Mount Barker households are facing the highest estimated reverse-cycle heating costs in Australia, with new national modelling suggesting it could cost more than $770 to keep a home warm across winter.
The research, conducted by Alliance Climate Control, modelled heating demand across Australian local government areas using NatHERS heating load data, before converting that demand into energy use, applying local electricity prices, and comparing costs against median household income.
According to the study, Mount Barker ranked first in Australia for the highest estimated reverse-cycle heating costs, with households facing an average daily winter heating cost of $5.04. Over the full winter period of May to September, that adds up to $771.12.
Murray Bridge also ranked in the national top three, coming in third behind Muswellbrook in New South Wales. The study estimated Murray Bridge households would spend around $4.69 a day, or $718.29 across the winter season, to heat a home using reverse-cycle air conditioning.
The figures put South Australia firmly in the national spotlight, with two of the three most expensive LGAs for reverse-cycle winter heating located in the state. Alliance Climate Control attributed the results to a combination of colder climates, older housing stock and higher heating demand.
The Most Expensive LGAs for Reverse-Cycle Heating
RankLGA nameWinter daily heating cost – reverse cycle ($)Winter total heating cost – reverse cycle ($)1Mount Barker, SA$5.04$771.122Muswellbrook, NSW$4.86$743.633Murray Bridge, SA$4.69$718.294Upper Lachlan, NSW$4.43$678.455Cabonne, NSW$4.43$677.91
Total cost covers May–September (153 days). Based on the electricity usage rate for each LGA’s assigned distributor zone. Electricity and gas tariffs reflect Standing Offer and Basic Plan rates effective 1 July 2025, sourced from Energy Made Easy and WATTever in May 2026. Upcoming tariff changes are not reflected in these figures. Supply charges excluded. See full methodology for heating energy demand calculation and distributor zone assignment.
The study also looked at heating affordability, comparing estimated winter heating costs with median equivalised household income. On that measure, Murray Bridge was named the least affordable LGA in Australia for winter heating, with the estimated $718.29 seasonal cost representing around 1.55 per cent of annual household income.
Peterborough ranked second nationally for affordability pressure. While its estimated winter heating cost was lower, at $434.84, the area’s lower median household income meant heating accounted for 1.37 per cent of annual income.
Mount Barker also appeared in the affordability top ten, ranking eighth nationally. Despite recording a higher median household income than other areas on the list, its high winter heating costs meant households were still among the most affected in the country.
The Least Affordable LGAs for Winter Heating
RankLGA nameWinter total heating cost – reverse cycle ($)Median equiv. household income($)Affordability (% of annual income)1Murray Bridge, SA$718.29$46,3841.55%2Peterborough, SA$434.84$31,7201.37%3Central Goldfields, VIC$501.03$39,4161.27%4Glen Innes Severn, NSW$492.96$40,8721.21%5Berrigan, NSW$580.83$48,4121.20%6Hilltops, NSW$588.47$49,6081.19%7Cowra, NSW$555.99$47,1121.18%8Mount Barker, SA$771.12$67,7041.14%9Muswellbrook, NSW$743.63$65,7281.13%10Upper Lachlan, NSW$678.45$60,2161.13%
Affordability = estimated winter reverse-cycle heating cost as a percentage of median equivalised household income, adjusted to March 2026 using ABS CPI All Groups Australia. Income data sourced from the 2021 ABS Census, adjusted by a factor of 1.233 (+23.3%) to March 2026. Electricity and gas tariffs reflect Standing Offer and Basic Plan rates effective 1 July 2025, sourced from Energy Made Easy and WATTever in May 2026. Upcoming tariff changes are not reflected in these figures. Supply charges excluded. See full methodology for income adjustment and affordability index construction.
Across South Australia, the study estimated that winter heating costs represent 0.58 per cent of annual household income on average, placing the state first nationally for heating affordability burden.
The research also highlighted the impact of heating choice. Across SA, Alliance Climate Control estimated that keeping a home warm with a reverse-cycle air conditioner would cost around $307 over winter, compared with more than $1,170 for portable or panel heaters.
Energy.gov.au notes that reverse-cycle air conditioners can be highly efficient because they transfer heat rather than generate it directly, with systems on the Australian market ranging between 300 and 600 per cent efficient.
The study’s figures are based on electricity usage rates for each LGA’s assigned distributor zone, with tariffs reflecting Standing Offer and Basic Plan rates effective 1 July 2025. Supply charges and upcoming tariff changes were not included.
See the full research here.
Study conduced by Alliance Climate Control.
