Cheaper Gas or Electricity? A Clear Cost Comparison for Australian Homes
Trying to figure out if gas or electricity is cheaper for your home? You’re not alone. With energy bills rising across Australia, more households are starting to question which option actually costs less—and which one makes more sense long term.
In this guide, we’ll break down what you really pay for gas and electricity in major cities, what appliances cost to run, and how to decide what suits your home best. If you’re weighing up cheaper gas or electricity, here’s what matters most.
Gas vs. Electricity Energy Costs Breakdown
Before deciding which is cheaper—gas or electricity,, it helps to understand how costs are calculated—and how much typical homes are paying across major Australian cities.
How Energy Is Measured and Billed
Electricity is billed by the kilowatt-hour (kWh). Gas is billed by the megajoule (MJ). One kWh is equal to about 3.6 MJ. So if electricity is 30 cents per kWh, and gas is 5 cents per MJ, those numbers aren’t directly comparable—until you convert.
You’ll also notice daily supply charges on both bills. That’s a fixed fee just to stay connected to the network, and it can add up over time.
Average Electricity Usage Costs Across Major Cities
Electricity prices vary a lot depending on your provider, plan, and where you live. Here's a rough average based on 2024 data from energy regulators and government price guides:
City | Average Usage Rate (c/kWh) | Daily Supply Charge (c/day) |
Sydney | 30–36 | 90–110 |
Melbourne | 26–32 | 100–120 |
Brisbane | 28–35 | 95–115 |
Adelaide | 32–38 | 110–130 |
Perth | 29–33 (regulated) | ~105 |
If you’re a household using 15–20 kWh/day, your monthly usage cost can land between $150 and $250 depending on your state.
Keep in mind: prices have fluctuated sharply in recent years. Between 2022 and 2023, average electricity bills rose over 20% in some regions (ABC News, June 2023).
That said, many homes are offsetting these costs with solar or off-peak rates. More on that later.
Average Gas Usage Costs Across Major Cities
Gas pricing is also location-dependent. Here’s a look at residential gas costs from 2024 data:
City | Usage Rate (c/MJ) | Daily Supply Charge (c/day) |
Sydney | 3.5–5.5 | 60–85 |
Melbourne | 2.8–4.5 | 70–95 |
Brisbane | 3.9–5.8 | 65–90 |
Adelaide | 4.2–6.0 | 85–100 |
Perth | 3.0–4.0 (regulated) | ~65 |
For a home using 25–35 MJ/day, monthly gas usage might range from $80 to $140, plus supply charges.
Gas is usually cheaper per unit than electricity. But here's the catch—many gas appliances are less efficient. And if you’re only using gas for one or two things, that daily connection fee can feel steep.
Gas and Electricity Running Costs of Common Appliances
When comparing cheaper gas or electricity, it's not just about your bill per unit. The type of appliance you’re using—and how often you use it—can have a much bigger impact.
Let’s look at how common household appliances stack up when it comes to energy use and overall running costs.
Heating and Cooling Systems
Heating and cooling is usually the biggest part of your energy bill, especially during winter or summer peaks.
Electric reverse cycle air conditioners are among the most energy-efficient systems available in Australia. They cool and heat using a single unit, and newer models can cost as little as 30–50 cents per hour to run.
Gas ducted heaters, while powerful, can cost $1.50–$2.00 per hour, particularly in older homes or larger spaces without zoning.
Electric panel heaters also exist, but they tend to be less efficient than reverse cycle units. They're okay for short bursts, but not ideal for long periods.
System Type | Estimated Running Cost per Hour |
Electric reverse cycle AC | $0.30 – $0.50 |
Gas ducted heating | $1.50 – $2.00 |
Electric panel heater | $0.50 – $0.80 |
In places like Queensland or WA, where heating isn’t needed much, a reverse cycle unit can save you hundreds each year compared to gas.
Cooking Appliances
If you love cooking, this one’s worth considering—though the cost difference isn’t massive for most homes.
Gas cooktops are fast and responsive. You’ll pay about 2–3 cents per MJ, which works out to 30–50 cents per hour of use.
Induction cooktops are a top electric option—safe, precise, and much more efficient than older coil or ceramic electric stoves. They often cost around 20–30 cents per hour, depending on your electricity rate.
In short: gas and induction are fairly close when it comes to running cost. If you already have gas, there’s no strong reason to switch. But if you’re starting fresh or aiming for an all-electric home, induction makes a solid case.
Hot Water Systems
Hot water is one of the biggest day-to-day energy costs for Australian households. What you choose here makes a real difference.
Gas storage systems keep water hot constantly. That means even when you’re not using hot water, they’re still burning gas.
Electric heat pump systems pull warmth from the air to heat your water. They use far less energy—sometimes 70% less than standard electric or gas units.
Here’s how it plays out in running costs for a household of four:
Hot Water Type | Estimated Annual Cost |
Gas storage system | $700 – $900 |
Electric resistance (older) | $1,000+ |
Electric heat pump | $300 – $600 |
While a heat pump may cost more upfront, you can often claim rebates (especially in VIC, SA, and NSW), and the payback period can be as short as 3 years.
If you already have a solar generator, pairing it with a heat pump water heater makes even more financial sense—cutting ongoing bills to a minimum.
Electricity Vs Gas: Pros and Cons
Still not sure which direction to go? Comparing the benefits and trade-offs of each energy type can help clear things up.
Here’s a practical look at how each source stacks up:
Electricity: ✅ Works with solar ✅ Better appliance efficiency ✅ One bill, one system ⚠️ High per-unit cost ⚠️ Affected by market volatility
Gas: ✅ Lower per-MJ cost ✅ Instant heat for cooking ✅ Often faster for heating water ⚠️ Supply fees can add up ⚠️ Fossil fuel – not future-proof ⚠️ New connections are expensive
The big shift in recent years is that electricity is becoming cleaner and more efficient—especially with solar uptake growing across Australia. According to Wikipedia citing CER data, by September 2024, Australia had over 3.9 million rooftop solar PV installations with a total capacity of 37.8 GW.
Gas is still cheaper per unit, but when you factor in appliance efficiency and flexibility, it makes sense why so many homeowners are now comparing cheaper gas or electric setups before upgrading.
How to Choose the Right Choice for Your Home
There’s no one-size-fits-all answer, it depends on how your home is set up—and what you plan to do in the next 5–10 years.
Here’s what to consider:
Stay on gas if:
Your home already has efficient gas systems
You use gas for multiple needs (heating, cooking, hot water)
You don’t plan to invest in solar anytime soon
Go electric if:
You want to add solar or a battery
Your gas appliances are aging or inefficient
You want to simplify your bills
You live in an area with low off-peak rates
At EcoFlow, we often help customers reduce grid reliance with portable power stations, backup batteries, or full home solutions. For homes already on the edge of switching, adding a solar-ready setup can tip the scales.
A powerful all-in-one option is the EcoFlow DELTA Pro 3 Portable Power Station. This unit delivers serious performance—4,000W output at 230V, enough to power most home appliances including air conditioning, fridges, and induction cooktops. It offers a flexible 4–12kWh capacity (333Ah\@12V), charges to 80% in just 50 minutes, and runs quietly at 30 dB under 2,000W. You also get 6 unique and 18 combo charging methods, plus a plug-and-play setup that’s easy for anyone to use. It’s a strong pick for those looking to cut energy bills while staying fully powered.
EcoFlow DELTA Pro 3 Portable Power Station
Conclusion
So, is gas or electricity cheaper? The short answer: it depends on what you're using, where you live, and how efficient your systems are.
Gas still comes out cheaper per unit, but electric appliances—especially modern ones—tend to run more efficiently. And if you’re thinking ahead, electricity gives you the flexibility to go solar, store energy, and reduce your bills even further.
At the end of the day, the best choice is the one that matches your usage patterns, budget, and home goals in a sustainable way.
FAQs
Is it cheaper to use gas or electricity?
Gas usually has a lower per-unit cost than electricity, but that doesn’t always mean it’s cheaper overall. It depends on the appliance. For example, gas heaters can be expensive to run in winter, while electric reverse-cycle systems are highly efficient. Hot water heat pumps use much less electricity than gas systems use in MJ. So while gas might look cheaper on paper, modern electric setups—especially when paired with solar—often win out in real-world usage.
Are gas prices cheaper than electricity?
Yes, gas prices per MJ are generally lower than electricity per kWh. But the catch is in efficiency. Gas appliances often use more energy to do the same job, and you still pay a daily gas supply charge. If you only use gas for cooking, that daily fee can cancel out any savings. On top of that, electricity prices can be offset by solar generation or time-of-use plans. So gas is cheaper per unit, but not always cheaper overall.
What is cheaper to run: gas or electric heaters?
Electric split systems (reverse cycle air conditioners) are generally cheaper to run than gas heaters, especially in moderate climates. They use less energy to produce the same amount of heat. Gas ducted systems can burn through a lot of MJ each day, which adds up. While gas heaters warm a space quickly, electric systems offer zoned heating and often lower seasonal costs—particularly if you have solar or can access off-peak rates. For most homes, electric heating is now the more cost-effective choice.