The Cost of Heat Pump Installation in New Zealand: What Homeowners Need to Know

Editor's Note: This article was initially published on September 17, 2024 and has been updated in September 26, 2025. The content has been edited for clarity, flow, and to provide the most current and relevant information.

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Heat pumps are New Zealand’s most popular heating option because they’re energy-efficient, affordable to run, and double as air conditioners in summer. But while they save you money long-term, they’re not always the cheapest to buy or install.

So how much should you expect to pay in 2025? A standard highwall heat pump installation in NZ typically costs $1,500–$3,500, while ducted systems can range from $6,000–$10,000+ depending on your home.

Since 2015, OneAir has been helping Kiwi homeowners find the right heating and cooling solutions. In this guide, we’ll break down:

• Typical heat pump installation costs in NZ

• Factors that influence price

• Types of heat pump systems available

• Ways to save money on installation

• Long-term benefits and what to expect from a professional installer

Understanding the Basics of Heat Pumps

A heat pump is essentially a smart energy mover. It takes heat from the outside air (yes, even in winter) and transfers it indoors to warm your home. In summer, it works in reverse, removing heat and humidity to keep you cool. This dual function is why heat pumps are considered the most efficient year-round climate control option in NZ homes.

Factors Affecting Heat Pump Installation Cost 

1. Type of Heat Pump

• Highwall units – Most common and affordable, starting from $1,500.

• Floor-mounted units – Great for homes with limited wall space, slightly more expensive.

• Ceiling cassette systems – Installed in the ceiling, offer even airflow, mid-range in price.

• Multi-split systems – More expensive than single-splits due to complex outdoor units.

• Ducted systems – Whole-home coverage, typically $6,000–$10,000+

Pro Tip: Many homeowners assume multi-splits are cheaper, but they usually cost more than installing two single-split systems.

2. Size & Capacity

• Smaller heat pumps (2.5–5kW) are more affordable.

• Larger units (8–10kW) or full ducted systems cost significantly more.

• Factors that influence required size:

  • Room size and ceiling height

  • Insulation levels and airtightness

  • Sun exposure through windows

  • Multi-level layouts that may require multiple units

Example: A small bedroom may only need a 2.5kW unit, while an open-plan living area with high ceilings could require a 7–10kW system.

3. Installation Complexity

• Simple installs (short pipe runs, modern wiring, easy wall access) keep costs down.

• Complex installs (older homes, longer distance between indoor & outdoor units, extra wiring or drilling) increase labour and material costs.

4. Brand & Model

• Premium brands (Mitsubishi Electric, Daikin, Panasonic) often cost more upfront, but may include longer warranties and better energy efficiency.

• Entry-level models are cheaper but may lack advanced features like Wi-Fi control or humidity sensors.

5. Labour Costs

• Vary depending on the installer’s experience and your location.

• In high-demand areas with fewer HVAC companies, labour costs may be higher.

  
  

6. Regional Differences

• Installation is generally more competitive (and sometimes cheaper) in larger cities like Auckland and Wellington.

• In remote areas, costs may be higher due to fewer contractors and additional travel.

Quick Recap:

The main cost drivers are system type, unit size, and installation complexity. A straightforward highwall install may be under $2,000, while a large ducted system can easily exceed $7,000.

Types of Heat Pump Systems Available in New Zealand

Understanding the different types of heat pump systems can help you choose the best option for your home. The most common types include:

• Highwall Heat Pumps: These are New Zealand homes' most popular and cost-effective options. Mounted on the wall, these units are easy to install and are ideal for smaller spaces or individual rooms. Prices start at around $1,500.

• Ducted Heat Pumps: Ducted systems are more comprehensive, providing heating and cooling throughout the entire home via a network of ducts. While these systems offer greater control and efficiency, they come at a higher cost, with installations typically starting around $6,000.

• Floor-Mounted Heat Pumps: These units are installed close to the floor and are ideal for homes with limited wall space. They are often chosen for their discreet appearance and efficient performance.

• Ceiling Cassette Heat Pumps: Installed in the ceiling, these units are perfect for homes with premium wall space. They are more expensive than high-wall units but provide even air distribution throughout the room.

Top Heat Pump Brands in New Zealand's 

When considering heat pump installation, knowing the top brands in the New Zealand market is helpful. These companies are known for their strong online presence, product quality and energy efficiency:

1. Mitsubishi Electric New Zealand

2. Daikin New Zealand

3. Panasonic

4. Fujitsu

These brands offer a wide range of heat pump solutions and are often at the forefront of the industry regarding innovation and customer service.

Regional Differences in Heat Pump Costs

New Zealand’s diverse climate affects both demand and cost:

• Northern regions (Auckland, Bay of Plenty) – More demand for cooling, strong competition keeps prices competitive.

• Southern regions (Wellington, Dunedin) – More demand for heating, ducted systems often chosen, raising average costs.

• Remote areas – Fewer installers, which can mean higher labour and travel costs.

Government Incentives for Heat Pump Installation

The New Zealand government offers various incentives and rebates for heat pump installations to encourage homeowners to adopt energy-efficient solutions. These can significantly reduce the upfront cost of your project. You must check with your local council or energy provider for the latest information on available incentives, as they can change.

Money-Saving Tips for Heat Pump Installation

Installing a heat pump doesn’t have to break the bank. Here are practical ways to reduce your upfront costs while still getting a system that fits your home:

1. Keep the Outdoor Unit Grounded

Wall or roof mounts add extra cost. Whenever possible, place the outdoor unit at ground level to save on installation fees.

2. Minimise Distance Between Units

The shorter the pipe run between your indoor and outdoor unit, the lower the installation cost. A smart placement plan can save hundreds.

3. Ask About Promotions & Rebates

Heat pump brands in NZ frequently run cashback promotions or seasonal discounts. For example, Mitsubishi, Daikin, and Panasonic often offer rebates of up to $500. Ask your installer to check which brands have offers available now.

4. Choose the Right-Sized System

Bigger isn’t always better. An oversized unit costs more upfront and doesn’t run as efficiently in smaller spaces. Work with a qualified installer to size your heat pump correctly.

5. Prioritise Energy Efficiency

While high-efficiency units may cost a little more at installation, they reduce long-term power bills. Look for Energy Star® ratings or high CoPs (Coefficient of Performance).

6. Explore Financing Options

Many installers in NZ offer flexible finance plans, allowing you to spread the cost over 12–24 months instead of paying everything upfront.

Pro Tip: Combine promotions, correct sizing, and efficient placement to save the most on your installation without compromising comfort.

FAQ: Heat Pump Installation Costs in NZ

Q1. How much does it cost to install a heat pump in New Zealand?

Expect to pay $1,500–$3,500 for a highwall unit, and $6,000–$10,000+ for a ducted system.

Q2. Why do prices vary so much?

Type of system, size, complexity of installation, brand, and region all influence cost.

Q3. Is ducted worth the extra cost?

Yes, if you want whole-home comfort and hidden units. Ducted adds value to your property.

Q4. Can I save money by choosing a smaller system?

No — undersized units run constantly, increasing power bills and reducing lifespan.

Q5. Are there government rebates available?

Yes. Councils and energy providers often offer subsidies or cashback for energy-efficient systems.

Q6. How can I lower my installation cost?

Choose ground placement, minimise unit distance, ask about rebates, and pick the right size system.

Long-Term Cost Benefits of Heat Pumps

• Lower Power Bills – Save money compared to traditional heaters.

• Year-Round Comfort – Heating in winter, cooling in summer.

• Healthier Air – Filters improve indoor air quality.

• Durability – Well-maintained systems last 10–15 years.

Choosing the Right Heat Pump Installer

Your installer makes a big difference in performance and cost savings. Look for:

• Certified, experienced HVAC technicians

• Strong reviews (200+ Google reviews is a good benchmark)

• End-to-end service (consultation, installation, aftercare)

• Clear warranties and maintenance plans

Ready to Install Your Heat Pump?

Installing a heat pump is an investment in comfort, energy savings, and home value. At OneAir, we’ll assess your space, recommend the right system, and provide transparent pricing so you know exactly what to expect.

Call 0800 ONEAIR (663247) or Book Online Today to get started.