Heat Pumps in New Zealand: The Complete Homeowner's Guide

Let's be real — NZ houses are cold. Most homes built before 2000 have bugger-all insulation, single glazing, and a draughty underfloor that might as well be open to the elements. A heat pump won't fix all of that, but it's the single best bang-for-your-buck upgrade you can make. Here's what you need to know before you buy one.

At a Glance

Typical cost: $2,000–$6,000 for a single room; $8,000–$15,000+ for whole-home ducted systems (including installation and GST)
Annual savings: Roughly $600–$1,200 per year compared to gas or electric bar heater heating, depending on your climate and usage
Subsidies available: Warmer Kiwi Homes programme covers 80–100% for eligible homeowners; council rates plans and green loans also available
Best for: Every room in your home, but especially living areas and bedrooms — they heat and cool
Installation time: 1–2 days for a single split system; 3–5 days for ducted whole-home

How heat pumps work

A heat pump is clever: it moves heat from outside into your home, rather than generating heat from scratch. Even on a cold winter's day, there's still thermal energy in the air outside — a heat pump extracts that energy and transfers it inside where you need it. That's why they're so efficient.

Here's the basic idea. The outdoor unit draws in air, runs it over a heat exchanger, and extracts the available warmth. Refrigerant carries that energy indoors to the indoor unit, which releases it into your room. The system uses electricity to drive this transfer — far less than it would take to generate that same warmth electrically from a bar heater.

The bonus? In summer, you flip the cycle into reverse and it works as an air conditioner, pulling hot air out of your home and dumping it outside. One unit handles both heating and cooling.

Types of heat pumps available in NZ

Hi-wall split systems are the workhorse. An outdoor unit connects to an indoor wall-mounted unit via insulated piping. They're the most affordable option, easiest to install, and perfect for single rooms. Most Kiwis have one of these.

Floor consoles sit at floor level (usually beneath a window) and are popular for bedrooms. They distribute warm air more evenly across lower seating areas than wall-mounted units, though they take up floor space. Useful if you want heating without a unit on the wall.

Ducted systems run flexible ducts through your ceiling cavity, feeding warm or cool air to multiple rooms from a single central unit. They're the priciest option and best suited to new builds or major renovations when the walls are open. If your home already has walls, retrofitting can get expensive.

Multi-split systems use one outdoor unit connected to two or more indoor units (different rooms). Cheaper than installing separate outdoor units in each room, but the installer needs to run multiple sets of piping. Good if you want to heat several rooms without the cost of full ducting.

Popular brands in NZ

Mitsubishi Electric is the most popular choice in NZ for good reason — they're reliable, widely stocked, and installers know them inside out. They perform well in cold climates and parts are easy to find. Mid-range to premium pricing.

Daikin builds efficient units with lower running costs and quiet operation. Slightly pricier than Mitsubishi, but good for those who prioritize efficiency and noise levels. Strong after-sales support.

Panasonic offers a solid mid-range option. Good performance, decent warranty, and reasonable pricing. They're a solid choice if you want to balance cost and quality without paying top dollar.

Fujitsu specializes in cold-climate performance — their units are designed to work well even when outdoor temps drop below zero. If you're in the South Island or high country, Fujitsu is worth considering.

Haier is the budget-friendly option. Cheaper upfront, but you're trading some build quality and reliability for a lower price tag. Fine if you're looking to heat a bach or rental property you're not planning to keep long-term.

Don't get hung up on choosing the "best" brand — any of these will keep you warm. Focus instead on finding a good installer who knows the brand well and stands behind their work.

What it costs

Heat pump pricing varies, but here's what you're realistically looking at in NZ, including installation and GST:

Single room, small space (2.5kW unit) — $2,000–$3,000. This covers a bedroom or study. Cheapest option, quickest to install (usually one day).

Medium-sized room (5kW unit) — $3,000–$4,500. Good for lounges and larger bedrooms. Most homes end up in this bracket.

Large room or open-plan space (8kW+) — $4,500–$6,000. For big living areas or if you're trying to heat multiple adjoining spaces from one unit.

Whole-home ducted system — $8,000–$15,000+. These are major undertakings. Price depends heavily on your home's layout, whether you have existing ductwork, and how many rooms you're conditioning.

What drives the price? Brand name (premium brands cost more), your installer's rates, and installation complexity. A back-to-back installation (outdoor unit on the opposite side of one interior wall) is cheap and fast. Long pipe runs to reach rooms far from the outdoor unit add labour and materials. If your switchboard needs upgrading to handle the load, add $500–$2,000.

Always get 2–3 quotes. Prices vary wildly depending on the installer and your specific situation.

Running costs

Expect roughly $1–$3 per day to run a heat pump during winter, depending on the unit size, outdoor temperature, and how much you use it. That's about $300–$900 for a winter season (May–September).

Compare that to other heating: a gas heater runs about $3–$5 per day, an electric bar heater $2–$4 per day, and a wood burner has variable costs but can be labour-intensive. Heat pumps typically cost about one-third the price of gas heating for the same warmth, which is why they're so popular.

Your running costs will be highest on the coldest days and lowest during mild spells. If you live in Auckland or Wellington, you'll run cheaper than someone in Dunedin or the Central Plateau.

Subsidies and financial help

Warmer Kiwi Homes programme is your first port of call. If you own your home and it was built before 2008, you're likely eligible for 80–100% of the installation cost covered. Community Services Card holders and residents in certain high-deprivation index areas qualify first. The programme also covers insulation upgrades, so you could fix both heating and cold-wall issues with one application.

Council rates schemes — many councils let you spread the cost over 10 years via your rates bill. Check with your local council; some have capped interest rates or zero-interest options for energy upgrades.

Green loans from banks — ANZ, BNZ, and ASB all offer low-interest loans for energy improvements, including heat pumps. Rates are often 0.5–1% lower than standard personal loans if you're borrowing to fund an upgrade.

You can check your eligibility for the Warmer Kiwi Homes programme using our subsidy checker in about two minutes.

How to choose the right installer

Your installer must be a licensed electrician. Full stop. If they're not, don't hire them.

Beyond that, check if they're an authorized installer for the brand they're fitting. Ask about warranty — on both the unit itself (usually 5–10 years from the manufacturer) and on their installation workmanship (usually 2–5 years). A good installer will back their work and give you written warranty documentation.

Read reviews online and ask for references from recent jobs. Get at least 2–3 quotes — you'll see the range pretty quickly, and you'll get a feel for who's genuine.

PoweredNZ verifies installer credentials, so you can search vetted installers in your area.

What to ask your installer

What size unit do you recommend for my room and why? Don't just accept a number — get their reasoning. They should talk about room size, ceiling height, insulation quality, and what temperature you want to maintain.
Is this a back-to-back installation or will you need a long pipe run? Back-to-back is faster and cheaper. Longer runs add cost and can reduce efficiency slightly. Understand what your site requires.
What's included in the price — unit, installation, electrical work, and commissioning? Make sure everything is on the table. Some quotes exclude wiring upgrades or the final system check.
What warranty do you provide on the installation workmanship (separate from the manufacturer's warranty)? You want protection on both the equipment and the labour. Get this in writing.
Are you an EECA-approved provider for the Warmer Kiwi Homes programme? If you think you'll apply for the subsidy, your installer needs to be approved. Not all installers are, so ask upfront.

Getting started

A heat pump is one of the smartest investments you can make in a cold NZ home. It'll keep you warm, cut your power bill, and work as an air conditioner when summer rolls around.

Not sure what your home needs? Take our free 2-minute Home Energy Assessment to figure out where your heat loss is happening and what upgrades would make the biggest difference.

Ready to get started? Find verified heat pump installers in your area — we've checked their credentials so you don't have to.