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What Does It Really Cost to Heat a Kiwi Home?

23 June 2025

What Does It Really Cost to Heat a Kiwi Home?

Heating your home in NZ? The cost can vary wildly — and it’s not just about what heater you buy. Locationhouse design, and lifestyle all play a major role.

Here’s the full picture

Heating Types & Running Costs

Heat Pumps

  • Most efficient: 3–5kW of heat per 1kW of power
  • Cost: ~26c per kWh of heat
  • Ideal for regular use in medium to large rooms

Electric Heaters

  • Cheap upfront, expensive long-term
  • Cost: 19–40c per kWh
  • Best for small or short-use rooms

Wood Burners

  • Great for ambiance & off-grid setups
  • High install + wood costs
  • Needs dry storage & chimney cleaning

Gas Central Heating

  • Efficient where natural gas is available (North Island only)
  • High install cost, lower running cost
  • LPG option available but costlier

Key Cost Factors (That Aren’t Your Heater)

Location

  • Colder regions (Central Plateau, South Island) = more heating hours
  • Natural gas is NOT available in the South Island
  • Choose your system accordingly

House Design

  • More heat loss in homes with:
  • Poor insulation
  • Lots of glazing (windows)
  • Complex, open designs
  • Well-designed homes cost much less to keep warm

Lifestyle

  • Prefer a warm house 24/7? Expect higher costs
  • Even a 1–2°C increase can bump heating use by 5–10%
  • Heating unoccupied rooms = wasted energy

Heat Smarter: Tips to Save

Insulate First

  • Focus on ceiling + underfloor insulation
  • Stops heat loss before you even switch the heater on

Use Efficient Heating

  • Heat pumps or gas (if available) are most cost-effective

Target Your Heat

  • Heat only occupied areas
  • Use timers, thermostats, and door seals

Check Subsidies

  • The Warmer Kiwi Homes programme covers up to 80% of insulation/heating costs for eligible homes

Consider Hot Water Heat Pumps

  • Save big on water heating — often 30–60% less energy used

Track Your Use

  • Use your energy provider’s app to spot inefficiencies

Thinking about warming up your place?

Whether you’re ready to renovate or just scoping it out, we’re here to help.

Chat to the RB Thomas Ltd team today — we’ll help you build warm, smart, and cost-effective.

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