Electric heater vs. central heating: What’s is the smarter investment?

Heating technology is advancing quickly, and the systems that worked for your parents may no longer be the smartest choice today. With energy-efficient models, changing utility rates, and new incentives emerging, the electric heater vs. central heating decision is no longer just about the cheapest upfront cost. More homeowners are weighing long-term performance, environmental impact, and future-readiness alongside day-to-day comfort.

In this guide, we put central heating vs. electric heater options to the test across the factors that matter most. From installation and maintenance to everyday operation, you’ll get a clear picture of which system truly works best for your home, lifestyle, and budget.

What is an electric heater?

Electric heater plugged in to warm a small room. (Source: iStock)

An electric heater is a simple solution for heating one room without needing a full heating setup, perfect for a chilly spare room, small apartments, or properties without a gas supply. These heaters use a heating element to convert electricity directly into warmth, and most models plug into a standard socket so you can set one up in minutes. Just keep in mind they work best in well-insulated spaces and have a limited heating capacity.

The most common types in the US include storage heaters (which charge up overnight using off-peak electricity rates), panel heaters for rapid convection heating, infrared panels that heat objects directly like sunlight, and oil-filled radiators that retain heat long after switching off. You’ll also find portable fan heaters for quick blasts of warmth and electric radiators that combine convection and radiant heat.

What is central heating? 

Wall-mounted radiator integrated with central heating. (Source: iStock)

A central heating system is a cost-effective heating option that warms your whole home from a single heat source, usually a boiler. The boiler heats water, which flows through pipes to radiators in each room, giving you steady, even warmth throughout the house. In the US, most homes have gas central heating with water-filled radiators, though you can also have electric boilers or modern heat pumps installed by a qualified electrician.

The main types include combi boilers, which heat water only when needed (more common in European systems), and standard boilers with water tanks, found in some older US homes. You can also install electric heating systems and connect them to solar panels, giving you a cleaner, more sustainable way to power your central heating. Radiators for these systems range from simple panels and traditional columns to modern designer styles and bathroom towel rails.

Central heating vs. electric heater: Which one should you invest in?

Whether you’re considering underfloor heating vs. radiators or wondering if electric fan heaters are expensive to run, this section will explain everything you need to know to decide which heating solution suits your needs.

In terms of upfront cost

Convenient heating with a plug-in electric heater. (Source: iStock)

Electric heaters offer a much simpler upfront investment since most models simply plug into existing electrical outlets or require basic wall mounting. You can start with one or two units and add more over time as needed, spreading the cost rather than paying for an entire system upfront. However, if you want electric heaters throughout your whole home, the individual unit costs can add up quickly.

If you want central heating, you’ll need to factor in the cost of installing pipework throughout your entire home, radiators for each room, a hot water cylinder (for system boilers), and professional installation by certified engineers. The complexity increases if you’re retrofitting an older property that lacks existing pipework, as this means opening walls, running pipes under floors, and potentially upgrading your electrical supply to handle pumps and controls.

In terms of running costs

For running costs, central heating tends to be more affordable in the long run. With gas at 0.928c per kWh and electricity at 16.22c per kWh, gas central heating is roughly four times cheaper to operate. A typical household might spend $600 to $1,200 annually heating their home with gas central heating, while using multiple electric heaters for whole-home heating could cost well over $2,500 per year.

As for maintenance, note that central heating requires annual HVAC servicing between $175 and $350 per year, plus occasional repairs to boilers, heat pumps, or radiators. The good thing about electric heaters is that they need virtually no maintenance beyond occasional cleaning. However, individual units may still need replacing after 10 to 15 years.

In terms of energy efficiency

Adjusting the thermostat in a central heating system. (Source: iStock)

Electric heaters are nearly 100% efficient at converting electricity into heat at the point of use, meaning almost all energy consumed becomes warm. However, when people ask “Do fan heaters use a lot of electricity?”, the issue is that they must run continuously to maintain temperature and have no heat retention, making them less efficient for sustained heating than systems with thermal mass.

Some models, like storage heaters, can work more efficiently by charging overnight during off-peak periods and then releasing stored heat during the day. Even so, their efficiency still depends on how well that heat is retained and controlled within your space.

Central heating proves more energy-efficient for whole-home warmth because a single heat source distributes warmth to multiple rooms through a connected system. Water-filled radiators retain heat longer than air, requiring less constant operation. Modern central heating can also be optimized with zoning controls and smart thermostat installation, allowing you to heat only occupied rooms and eliminate unnecessary energy waste.

In terms of environmental impact

With over 20% of the US electricity now sourced from wind and solar power, the carbon footprint of electric heating shrinks every year. It also produces zero on-site emissions, meaning no carbon dioxide or nitrogen oxides are released into your home or the surrounding air. The same environmental differences you see in electric boiler vs. gas boiler comparisons apply when weighing electric heaters against gas-powered central heating.

On the other hand, gas-based central heating continues to contribute to US carbon emissions because burning gas releases CO₂ directly at the point of use, making gas one of the largest contributors to greenhouse gases from home heating. The environmental gap will only widen as renewable energy sources expand and the electricity grid becomes cleaner, while gas heating remains fundamentally tied to fossil fuel combustion.

In terms of space required

Central heating unit taking up low wall space. (Source: iStock)

When comparing electric vs. gas heating, the space needed can be a big deciding factor. Electric heaters are flexible and require very little infrastructure, making them ideal for smaller homes, apartments, or house renovation projects where space is tight. They can be wall-mounted, portable, or even built into baseboards without the need for pipework or bulky central equipment. For safety, keep heaters about three feet from anything flammable and allow 6 to 12 inches of clearance around them.

As for central heating systems, you must consider your available space. You’ll need a central boiler (often in a utility room or cupboard) and a network of pipes to connect radiators throughout the home. Each room needs wall space for a radiator, usually under a window for best heat distribution. While this setup creates a fully integrated system, it works best in properties with enough room for the infrastructure.

In terms of control

Need enough heat for different areas at once? Electric heaters can be challenging to control since each unit has its own thermostat managing temperature in a single room. While many newer electric models include smart features like programmable timers and app-based remote control, heating your entire home still requires managing multiple units separately, which can get complicated fast.

A central heating system, on the other hand, regulates the temperature across multiple rooms from one control point. Modern setups use smart thermostats and programmable controls to set schedules for individual rooms or zones, keeping warmth even and efficient. Whether you’re managing radiators or coordinating underfloor heating installation with other heat sources, everything works together seamlessly.

Take action on your heating today

And there we have our complete guide! As you can see, the right heating choice can make your home more comfortable and energy efficient all year round. With the benefits of electric heaters and central heating now clear, the next step is finding a professional who can get the job done properly.

Our advice? Skip hours of searching and let the experts come to you! Post your heating job on Airtasker and receive quotes from qualified HVAC professionals. From quick fixes to complete system upgrades, get competitive pricing and reliable results without the hassle.