Is a wood heater cheaper than reverse-cycle?
By Sithum Imarsha Last reviewed
It depends what your wood costs you. In Victoria, buying 4 tonnes a winter at $475 a tonne costs about $1,900. Reverse-cycle would cost about $898 for the same heat. Free or cheap wood changes this completely.
Your result
Difference over a winter
$1,002
Reverse-cycle is cheaper by $1,002 a winter, for the same heat.
- Wood cost
- $1,900
- Reverse-cycle cost
- $898
- Heater efficiency
- 65%
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How we calculated this
Work out the heat your wood actually delivers
Tonnes burned × energy per kg × your heater's efficiency. The rest of the wood's energy goes up the flue.
11,555.56 kWh of heat
Price the same heat on reverse-cycle
The same heat ÷ the reverse-cycle's COP, at your electricity rate. We compare that with what you paid for your wood, so free wood always wins on cost.
$1,900 wood, $898 reverse-cycle
We ask how much wood you burn, not how big your room is. The room-heat-load method our heater calculator uses would put a wood heater's winter at a fraction of what households really burn, roughly 6 to 10 times less. Your own tonnes are the better number.
| Heater | Efficiency | Checked | Source |
|---|---|---|---|
| Older or minimum-compliant | 60% | Dated third-party source | NSW EPA / Australian Home Heating Association: the AS/NZS 4012:2014 and 4013:2014 compliance floor for any wood heater sold new in Australia |
| Typical | 65% | Estimate | Our mid-point between the 60% compliance floor and modern high-efficiency claims of 70 to 73%, for a typical, not-new heater |
| Modern high-efficiency | 72% | Dated third-party source | Australian Home Heating Association list of certified wood heaters, read on 1 Oct 2026: of 341 certified heaters, 17% rate 70% or more and 9% rate 72% or more (the median is 64%) |
Any wood heater sold new in Australia must reach at least 60% efficiency (AS/NZS 4012:2014). No Australian figure exists for real-world, in-use efficiency (a cold start, a damped-down overnight burn, wet wood) against this lab-tested number. Treat the result as optimistic if your wood is not well-seasoned.
The wood energy content, 16 MJ/kg (Estimate), is the weakest figure here. No Australian eucalyptus-specific value was found, so it is a judgement below the oven-dry value for firewood that allows for seasoned wood's moisture. Green (unseasoned) wood burns worse than this, so your real result would be worse than shown. If you know your wood, change it under Advanced.
Bought by the cubic metre or the trailer load? A rough guide is about 1 to 1.3 m³ per tonne of seasoned hardwood. It is not exact: it changes with the wood type and how tightly it is stacked.
A wood heater warms the room it is in. Reverse-cycle, especially ducted, can heat the whole house evenly. That difference is real, and the dollar figure here does not capture it.
Sources
- NSW EPA: check your heater complies with the standard
- Australian Home Heating Association: certified wood heaters
- Firewood.com.au: firewood collection (Melbourne)
- Australian Firewood: 2-tonne Ironbark pack (Sydney)
- Charcoal Kings: 2026 firewood guide (Perth)
- FAO/Krajnc: Wood Fuels Handbook (2015)
- CHOICE: should you switch from a wood-fired heater? (25 Jul 2023)
- CHOICE: which electric heater type is best
- CHOICE: gas heater buying guide
- CHOICE: the cheapest way to heat your home this winter
- EnergyPlans: heater cost calculator
- Energy Rating: understand the Zoned Energy Rating Label
- Canstar: electricity cost per kWh
- EnergyPlans: solar feed-in tariffs July 2026
- OTTER: Tasmanian feed-in tariffs
- WA legislation: Synergy A1 tariff, charges amendment by-laws 2026 (SL 2026/140)
Questions
Is a wood heater cheaper than reverse-cycle?
Only if your wood is cheap or free. Bought at $475 a tonne in Victoria, 4 tonnes a winter cost $1,900, against $898 on reverse-cycle for the same heat. At $0 a tonne, wood always wins on cost.
What if I get my wood for free?
Then wood is the cheaper option here, by about $898 a winter against reverse-cycle. Count the value of your own time, fuel and equipment if you cut and split it yourself.
Does a wood heater heat the whole house?
No, mostly the room it is in. Reverse-cycle, especially a ducted system, spreads heat through the house more evenly.
Is wood smoke a health concern?
Yes, in some areas. Wood smoke is a major source of fine particle (PM2.5) air pollution in cold-weather cities. Medical Journal of Australia research, reported by ABC News in January 2024, linked it to deaths in the ACT each year. Some councils restrict wood heater use, so check your local rules.
Does green (unseasoned) wood burn as well as seasoned wood?
No. This calculator's energy-content figure assumes reasonably well-seasoned wood. Green wood burns less efficiently and makes more smoke, so your real result will be worse than shown.