Determining whether gas or electricity is cheaper depends on your lifestyle, appliance usage, and location. Here’s a breakdown of key factors to help you make an informed decision:

Comparing Costs

Gas has lower usage and supply charges compared to electricity, potentially making it more cost-effective for some appliances. In NSW, the approximate rates are as follows:

  • Electricity: 30 cents per kWh
  • Gas: 4 cents per MJ

Although it requires about 3.6MJ of gas to generate 1kWh of electricity at peak efficiency, making gas seem more cost-effective, the practical reality is somewhat different:

  • Electricity: 30 cents per kWh
  • Equivalent gas cost (3.6 MJ): 14.4 cents

Thus, electricity is roughly twice the cost of gas. However, other considerations come into play, such as the expenses associated with setting up a gas connection, which can range from $1,200 to $5,000 and is not available in all homes.

Appliance Considerations:

  • Gas appliances, like stovetops, ovens, and heaters, can have lower energy usage costs but might have higher upfront prices.
  • Electric appliances, such as heat-pump water heaters and clothes dryers, can be more energy-efficient despite higher upfront costs.
  • Efficiency ratings of appliances impact power usage, affecting energy bills. Regular maintenance and adjustments can contribute to cost savings.

Environmental Considerations:

  • Gas is a fossil fuel, but burning gas for electricity generally produces lower emissions than coal-fired power.
  • Green renewables like wind, hydro, and solar offer more environmentally friendly alternatives to both gas and coal.

Overall, the choice between gas and electricity depends on your specific circumstances, preferences, and the appliances you use. Consider upfront costs, running expenses, and environmental factors to make an informed decision that aligns with your needs.

Give us a call on 1300 674 797 to speak to a professional about whether gas or electricity is better for your household.

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