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Reverse-cycle air conditioning hundreds of dollars cheaper than gas heating, report says

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Every winter used to bring an agonising choice for the Goodes household in Adelaide’s north — shivering through the cold or switching on the expensive gas heater.

“We were trying to turn it on as late as we could, and trying to shut all the rooms that weren’t getting used,” Racheal Goodes said.

“It ran the gas bill up quite a bit — you were looking at a $300 bill for a month.”

Ms Goodes said she was “absolutely delighted” to have a new reverse-cycle air conditioner, with a seven-star energy rating, installed in her Smithfield Plains living room instead.

“The feet won’t be as cold, and you won’t have to wear the gloves — it’ll be good,” she said.

Ryan Wood is an electrician who has been installing air conditioners for households as part of the Retailer Energy Productivity Scheme (REPS) on behalf of energy retailers.

Ryan Wood says his company installed 2,500 air conditioners last year. (ABC News: Tom Fedorowytsch)

The scheme is aimed at replacing expensive energy systems in low-income households with more efficient products to help lower power costs and reduce greenhouse gas emissions.

“The cost of running the system is really low — we’re talking a quarter of what your toaster or kettle might draw, so sized correctly it’s a really efficient way of heating and cooling a room,” Mr Wood said.

“Last year we installed 2,500 air conditioners — I think they’re doing a good job.”

Staggering cost of running gas heating this winter

A report prepared by non-profit organisation Renew for the South Australian Council of Social Service (SACOSS) examined the costs of heating and cooling Adelaide homes.

It found using gas heating in a typical three-bedroom house would cost as much as $1,444.85 per year, compared with $476.61 to use the heating function of a reverse-cycle air conditioner.

Ross Womersley says governments should expand eligibility for schemes like REPS. (ABC News: Che Chorley)

Spending $2,375 to install a reverse cycle air conditioner would result in annual savings of $968.24, the report found.

“With some modest investments, we can ensure — particularly low-income households — have access to much lower energy bills going forward,” SACOSS executive director Ross Womersley said.

Wholesale gas prices have been capped by the federal government but households are facing higher bills.

Power prices have also gone up significantly since the start of July.

Annual cost of heating a three-bedroom house

Gas heater

$1,444.85

Inefficient portable heater

$980.04

Reverse-cycle air conditioner

$476.61

Reverse-cycle air conditioner and ceiling insulation

$269.87

Source: Renew/SACOSS

Mr Womersley said governments should consider expanding the eligibility for schemes like REPS, and landlords should also think about their ability to help bring down bills.

“It wouldn’t take a lot of money to really improve the lot of your tenants and there are real opportunities for you to enhance the property you are renting,” he said.

A range of concessions are available from state and federal governments to help with energy bills, while experts say reducing the heater thermostat can offer significant savings too.

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