Heat Pumps: Your Answer to Rising Gas Prices

It’s all over the news, and through your letterbox: by now, you’ve likely noticed that gas prices are set to undergo huge increases over the next 12 months. Recent Victorian news reports have even pitted the average Victorian family to be paying an average $500 more each year in the not-too-distant future.

So – how can you best fortify you and your home against rising costs? And what if you made the choice to instead redirect that ~$500 towards some incredible new technology that would save you more money in the long run? With additional government incentives available, new technology has never been a more cost-effective solution to big bills!

In this article, we’ll take a look at one of the most exciting, efficient and cost-effective solutions: the heat pump. We’ll discover how these feats of contemporary technology can help you:

• Reduce your monthly bills
• Increase the energy-efficiency of your home, and even
• Make you money from your contributions to the grid

If you’re ready to explore the ways in which you can start saving money today by swapping-out old technology with new, give our friendly, award-winning team a call on 1300 137 567 for your obligation-free consultation.

But first:

What kind of gas is used in home settings?

There are two types of gas made available to Australian home-owners, depending on where they live: reticulated natural gas and liquified petroleum gas (LPG).

Still, it’s “natural gas” (methane) that’s the most frequently used and connected type in homes across the country. Natural gas is generally delivered via pipelines whilst LPG and CNG are deliv[ered in cylinders or tanks.

It follows that, due to its proximity to Bass Strait (an historically well-appointed supply of natural gas), Victoria is one of the most frequent users of natural gas in the country.

What uses gas in the home?

In Australian homes, gas is mostly used for HVAC, heating and cooling spaces within the home, the provision of hot water and cooking.

In Australia alone, it’s suspected that there are currently over 12 million gas network-connected appliances and over an estimated 6 million additional bottle gas appliances in use in homes.

Gas has long been considered essential in our homes and to our contemporary way-of-life. But with ever-increasing gas prices and the impending challenges of climate change, is it really that necessary?

What causes rising gas prices?

A number of factors cause gas prices to rise, including:

• Global oil prices
• Supply and demand
• The cost of refining crude oil
• Transportation costs
• The fluctuation of currencies
• Government taxes

Let’s take a closer look at each.

1. Global oil prices

The price of oil is a major factor in determining the cost of gasoline. When the price of crude oil rises, the cost of gasoline typically follows. Across the world, the price of crude oil and gas is currently in flux due to a wide range of factors, including the war in Ukraine.

2. Supply and demand

When demand for gasoline increases, the price tends to rise. This can happen during peak driving seasons or in areas with growing populations. As citizens of the world begin to drive and transport themselves regularly post-COVID-19 lockdown, demand for petroleum and crude oil has, once again, risen.

3. Refining costs

The cost of refining crude oil into gasoline can also affect the price of gasoline. Refining costs can rise due to factors such as increased regulations or higher costs for raw materials. These regulations tend to fluctuate in accordance with other key factors, such as supply and demand.

4. Transportation costs

The cost of transporting gasoline from refineries to service stations can also impact the price of gasoline. We can see here how the cost of crude oil and crude oil products can become “stuck” in a cycle due to not only supply and demand, but the cost of transporting products that are already subject to dynamic pricing and valuation.

5. Currency fluctuations

The value of the Australian dollar compared to other currencies can also impact the cost of gasoline. Crude oil is usually priced in US dollars.

6. Government taxes

Finally, particular taxes imposed by the Australian government and its constituencies, such as fuel excises, can also play a role in determining the price of gas and its associated products and services.

What can I do to save money on my gas bills?

With over 15 years of expertise in helping Victorians reduce their gas bills, we understand just how much strain – financial, emotional and otherwise – rising costs can put on households.

Luckily, you’ve got lots of options when it comes to reducing your monthly electricity and gas bills. Here are our top suggestions:

• Energy efficiency: Make your home more energy efficient by sealing air leaks, adding insulation, and upgrading to energy-efficient appliances.
• Swap-in more energy-efficient appliances and systems: Incredible products like heat pumps (read more below) can help you save huge amounts on your monthly bills.
• Install solar: Solar systems can help power your entire home, even earning you money from your contributions to the grid!
• Reduce usage: Reduce your usage of gas-powered appliances and systems, such as turning down the thermostat in the winter or using a clothesline instead of a dryer.
• Shop around: Compare gas prices from different providers to find the best deal. Some providers offer discounts for paying bills on time or signing up for automatic billing.
• Consider alternative heating sources: Consider installing a more efficient heating system, such as a heat pump or a pellet stove, or switch to electric heating.
• Monitor your usage: Keep track of your gas usage by regularly checking your bills and meter readings. This can help you identify areas where you can reduce your consumption and lower your bills.

How are heat pumps an effective solution to rising gas prices?

Put super simply, heat pumps are an effective solution to rising gas prices because they use electricity (rather than gas) to heat a home.

But how do they work?

A heat pump is a device that can heat a building, water source/storage unit or otherwise by transferring thermal energy from the outside, ambient air into a space or body of water that needs heating or cooling.

Air source heat pumps work by:

• Either extracting heat from the cold, outside air, then using a compressor within the device to increase the temperature of the extracted heat using electricity, or
• Extracting warm air from the inside of a home, then pumping this air to the external boundary of the building

That’s the simplified version. You can read more about the best-available heat pumps in this article found within our Learning Centre.

Overall, heat pumps also offer several advantages over traditional heating systems:

• Lower energy bills: Because heat pumps use less energy, they can reduce homeowners’ energy bills compared to gas-fired heating systems.
• Longer lifespan: Heat pumps have a longer lifespan compared to traditional heating systems, as they have fewer moving parts and are less likely to break down.
• Increased home value: Installing a heat pump can also increase a home’s value, as it is a desirable and energy-efficient feature that can appeal to potential buyers.

What more can I do?

Pair your heat pump with a stunning SunPower solar system supplied and installed by G Store and you won’t only be saving money, but likely making it as well!

Paired with a range of government incentives for solar, plus exclusive membership to Simply Energy’s incredible Virtual Power Plant (VPP), our customers are reeling in the benefits from opting for more efficient homes in 2023.

Wrapping Up

Are you ready to find a heat pump that’s best-suited to your specific interests and needs?

Check out our Learning Centre for further info, or give our friendly sales team a call today on 1300 137 567 for your obligation-free consultation.

We can’t wait to meet you.