Heating is one of the largest energy users in the average Kiwi home — making up about a third of your energy bill. Costs vary depending on the type of heater you use, and how efficient the specific model is. 

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Make a good investment

As well as upfront and running costs, here are some other considerations to think about when you choose a new heating and/or cooling system.

  • Energy efficiency — A more efficient system, with heat pumps being the most energy efficient for space heating, is cheaper to run over time, so is usually worth the upfront investment over less efficient options.
  • The right size for you — Choose the right-sized heater for the room — too small and it’ll struggle, too big and you’ll pay more. If you're buying a heat pump, a good supplier should be able to come to your place and assess how big the space is, how many windows there are, and the climate you live in, then give you advice that’s tailored to your home. 
  • Renewable energy — Choose a heater that uses renewable energy, like wood, wood pellets or electricity (which is on average about 80-85% renewable).
  • Opportunities when building or renovating — Choosing all electric options over gas for your heating, hot water and your stove top/oven means that you can avoid the ongoing fixed costs of a daily gas connection charge, or LPG bottle rental.

Comparison of home heating options

  • Heat pumps and electric heaters

    Generally, heat pumps are the lowest cost and lowest emissions option for home heating, particularly for general living areas and areas which require frequent heating or cooling. Heat pumps can be used to heat one room, or many rooms if it's a ducted or multi-split system.

    Plug in electric heaters can be a good option for bedrooms, studies and other small rooms.

  • Wood and pellet burners

    Wood is a low emissions and renewable fuel source. Wood fires and pellet burners are typically cheaper to run than gas heating, but more expensive than heat pumps.

    A building consent is required for the installation or replacement of a wood burner, and many local councils have specific regulations because of air quality concerns.

  • Gas heaters

    Gas heaters can run on mains natural gas (North Island only) or bottled liquid petroleum gas (LPG). Both are fossil fuels, so directly generate greenhouse gas emissions. For an average New Zealand household, running a heat pump costs $122 less a year than piped gas heating, and $352 less a year than heating with bottled LPG.* These savings don't include daily gas connection costs.

    Avoid unflued gas heaters — also known as cabinet heaters, these tend to be the most expensive type of heating an

Efficiency matters

Some models of heat pump are more efficient than others — this has an impact on their running costs.

Our Efficient Appliance Calculator lets you filter and compare heat pumps being sold in New Zealand. You can find the type of heat pump that meets your needs, and compare the different models based on their energy efficiency rating and in different zones.