How much does a heat pump cost to run?

Heat pumps are a highly efficient way of heating your home because, rather than create heat, they simply transfer it from one space to another. How much a heat pump costs to run will largely depend on its energy efficiency, the size of the space, how often you run it and the cost of the electricity it uses.

Heat pumps run with greater efficiency

The reason a heat pump costs less to run than many other forms of heating is its high coefficient of performance (CoP). Electric heaters and gas boilers have a CoP of less than 1, meaning they burn more than 1 kilowatt of power to produce 1 kilowatt of heating power.

A typical domestic heat pump has a CoP of around 4, providing an energy output four times greater than the electrical energy used to run it. This makes using a heat pump the most efficient option, especially for large living spaces.

Heat pumps provide more than you pay for

In practical terms, this means for every $1 spent running your heat pump you will receive up to $3 worth of heating. How much the heat pump will cost to run on a daily, monthly or yearly basis will depend on several factors – most importantly the size and energy rating of the unit itself, your local climate, and the frequency of use.

According to Energywise, the average cost to run a heat pump in New Zealand is between $0.25 and $0.35 per hour. This cost is based on a medium-sized heat pump operating at an average heating or cooling load for approximately six hours per day.
However, this is just an average cost, and actual costs can vary substantially. If a heat pump is used more frequently or in a larger space than the average, it will cost more to run.
Similarly, if the unit is not properly maintained, it may not operate as efficiently, resulting in higher running costs.

Heat pumps are the most cost-effective solution

The Energy Efficiency and Conservation Authority (EECA) puts the average cost of running a heat pump in New Zealand at around $600 per year. This takes into account the fact that heat pumps are often used for both heating in winter and cooling in summer.
How much a heat pump costs to run is highly individual and will fluctuate with the price of electricity. It will also be affected by external temperatures, how well your home is insulated, and how warm or cool you want the interior to be. But no matter how much your heat pump costs to run, you can be assured that it is one of the most efficient and cost-effective ways to heat and cool your home.

Talk to a heat pump expert at SnowTemp for pricing and options.