A heat pump is significantly cheaper to run than an oil heater in New Zealand. A standard heat pump is highly efficient, producing roughly $3 to $4 worth of heat for every $1 of electricity it consumes. In contrast, an oil column heater is a resistive heater, meaning it only produces $1 of heat for every $1 of electricity it uses, making it at least three times more expensive to run.
As the New Zealand winter approaches, the dreaded “power bill shock” becomes a reality for thousands of households. When the temperature drops, the first instinct is to plug in whatever heater is sitting in the garage.
While an oil column heater is cheap to buy at your local hardware store, it acts as a silent drain on your finances, quietly doubling your monthly electricity expenses. A heat pump, on the other hand, requires a high upfront installation cost but acts as a long-term financial shield against rising energy prices.
Before you lock into a winter contract and compare power companies, you need to fix how you consume that power. In this guide, we break down the exact 2026 running costs of both appliances, explain the “coefficient of performance” in plain English, and show you exactly when it makes financial sense to use a plug-in heater instead of your main unit.
How Much Does a Heat Pump Cost to Run Per Hour in NZ?
To understand the true cost, we must look at the 2026 average New Zealand electricity rate, which sits around $0.32 per kilowatt-hour (kWh).
A standard modern heat pump (sized for a medium living room) might draw around 1.5kW to 2kW of power when initially warming up a freezing room. However, once the room reaches your target temperature (usually 20°C to 21°C), the inverter technology scales right down. On average, a heat pump maintaining a warm room will cost you between 15 to 25 cents per hour to run.
How Much Does an Oil Heater Cost to Run Per Hour in NZ?
Oil column heaters are “resistive” heaters. This means they operate at a 1-to-1 efficiency ratio. If you buy a standard 2000W (2kW) oil heater from Mitre 10 or Bunnings, it will consume exactly 2kW of electricity every hour it operates on its highest setting.
At the average $0.32/kWh rate, running a 2000W oil heater will cost you roughly 64 cents per hour. While this might not sound like much, if you run it for 6 hours an evening, you are adding over $115 to your monthly power bill for just one room.
| Heater Type | Average Hourly Cost (NZD) | Estimated Monthly Cost (6 Hours/Day) |
|---|---|---|
| Heat Pump (Inverter) | $0.20 | ~$36.00 |
| 2000W Oil Column Heater | $0.64 | ~$115.20 |
Is it Cheaper to Leave a Heat Pump on All Day in NZ?
This is one of the most debated topics in New Zealand. The short answer is: No, it is not cheaper to leave it running while you are at work.
Leaving a heat pump on 24/7 only saves money if you live in a perfectly sealed, highly insulated “Passive House” that retains heat effortlessly. Unfortunately, the majority of older NZ villas and bungalows are famously drafty. If you leave your heat pump running all day in a poorly insulated house, you are essentially paying to heat the neighborhood.
💡 Smart Timer Hack: The most cost-effective strategy is to use the timer function. Set your heat pump to turn on 30 minutes before you wake up, and 30 minutes before you get home from work. This ensures you wake up and return to a warm house without paying for 8 hours of empty heating.
Oil Heater vs. Heat Pump for a Bedroom
While heat pumps dominate large, open-plan living areas, oil heaters do have one specific tactical advantage: small, closed-off bedrooms.
Installing a heat pump in every single bedroom of a house requires a multi-split system, which can cost upwards of $6,000 to $10,000. If you only need to take the chill off a small nursery or a child’s bedroom for an hour before bed, a $60 oil column heater is a highly practical, silent, and safe alternative. They do not blow dust around, and their surface temperature is generally safer for young children compared to exposed radiant heaters.
Final Verdict: The Heat Pump Always Wins
When you look at the raw mathematics, there is absolutely no contest. A heat pump produces roughly three to four times more heat energy for every dollar you spend on electricity compared to a traditional oil column heater.
Your Action Plan for 2026: If you are moving into a rental or buying your first home, ensuring there is a modern, inverter heat pump installed in the main living area should be your top priority. However, do not throw out your cheap oil heaters entirely. They still serve a highly specific purpose: quickly warming up small, enclosed spaces like a nursery or a drafty bathroom for short periods of time.
Remember, the cheapest heater in the world will still cost you a fortune if your house is poorly insulated. Before you plug anything in, check your window seals, hang thick thermal curtains, and ensure your ceiling insulation meets the current NZ Healthy Homes Standards.
Frequently Asked Questions About Heating Costs
Are electric blankets cheaper to run than a heat pump?
Yes, significantly. An electric blanket uses very little electricity, usually costing just 3 to 5 cents an hour to run. Instead of paying to heat an entire bedroom with an oil heater, turning on an electric blanket for 30 minutes before bed is the most cost-effective way to stay warm in NZ.
Is a wood burner cheaper to run than a heat pump in 2026?
It depends entirely on your access to firewood. If you have to buy dry firewood by the cubic meter from a commercial supplier in a major city like Auckland or Wellington, a heat pump is often cheaper and far more convenient. If you live rurally and can source free or very cheap wood, a wood burner wins.
Should I clean my heat pump filters to save money?
Yes. A clogged filter forces the heat pump’s motor to work much harder to push air into the room, drastically increasing your electricity consumption. You should vacuum or wash the primary dust filters inside the indoor unit at least once a month during winter.
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