Why heat pumps are a great option

Heating is one of the largest energy users in the average Kiwi home — making up around a third of your energy bill. Choosing an efficient heat pump to heat your home can help to lower your monthly energy bills.

Electric heat pumps are highly energy efficient, and cheaper to run than gas heaters, wood burners, or other electric heating options.

If you’re building, renovating, or looking to replace an older heating system that’s at the end of its life — heat pumps are a smart choice.

Considering a switch? Know your numbers

  • Upfront costs

    Around $4400 including purchase price and installation.

  • Savings

    A heat pump could save the average household $122 per year*
     
    Find out how much your household could save

  • Efficiency

    Heat pumps can provide about 3–5 times the amount of heating for the same amount of input energy as gas heaters.

  • Features

    • Low running costs
    • Low emissions
    • Instant heating
    • Aircon/cooling option
    • Consistent temperature

  • Lifespan of tech

    15 years

  • Install

    Needs to be installed by a licensed electrician.

    Get more installation information

Installing an efficient heat pump is one of the best moves you can make to lower your energy bills long term.

How much could you save?

30 seconds

Use our calculator to see how much a hot water heat pump could save you. 

Why choose a heat pump

  • Low running costs — Heat pumps are the lowest cost option for home heating available, around a third of the cost of heating with gas. Running costs can be lowered further if solar panels are installed and a portion of the heating is done during the day.
  • Instant heating (and cooling) — Room temperature can be controlled with the press of a button and can be controlled using timers to automate your home heating around your schedule.
  • Highly efficient — Heat pumps are incredibly efficient, meaning they consume less energy to produce heat than other options. In New Zealand, the average heat pump can put out three times more heat than the power they consume.
  • Low emission — Heat pumps are 100% electric. New Zealand’s highly renewable electricity grid makes them the lowest emission heating option – with around 10 times lower emissions than gas or LPG heating.**
  • Cheapest over time – Electric heat pumps are the cheapest heating option, considering both upfront and operating costs. While the upfront cost can be higher than bar and column heaters — heat pumps are about a quarter the cost to run, making them much cheaper over time.**
  • Versatile — Heat pumps can heat one room, or many rooms if you buy a ducted system.
  • Future proof — In the near future, our electricity grid will require demand response capabilities in equipment — heat pumps can offer this.

How heat pumps work

Heat pumps work by ‘pumping’ a refrigerant between inside and outside — using the temperature difference between the two to gasify or liquify the refrigerant — producing heating or cooling.

There are different types of heat pump to choose from, depending on what you need in your home.

  • Single-split systems are easy to install and cost effective — with one outdoor unit connected to an indoor unit that heats one room.
  • Multi-split systems are great for larger homes, connecting one single outdoor unit to multiple indoor units that heat different rooms.
  • Ducted heat pumps offer central heating for your whole house, blowing heated air through a duct system into multiple rooms in your home. They can be more expensive upfront than the other options.

Efficiency matters

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

The efficiency of a heat pump depends on the temperature both indoors and outdoors, and the refrigerant used. To help you out, Zoned Energy Rating Labels on heat pumps tell you how well a heat pump or air conditioner performs in NZ’s climate zone.

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.

Using a heat pump with 3 stars on the Energy Rating Label generates 34% less emissions than a similar heat pump with only 1 star — so make sure you pick the model with the highest rating in your price range.

Source: EECA, 2024

Common questions

  • Installing a heat pump

    For ease of installation and optimum performance, the indoor unit should be installed high on an exterior wall, away from corners.  

    The outdoor unit should ideally be installed within around 15 meters of the indoor air outlet, with clear space on either side for airflow and easy access for maintenance. 

    It costs $4000 to buy a heat pump and get it installed. 

  • Find a licensed installer

    For the best results, get your heat pump installed by a licensed professional. They will be able to advise you on the best location for installation.

Switch on energy efficiency

Powering your home with efficient appliances could save you thousands in energy costs.

Use our calculator to work out which appliances offer the best long-term savings for your home.

Even if you’re not planning on upgrades any time soon, it can be helpful to think ahead and have an energy plan for your home. 

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