Having a comfortable, warm home in winter and a cool one in summer is the goal for any homeowner. However, choosing the right heating system to get you there is where things get more complicated and depends on many factors.
‘Gas vs electric heating?’ is one of the most common questions we get from homeowners. Most people assume gas heating is the cheaper option, but the gap between that and electric heating has narrowed significantly. For most New Zealand homes today, electric heating via a heat pump comes out ahead on running costs, installation flexibility, and long-term value.
If you’re weighing up gas heating vs electric heating and want a straight answer for your specific situation, we break it down below.
Quick Answers
A gas heating system burns fuel (either piped gas or bottled LPG) to heat air, which is then pushed through your home. It’s fast, it feels warm, and it’s been the default choice in many New Zealand homes for decades.
Gas systems produce roughly 1kWh of heat for every 1kWh of gas consumed. And as gas prices have climbed steadily, that 1:1 ratio gets more expensive every year. Gas availability and pricing in New Zealand are also increasingly uncertain, which makes long-term cost planning difficult.
Gas heating systems have no cooling function in the summer.
Panel heaters, fan heaters, and oil column heaters all work the same basic way by converting electricity directly into heat at roughly a 1:1 ratio. While it’s simple, it’s not incredibly efficient, which will be reflected in your power bill if you run heating for extended periods.
Rather than generating heat, heat pumps extract warmth from the outside air and move it indoors. That’s why they can deliver up to 4-5kWh of heat for every 1kWh of electricity used, which is a far better return than any other heating option available to NZ homeowners.
At current electricity rates, that makes a heat pump roughly half the cost of gas heating per kWh of heat delivered, and around 75% cheaper than running basic electric heaters.
They also run in reverse during summer, pulling warm air out of your home to cool it down. You get one all-in-one system that provides year-round usage.
Gas heating made sense when gas was cheap, and heat pumps were less efficient than they are today. That’s no longer the situation for most New Zealand homeowners.
Piped natural gas is only available in parts of the North Island, and even then it comes with a daily connection fee on top of your usage. Most Bay of Plenty and Waikato homeowners who rely on gas use bottled LPG, which is the most expensive fuel option available in New Zealand.
When you look at electric heating vs gas heating costs, the gap is hard to ignore. Data from Rewiring Aotearoa’s Electric Homes Report shows that heat pumps cost roughly three times less to run than gas heating when you compare like for like. EECA figures show the average New Zealand household saves $122 per year switching from piped gas to a heat pump, and $352 per year compared to bottled LPG. And that’s before daily gas connection costs are factored in.
With gas prices continuing to rise and modern heat pumps delivering up to 400% efficiency, electric heating through a well-sized heat pump is the stronger long-term option for most homes in Hamilton, Tauranga, and the wider Waikato and Bay of Plenty regions.
The Nice Air team can help you work out the right heat pump size and type for your home, so you’re not overspending on a system that’s too large or choosing an underpowered one that can’t keep up on the coldest days.
With modern heat pumps, electric heating is generally cheaper. A heat pump produces around 4kWh of heat per 1kWh of electricity used, making it roughly half the running cost of gas heating.
Heat pumps extract heat from the outside air, even in cold temperatures, and move it indoors. Modern units are designed to operate efficiently in New Zealand’s winter conditions without a significant drop in performance.
Yes. A properly-sized heat pump handles both heating in winter and cooling in summer from a single system, making it a complete replacement for gas heating with lower running costs. If you’re running gas for hot water as well as heating, a separate heat pump hot water system can cover that too.
No. In some cases, it’s better for your health than gas. Unflued gas heaters release pollutants including nitrogen dioxide and carbon monoxide directly into the room, and the water vapour they produce can encourage mould and dust mite growth.
Heat pumps produce no combustion byproducts at all, and many modern units also include built-in filtration that removes dust, allergens, and airborne particles as the system runs. This makes them a genuinely healthier option for families, especially those with asthma or respiratory problems.
When comparing gas heating vs electric heating, it’s easy to see that numbers increasingly point in one direction. Electric heat pumps provide lower running costs, no combustion risks, year-round heating and cooling from a single system, and no exposure to a gas supply that’s becoming less reliable and more expensive every year.
With over 10 years of experience and 10,000 heat pump installations across the Bay of Plenty and Waikato, we’ve helped homeowners find the right heating solution for every kind of home. Book a free consultation today, and we’ll walk you through your options.
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