Electricity guide · New Zealand
Heat Pump vs Electric Heater Cost NZ
Compare New Zealand heat-pump and electric-heater running costs, delivered heat, efficiency, room use, winter operating assumptions and ownership costs.
Reviewed 26 August 2026
Reviewed by KiwiTools editorial team — NZ energy researchers using Electricity Authority and EECA sources
General planning information. Electricity prices, time bands, appliance performance and solar export terms vary by address, retailer, installation and usage.
Key points
Heat pump and resistance heater comparison
A resistance heater converts electrical input into roughly the same amount of heat at the point of use.
A heat pump moves heat and can deliver several units of heat per unit of electricity under suitable conditions.
Actual cost depends on sizing, temperature, settings, insulation, room area, runtime and the applicable power rate.
What to compare before choosing
Do not compare wattage alone when the devices deliver different amounts of heat.
| Check | Heat pump | Plug-in electric heater |
|---|---|---|
| Heating method | Moves heat using a refrigeration cycle | Converts electrical input to heat |
| Typical use | Regular heating of a suitable living area | Local, occasional or supplementary heating |
| Upfront requirement | Purchase and professional installation | Lower-cost portable appliance |
| Main cost drivers | Efficiency, outdoor temperature, sizing and settings | Rated input, thermostat cycling and runtime |
A plug-in heater makes one unit of heat from roughly one unit of electricity
Fan, panel, oil-column and radiant resistance heaters differ in how they distribute warmth, but none creates several kilowatt-hours of room heat from one kilowatt-hour of electricity. A 2 kW unit running flat out costs about 60 cents an hour at 30 cents per kWh.
An oil column is not inherently cheaper because it stays warm after switching off; the stored heat came from electricity consumed earlier. Comfort and control can still make one style better for a small space.
A heat pump moves heat, so the comparison changes
A heat pump with a coefficient of performance around 3 can deliver roughly 3 kWh of heat for 1 kWh of electrical input under the stated conditions. That usually makes it the better choice for regularly heating a suitable room.
Cold outdoor air, defrost cycles, poor sizing, dirty filters and an open-plan house can reduce performance. Use model and climate-zone data instead of assuming one COP all winter.
Related: heat pump heating vs cooling cost Related: calculate electricity cost from watts Related: electricity rate per kwh
The small room exception is real
Installing a heat pump solely for a tiny room used twenty minutes a day is unlikely to repay its upfront cost. A portable heater can be sensible for brief, local heating even though every delivered unit costs more.
For a living area heated daily, the heat pump normally wins unless installation is impractical. Compare useful heat and comfort, not appliance wattage alone.
Frequently asked questions
Is a heat pump cheaper to run than an electric heater?
For regular heating in suitable conditions, it is generally more efficient, but actual cost depends on the home, system and use.
Why can a heat pump deliver more heat than its wattage?
It uses electricity to move existing heat rather than creating all delivered heat through resistance.
Is an oil-column heater cheaper than a fan heater?
At the same electrical input and delivered room heat, resistance heaters have similar energy cost; thermostats and use patterns create practical differences.
What power rate should I use?
Use the variable rate applying during the expected heating hours, including separate peak and off-peak scenarios where relevant.
Put the guide into practice
Continue with related KiwiTools calculators
Test your own numbers, compare scenarios and return to the guide to check assumptions and limitations.