaters: every watt of electricity they draw comes out as heat. That means a $35 fan heater and a $220 designer panel heater of the same wattage cost exactly the same to run, hour for hour. What changes the bill is the heater's wattage, how many hours it runs, and how big a space it's trying to warm. A pricier resistive heater can buy better build quality, extra safety features or a nicer finish, but not a cheaper power bill.
What this costs, state by state
A 2.0 kW fan heater and a 2.4 kW oil column against a 700 W reverse cycle split doing the same job, each running 5 hours a night.
| State | Rate | Fan heater (2.0 kW) | Oil column (2.4 kW) | Reverse cycle (0.7 kW) |
|---|---|---|---|---|
| New South Wales | 32.4¢ | $3.24 | $3.89 | $1.13 |
| Victoria | 29.8¢ | $2.98 | $3.58 | $1.04 |
| Queensland | 31.2¢ | $3.12 | $3.74 | $1.09 |
| South Australia | 38.1¢ | $3.81 | $4.57 | $1.33 |
| Western Australia | 33.6¢ | $3.36 | $4.03 | $1.18 |
| Tasmania | 28.9¢ | $2.89 | $3.47 | $1.01 |
| Australian Capital Territory | 27.4¢ | $2.74 | $3.29 | 96¢ |
| Northern Territory | 31.7¢ | $3.17 | $3.80 | $1.11 |
Reference rates for 2026–27. Your row is highlighted once you set your location.
The one heater type that breaks the rule
Reverse cycle air conditioning is the exception, because it moves heat from the air outside into the room rather than generating it from scratch. That lets a 700 W reverse cycle unit put out as much warmth as a 2,000-2,400 W resistive heater, which is why it costs roughly a third as much to run for the same result (see our heater running cost calculator to check the exact figure for your own state and hours). If a room already has a split system, that's the cheapest way to heat it. If it doesn't, a plug-in heater sized correctly for the room, run for fewer hours rather than left on all evening, is the next best lever.
None of this changes if the heater has a thermostat, a timer or an "eco" mode printed on the box. Those features control how many hours the element is actually drawing power, which matters, but they don't change the cost of the watts it draws while it's on.
Common questions
What's the cheapest type of electric heater to run?
At the same wattage, a fan heater, oil column, panel heater and radiant bar all cost exactly the same to run, because each one turns 100% of the electricity it draws into heat. Reverse cycle air conditioning is the only real exception: it moves heat instead of generating it, so it makes the same warmth for about a third of the electricity of any plug-in heater.
Does a lower-wattage heater always cost less overall?
Only if it's still doing the job. A 1,600 W radiant bar that's undersized for a large lounge room will run flat out for hours and still lose the comfort race to a correctly-sized 2,400 W oil column that reaches temperature and then cycles down. Match the wattage to the room first, then pick the cheapest option among heaters that size.
Is gas heating cheaper to run than an electric heater?
Not against reverse cycle, no, though it typically beats a resistive electric heater like a fan or oil column. See our companion guide on gas vs reverse cycle heating costs for the full state-by-state comparison, including whole-home ducted gas.
Sources
Electricity rates: AER Default Market Offer and each state's regulated reference tariff, current for 2026–27. Appliance draw: the energyrating.gov.au registration database (July 2026 snapshot). Cooling behaviour and setpoint advice: energy.gov.au, Summer energy savings.