What’s Cheaper in the Long Run: Heat Pumps vs Gas Heaters?

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Heating is one of the biggest energy expenses for Kiwi households, especially in cooler regions like the Hutt Valley. As more people consider switching from gas to electric heating, one question keeps coming up: Is a heat pump really cheaper than a gas heater in the long run? In this blog, we break down the real costs, efficiency, and environmental impact of both systems so you can make an informed choice.

1. Upfront Costs Installing a new heating system involves a significant upfront cost, and many homeowners naturally look at the initial price tag to make their decision. Here's a quick comparison:

System Type

Average Cost (Installed)

Heat Pump

$2,500 - $4,000

Flued Gas Heater

$2,000 - $3,000

While gas heaters might appear slightly cheaper to install, it’s important to consider the total cost of ownership over the lifetime of the unit. Heat pumps often offer higher energy savings that pay back the initial investment within a few years.

2. Running Costs Per Year Heating systems can account for up to 35% of a household’s total energy bill. Understanding how much each system will cost to run annually can highlight the true long-term value.

According to EECA (Energy Efficiency & Conservation Authority):

  • Heat Pump: ~$200 - $300 per year
  • Flued Gas Heater: ~$700 - $900 per year

Bar Chart: Annual Running Cost Comparison

Heat Pump          | ███████  $250

Gas Heater         | ████████████████  $800

This means homeowners using gas heating could spend over three times as much annually compared to those using a heat pump. Over a 10-year period, that adds up to thousands in potential savings.

3. Efficiency Matters: Heat Pump vs Gas Another critical factor is efficiency. A more efficient system converts more of the energy it uses into heat for your home.

  • Heat Pump: Heat pumps typically deliver around 3kW of heat output for every 1kW of electricity used—making them about 300% efficient, compared to gas heaters which are often below 100% efficiency.
  • Gas Heater: Converts only around 80-90% of gas energy into heat. The rest is lost through ventilation and exhaust.

With such a wide efficiency gap, it becomes clear why heat pumps are the preferred choice for ongoing savings.

4. Environmental Impact New Zealand’s electricity electricity is one of the cleanest in the world, with over 80% coming from renewable sources (NZ Electricity Statistics – MBIE). This makes switching to electric heating systems even more appealing for those looking to reduce their carbon footprint.

  • Gas Heaters: Rely on fossil fuels and contribute significantly to CO2 emissions.
  • Heat Pumps: Use clean electricity and emit far less carbon.

Carbon Emissions per Year:

System Type

Estimated Emissions (kg CO2/year)

Heat Pump

50 - 100

Gas Heater

1,200 - 1,500

For environmentally conscious households, switching to a heat pump is a clear win.

5. Comfort & Safety Beyond cost and efficiency, comfort and safety are essential considerations.

  • Heat pumps offer both heating and cooling, giving you year-round climate control.
  • They maintain a steady, dry heat, ideal for damp-prone Kiwi homes.
  • Modern models come with built-in thermostats and remote controls.
  • Gas heaters, especially unflued types, can release carbon monoxide and add moisture to the air, potentially leading to mold or indoor air quality issues (Consumer NZ – Heating Options).

6. Maintenance & Lifespan

  • Heat Pumps require minimal servicing—mainly cleaning filters and a periodic professional check.
  • Gas Heaters need regular servicing to check for gas leaks and ensure safe operation.

Heat pumps typically last 10–15 years, while gas heaters may need replacement sooner, especially with heavy use.

Conclusion: Heat Pump Wins on Value & Sustainability While the upfront cost might be slightly higher, heat pumps are cheaper to run, more efficient, safer, and far better for the environment. Over a decade, you could save thousands in energy bills while reducing your household's carbon footprint.

If you're planning to future-proof your home and cut down on energy bills, a heat pump is a smart, sustainable choice for New Zealand homes.

Ready to switch? Talk to local experts or check out Electrify the Hutt’s resources to get started.

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