Are Electric Fireplaces Expensive to Run? Everything Australian Homes Need to Know

You've seen it in a magazine spread, a friend's living room, or scrolling through your phone at midnight: a beautiful electric fireplace, flames dancing against a clean white or charcoal wall, the room completely transformed. 

And then the question quietly follows you: But is it expensive to run? 

It's the right thing to wonder. Energy bills are a very real part of Australian home life, and nobody wants a beautiful new feature that quietly punishes them every quarter. The good news is that electric fireplaces can be more economical to run than many people expect.

The even better news? There's a mode that costs very little to operate.

This guide gives you the honest numbers, the smart strategies, and the design inspiration to make the decision that's right for your home and your lifestyle.

Key Takeaways 

What It Actually Costs to Run an Electric Fireplace in Australia 

Let's start with the number that matters most. 

At an illustrative electricity rate of 32 cents per kilowatt-hour, in line with typical Australian residential prices in 2026, a standard 1,500W electric fireplace costs around 48 cents per hour on full heat. The Australian Energy Regulator publishes regional reference prices rather than one national rate, so check your own bill (how we calculated these figures).

That's it. Less than a cup of takeaway coffee for an hour of genuine warmth and ambience.

For context, most households run their fireplace for three to five hours on a winter's evening. At four hours a night, you're looking at about $1.92 a day, or $57.60 over 30 evenings if you use it every evening with the element running continuously. A thermostat can cycle the element off, so real bills may be lower. For many Australian households, that can be a cost-effective way to heat a single living space.

A note on electricity rates: Rates vary across Australia and between plans. South Australian households typically pay more per kWh than most other states, and some pay around 40 cents or more. Rates in other states, such as Queensland, can sit closer to 30 cents or below. The table below uses 32c/kWh as an illustrative mid-range figure. Swap in the rate on your bill, or use the tariff scenarios in the 'How we calculated these figures' section above.

The Running Cost Breakdown: By Hour, Day, and Month 

Here is what it costs to run an electric fireplace across common modes and settings, using the formula and assumptions in the 'How we calculated these figures' section above: an illustrative 32c/kWh, four hours of use per day and 30 days per month.

Assumes the stated wattage is drawn continuously for 4 hours a day over 30 days at 32c/kWh. Excludes supply charges. Rates vary by state and plan.

The most important thing to notice here is that the medium setting (1,000W) is often all you need for a well-sized living room. In a sealed, reasonably insulated space, you can reach a comfortable temperature quickly, at which point the built-in thermostat cycles the element off automatically. The actual average draw over an evening can be lower than the stated wattage, so treat the table as an upper-end estimate.

The Flame-Only Mode: The Secret That Changes Everything 

This is the detail that surprises people most. And it might be the most liberating thing about owning a modern electric fireplace. 

Many quality electric fireplaces have a flame-effect mode that operates independently of the heating element. The LED display runs, the flames flicker and dance, and the room is transformed, but no heat is being generated.

The power draw in this mode varies by model, from as little as one to five watts on many units, so check your manual. At 5W and 32 cents per kWh, that is under one cent per hour. Run it for four hours every evening for 30 days and you've spent about 19 cents on electricity.

This changes the value equation. Your electric fireplace isn't only a winter appliance. It's a year-round design feature: one that creates atmosphere on a mild autumn evening, adds warmth to a spring dinner party, and brings a flickering focal point to a summer space where the air conditioning is doing the actual cooling.

Think of it this way: you're not just buying a heater. You're buying a living, breathing design statement that happens to also heat your room when you need it to. 

How Electric Fireplaces Fit Every Australian Aesthetic 

The running cost question is practical. But underneath it lives a design question: will it actually look right in my home? 

The answer, almost always, is yes, because the modern electric fireplace range has diversified far beyond the single-style box of a decade ago. Today's options span a range of formats, finishes, and flame styles that integrate beautifully across every Australian interior aesthetic. 

The Modern Minimalist Home 

Clean lines. A white or charcoal wall. A fireplace that sits flush and makes the wall feel curated rather than furnished. 

Wall-mounted electric fireplaces in matte black or brushed steel are the natural choice here. Slim-profile designs disappear into the wall when off and become the room's centrepiece the moment the flames appear. Pair with concrete-look flooring, a single statement sofa, and pendant lighting for a space that feels like it belongs in an architectural digest. 

The Scandi-Inspired Space 

Warm timber tones, soft greys, tactile textures such as wool, linen and sheepskin. The Scandinavian-influenced Australian interior is built around the concept of hygge: the Danish philosophy of cosiness and togetherness. 

An electric fireplace is the missing piece. A wider landscape-format model in a natural or white frame, positioned low on the wall and surrounded by textured cushions and a chunky knit throw, completes the picture. Add a timber coffee table and a low-hanging pendant, and the room becomes the kind of space you never want to leave. 

The Contemporary Dark Luxe Interior 

Charcoal feature walls. Velvet. Brass accents. Deep, moody tones that make a room feel dramatic and intimate all at once. 

This is where a recessed electric fireplace with a wide-format, borderless design truly shines. Set into a dark wall with no visible frame, the flames appear to float. Switch the flame colour to deep blue for a cinematic, modern edge, or classic amber when the mood calls for warmth. The result is something that looks impossibly expensive and intentional. 

The Coastal Australian Home 

Whitewashed timbers. Natural rattan. Linen. The palette of sand, salt, and bleached driftwood that defines so much of the Australian coastal interior aesthetic. 

Here, a white-framed or brushed steel electric fireplace brings warmth without visual weight. The key is proportion: a fireplace that's wide enough to hold its own against a generous coastal sofa arrangement, without dominating the room's airy, open feel. White flames or soft amber tones complement the palette beautifully. 

The Renter's Interior 

Not everyone can renovate. Renters, apartment dwellers, and anyone in a temporary home have historically been locked out of the fireplace dream entirely. 

Electric fireplaces change that. Many freestanding fireplace consoles need little more than a power point: no drilling and no hardwiring. Check your lease before installing anything. They move with you. They look every bit as considered as a built-in, and they cost a fraction of what a built-in would require. 

Zone Heating: The Smartest Way to Use an Electric Fireplace 

The question isn't just how much an electric fireplace costs to run. It's how much it costs compared to what you're currently doing.

In our scenario, a ducted gas system heating the whole home costs $2 to $4 per hour, because it heats every room at once: the bedrooms nobody is in, the bathrooms, the hallway and the spare room. Run it for four hours on a winter evening and that is $8 to $16.

In the same scenario, an electric fireplace heating the one room where the family gathers costs $0.48 to $0.64 per hour (1,500W to 2,000W at 32c/kWh), or $1.92 to $2.56 over the same four hours. That is roughly 68% to 88% less per evening than the ducted gas figures.

This is the zone heating principle: heat the space where you're living, not the whole house. These figures are a scenario, not a prediction. They assume the ducted system stays off, the rest of the home is not heated and the fireplace can comfortably warm your room. Your result depends on your home's size and insulation, your climate, your tariff and gas price, and how many rooms you would otherwise heat. We have not compared reverse-cycle air conditioning (see methodology).

The electric fireplace becomes the anchor of your home's evening life. Not because you've convinced yourself to save money, but because the room it's in becomes the most compelling space in the house.

Electric Fireplace vs Gas Fireplace: The Honest Comparison 

Gas fireplaces consume roughly 20 to 30 megajoules (MJ) of gas per hour when running, which is about 5.6 to 8.3 kWh of energy. At an assumed gas rate of 3 to 4 cents per MJ, that works out to about 60 cents to $1.20 per hour. Check your gas bill, as rates vary by state and supplier.

An electric fireplace at 1,500W costs about 48 cents per hour at an illustrative 32c/kWh.

On these assumptions, the electric fireplace costs roughly 20% to 60% less per hour. It is not an equal-heat comparison, because a gas fireplace uses far more energy per hour than a 1,500W unit and typically produces more heat (see methodology).

Beyond the hourly rate, there are other factors worth holding in mind: 

7 Ways to Keep Your Electric Fireplace Running Costs Even Lower 

Running an electric fireplace economically is less about restriction and more about being intentional. These habits make a genuine difference without sacrificing any of the experience. 

1. Let the thermostat do its job. 

Most quality electric fireplaces have a built-in thermostat that cycles the heating element on and off once the room reaches the set temperature. Using this feature, rather than running the unit at constant maximum output, can reduce actual consumption over an evening, depending on your room and thermostat setting.

2. Match the heat setting to the room. 

The 2,000W setting is designed for large, poorly insulated, or very cold spaces. In a sealed, reasonably insulated Australian living room, 1,000W is usually more than sufficient. Start low and increase only if needed. 

3. Seal the room before you switch on. 

Close the doors, close the windows. A sealed room heats faster, reaches the target temperature sooner, and keeps the thermostat from running the element continuously. This habit can make a noticeable difference.

4. Embrace flame-only mode generously. 

Build the habit of asking yourself, on any given evening, whether you actually need heat or whether you simply want the ambience. On mild nights, flame-only mode gives you everything that makes a fireplace special, for very little.

5. Use the timer function. 

Most electric fireplaces include a built-in timer. Setting the unit to turn off automatically after two or three hours means the 'I forgot to turn it off' scenario, which can add unnecessary cost to an evening, is far less likely.

6. Review your electricity tariff. 

Some Australian energy providers offer time-of-use plans with lower rates during off-peak periods. While evening fireplace use often falls within peak hours, understanding your tariff structure can inform broader household energy decisions. 

7. Size the fireplace correctly for the space. 

An undersized fireplace will run at maximum output constantly, trying to heat a space it was never designed for. Choosing a model rated for your room's floor area means the thermostat can manage the load efficiently, cycling on and off rather than running flat out. 

How to Get the Look: A Styling Guide to Electric Fireplaces in Australian Homes 

The running cost question brought you here. But the real conversation, the one that keeps playing in the background, is about what your home could feel like.

Here's how to translate the inspiration into an actual space. 

Choose your focal wall with intention 

Every great fireplace moment starts with the right wall. Ideally this is the wall you naturally face from your main seating position, not a side wall or a corner. The fireplace should be the first thing your eye settles on when you walk into the room. 

If you're working with a white wall, consider painting the feature wall in a deeper tone first: charcoal, deep sage or warm terracotta. The fireplace will sit against it like a painting. 

Let the fireplace dictate the room arrangement 

Rather than fitting the fireplace around existing furniture, try the opposite. Once the fireplace is in place, arrange your seating to face it, with sofas, armchairs and side tables oriented towards the flame. This is how traditional fireplaces have always shaped a room, and it works just as well with electric. 

The electric fireplace range at Luxo Living spans widths from compact apartment-scale formats up to wide-format statement pieces that suit larger living rooms and open-plan spaces. Measure the wall, consider the sofa width, and aim for a fireplace that's roughly two-thirds to three-quarters as wide as the sofa for visual balance. 

Layer texture around the flame 

The flame is doing the visual work. Your job is to give it a beautiful context. 

The fireplace provides the focal point. The layered textures provide the feeling. 

Choose your flame colour to suit the mood 

This is one of the details that separates a great electric fireplace experience from a merely functional one. Modern electric fireplaces offer multiple flame colour settings, and each one genuinely changes the atmosphere of the room. 

Don't default to amber every time. Experiment with colour as you would with lighting: it's a design tool, not just a feature.

Consider scale and proportion seriously 

A fireplace that's too small for a wall looks like an afterthought. A fireplace that's too wide for the room becomes oppressive. The sweet spot is a fireplace face that's roughly proportional to the wall it sits on, typically 40–60% of the wall's total width, for a balanced, considered result.

For apartment or smaller living spaces, a recessed electric fireplace set flush with the wall preserves the feeling of space while still creating a genuine focal point. The frame disappears; the flame is all that remains. 

For larger living rooms and open-plan spaces, a wider landscape format, or a panoramic three-sided fireplace visible from multiple angles, anchors the space without overwhelming it. 

Your Styling Questions Answered 

How do I make my living room feel cosier with an electric fireplace? 

Start with the flame. Then dim every other light source in the room: turn off overhead lights, switch to lamps and let the flame do the atmospheric work it's designed for. Add a throw, a candle or two on the coffee table, and a warm drink. The fireplace creates the anchor; everything else layers around it. 

Will an electric fireplace look realistic? 

Modern LED flame technology has come a long way from the flat, obviously fake flicker of early models. Today's wall-mounted electric fireplaces use layered 3D flame effects with adjustable speed, brightness, and colour that genuinely impress at close range.

Can I use an electric fireplace in a small room or apartment? 

Yes. In some ways, a smaller room is where an electric fireplace has the most dramatic impact. In a compact space, even a modest 1,000W setting can heat the room quickly, and the visual effect of the flame is proportionally more striking against a smaller wall. Look for slim-profile or flush-mounted designs that don't protrude into the room.

How do I choose between a wall-mounted and a freestanding fireplace? 

The key question is permanence. If you own your home and want a seamless, architectural look, a wall-mounted or fully recessed model gives the cleanest result. If you're renting, moving soon, or want flexibility, a freestanding fireplace console offers the same visual impact without any installation commitment, and it moves with you. 

Can I use an electric fireplace just for the ambience, without the heat? 

This is one of the best things about them: yes, absolutely. The flame-only mode is one of the most underused and underappreciated features of modern electric fireplaces. It costs very little to run (about 19 cents a month at 5W and 32c/kWh) and transforms the room just as effectively as the full heat mode. Many owners use flame-only through autumn, spring, and even summer, reserving the heat function for the coldest months. 

Is it safe to have an electric fireplace around children and pets? 

Electric fireplaces have no real flame, no carbon monoxide, no fumes and no ash. The glass front on many models stays cooler than the heat outlet, but it can still get warm in use, so supervise children and pets and follow your manual. Features such as overheat protection and a heating lock vary by model, so check the specifications. As with any appliance, standard household supervision applies.

What's the most stylish way to dress the wall around a fireplace? 

The cleanest approach is often the most effective: let the fireplace stand alone on a feature wall with nothing competing for attention. If you want to add elements, keep them low and flanking: a pair of tall thin vases, a trailing plant, or a single piece of art hung above (with care for heat clearances). Avoid cluttering the mantel area if your model has one. The flame is the art. 

Start Your Transformation Tonight 

Here's what the numbers show.

An electric fireplace running on a standard heat setting costs about 48 cents an hour at an illustrative 32c/kWh. On flame-only mode, it costs very little. On our stated assumptions, it runs cheaper per hour than a gas fireplace or whole-home ducted gas heating, and it requires no gas line and no annual servicing (see methodology).

But beyond the numbers, something else is true. 

The rooms we remember are the ones that made us feel something. A room that felt warm before anyone turned the heating on. A gathering space that pulled people in from the hallway without any effort. A home that felt finished, not because it was expensive, but because every element was intentional.

An electric fireplace is one of the few additions to a living space that changes not just the look of the room, but the feel of being in it. 

Browse the full range of electric fireplaces, from sleek wall-mounted designs to generous console formats, and find the one that belongs in your home.

A Final Note on Costs 

All cost figures in this article are illustrative calculations, not quotes. They use the formula and assumptions in How we calculated these figures, including 32 cents per kWh as an example rate. The Australian Energy Regulator publishes Default Market Offer reference prices by region, with 2026-27 prices effective from 1 July 2026 (AER final determination). Actual rates vary by state, distribution zone, retailer and tariff, and your bill also includes a daily supply charge. South Australian households typically pay more per kWh than most other states. Always refer to your current electricity bill for the rate that applies to your household.