Heat pumps and gas heating are the two most common choices for primary heating in NZ homes. Both work well — but they have very different upfront costs, running costs, and suitability depending on your location, home, and situation.
How Each System Works
Heat pump — an electrically powered refrigerant system that moves heat from outside air into your home (or vice versa for cooling). Extremely efficient because it's moving heat, not generating it. A modern inverter heat pump delivers 3–5 units of heat for every 1 unit of electricity consumed.
Gas heating — burns natural gas (piped) or LPG (cylinder) to produce heat. A flued gas fire routes combustion gases outside via a flue. An unflued gas heater releases combustion gases inside the room. Gas is 70–95% efficient depending on the appliance — most of the heat value of the gas ends up as room heat.
Side-by-Side Comparison
| Heat Pump | Piped Gas Fire | LPG Fire | |
|---|---|---|---|
| Upfront cost (installed) | $2,000–$5,000 | $3,000–$8,000 + gas connection | $2,000–$5,000 |
| Running cost per hour | $0.10–$0.25 | $0.40–$1.00 | $0.80–$2.00+ |
| Efficiency | 300–500% (COP 3–5) | 70–90% | 70–90% |
| Also cools in summer | Yes | No | No |
| Works in power cut | No | Usually yes | Yes |
| Carbon monoxide risk | None | Low (flued) | Low (flued) / High (unflued) |
| Available everywhere in NZ | Yes | Only piped gas areas | Yes |
| Needs servicing | Filter clean every 3–6 months | Annual WOF recommended | Annual WOF recommended |
| Typical lifespan | 10–15 years | 15–25 years | 15–25 years |
Running Cost Comparison
NZ electricity averages around 30–35c/kWh and piped natural gas around $1.50–$2.00 per kWh equivalent (varies by region and retailer). LPG is typically $3.00–$4.00 per kWh equivalent.
| Heating a 30m² living room for 3 hours | Cost |
|---|---|
| Heat pump (COP 3.5, 1.2kW draw) | $0.36–$0.45 |
| Piped gas fire (5kW output, 85% efficient) | $2.65–$3.50 |
| LPG fire (5kW output, 85% efficient) | $5.30–$7.00 |
Over a full 90-night NZ winter, that's roughly: - Heat pump: $100–$120 - Gas fire (piped): $480–$630 - Gas fire (LPG): $950–$1,260
The efficiency gap is significant. Heat pumps win on running costs in virtually every NZ scenario.
When Gas Heating Still Makes Sense
Despite the running cost disadvantage, gas heating has genuine advantages:
Instant, radiant heat — a gas fire produces immediate warmth with a visual flame. Many people find it more comforting than the fan-driven warm air from a heat pump, particularly in lounge/living areas.
Works during power cuts — many gas fires can be lit manually or have a battery ignition. This matters in storm-prone areas. In the South Island especially, the ability to heat during winter power outages can be important.
Heritage homes — a gas fire fits the aesthetics of a character villa or bungalow more naturally than a wall-mounted heat pump head unit.
Existing gas connection — if you already have piped gas for cooking and hot water, adding a gas fire has a lower marginal upfront cost (no new connection required).
Regional Considerations
Auckland and North — piped gas available in most urban areas, but the mild climate means heating demand is lower. Heat pumps are the default choice; also provide summer cooling which Auckland actually needs.
Wellington — strong winds mean heat moves out of homes fast. Heat pumps work well but need to be sized correctly. Piped gas available in most suburbs.
Christchurch and South Island — winters are cold. Air-source heat pumps still work well down to -15°C with modern inverter technology. Piped gas available in Christchurch; LPG more common in rural areas.
Rural NZ — no piped gas, so the choice is heat pump (electricity), LPG, or solid fuel (wood burner). Heat pumps are usually the most cost-effective; LPG is expensive.
The Verdict
For most NZ homeowners, a heat pump is the better choice — lower running costs, free cooling in summer, no indoor combustion byproducts, and available everywhere. The running cost saving vs gas typically pays back the installation cost within 3–5 years if switching from LPG.
Gas makes more sense if: - You value radiant/visual heat in a living area - You're in a cold area and want heating security during power cuts - You already have gas and a fire is a minor addition to an existing system - Aesthetics matter and a heat pump unit doesn't suit the room
Many NZ homeowners have both — a heat pump as the primary, efficient heating for most rooms, and a gas fire in the main living room for atmosphere and backup.