The cost of gas heating in a typical three-bedroom home costs up to $1,444.85 per year, compared to $476.61 to use the heating function of a reverse-cycle air conditioner.
New research has found that investing $2,375 to install a reverse cycle air conditioner would result in annual savings of $968.24.
The figures are included in a report prepared by non-profit organisation the South Australian Council of Social Service (SACOSS).
The report examined the cost of heating and cooling Adelaide homes at a time when energy costs across Australia continue to rise.
Although wholesale gas prices were capped by the federal government last December households and business users are still struggling.
The federal government's $12 a gigajoule price cap on wholesale gas prices was supposed to deliver cost certainty for gas users and was supported by the introduction of a mandatory Gas Code of Conduct.
At the same time electricity prices have increased significantly since 1 July, 2023.
Prices increased between 19.6 per cent and 23.9 per cent in New South Wales, South Australia and south-east Queensland, affecting more than 600,000 customers.
Victoria's Essential Service Commission lifted power prices by 25 per cent. This is equivalent to a $352 increase for residential customers, and a $752 rise for small business customers.
National employer organisation, the Australian Industry Group (Ai Group), who represents industrial users of natural gas, supported the introduction of the mandatory Gas Code of Conduct.
“At this point we can simply say that we are hopeful that the Gas Code of Conduct will be effective in moderating price outcomes over the next two years without undermining supply,” the organisation said in its Gas Code of Conduct submission.
“The proper arrangements beyond 2025 are much less clear. We are not attracted to emergency price controls that outlast the emergency. By contrast a more orderly restructuring of the domestic gas market to reduce its exposure to international volatility could be appropriate.
“As it is too early to tell how the system will play out, we strongly support a review of the Code by mid 2025, or earlier if there is a dramatic change in circumstances or obvious failure to achieve price and supply objectives.”