Natural gas prices are up in NZ. Should you go fully electric at home?

Natural gas prices have climbed again in New Zealand. For many households that means higher running costs for hot water, space heating and cooking.

If you’re wondering whether to stick with gas or switch to fully electric, here’s a clear guide from Betta Plumbing & Gas to help you weigh it up. The nitty gritty

• Gas has become more expensive across sectors in recent quarters, putting pressure on household energy bills.

• New Zealand’s electricity is already largely renewable - typically between 80 and 88 percent depending on rainfall and hydro conditions which makes going electric a strong long-term choice for emissions and cost stability.

• Heat pumps for space and water heating are extremely efficient, often delivering 2.5 – 4 units of heat for every unit of electricity used.

• Indoor air quality matters: research links gas cooking and other indoor combustion to higher levels of nitrogen dioxide and associated health impacts.

• There are grants and even low-interest green loans available to help fund your switch.

Where the money goes: running costs and bill stability

Gas

• Gas prices have risen sharply in the last year, largely due to supply constraints and inflationary pressures.

• Unlike electricity, gas pricing isn’t as transparent - most prices are privately contracted, so customers can see big jumps when suppliers adjust rates.

Electricity

• While electricity prices also fluctuate, New Zealand’s grid is mostly renewable and getting greener every year. That makes future pricing more stable compared with fossil fuels.

What this means for your wallet

• If you rely on gas for both hot water and heating, you’re fully exposed to gas price hikes.

• Heat pumps, on the other hand, can reduce total household energy use significantly — and with off-peak or night rates, they can be very cost-effective to run.

  
  

Comfort and performance: heat pumps vs gas

Space heating

Modern heat pumps deliver powerful, consistent warmth even in cooler climates when they’re sized correctly for your space. They’re quiet, efficient and easy to control.

Hot water

Heat pump water heaters are a great alternative to gas continuous-flow systems. They use a fraction of the energy of a standard electric cylinder and can save hundreds of dollars per year on running costs.

Cooking

Induction cooktops are fast, precise and safe. They heat your pan directly rather than the air around it and don’t release combustion gases indoors.If you’re keeping a gas hob for now, always run a good ducted rangehood when cooking to maintain air quality.

Emissions and future-proofing

• Going electric reduces your home’s carbon footprint because our national electricity supply is already mostly renewable.

• Policy changes come and go, but the long-term trend is clear - New Zealand is moving toward cleaner, renewable energy sources.

• By switching now, you’re aligning your home with the direction of the country’s energy future and avoiding further exposure to gas price volatility.

  
  

Upfront costs and grants

Before you start, check whether your household qualifies for a Warmer Kiwi Homes grant for insulation and efficient fixed heating.Eligible homeowners can receive significant subsidies on heat-pump installations and insulation - two key steps in cutting gas use and improving comfort.

Smart funding: green-loan offers from major banks

A big reason many homeowners hesitate to switch from gas to electric is the upfront cost. Fortunately, most of New Zealand’s main banks now offer green-loan top-ups - low-interest financing specifically for energy-efficient home upgrades.

BNZ is currently offering great rates to get your home more healthy.

Here’s how they work:

• BNZ offers a Green Home Loan Top-Up of up to $80,000 at 1% p.a. fixed for three years for eligible upgrades such as heat-pump systems, insulation, EV chargers and more.

• ASB has a Better Homes Top-Up also at 1% p.a. for three years, available for things like efficient heating, water heating, solar panels and electric vehicles.

• Other banks, including Westpac and ANZ, have similar sustainability or energy-efficiency packages.

  
  

Things to know:

• The low rate usually applies only for a fixed three-year term, after which the loan reverts to a standard home-loan rate.

• You’ll need to be an existing mortgage customer or switch your loan to that bank.

• The upgrade must meet the bank’s eligibility criteria, such as proof of purchase or installation by a qualified professional.

  
  

Why it matters: Green loans remove a huge barrier for families looking to electrify their homes. Borrowing at 1% for three years makes it far more affordable to install a heat pump, upgrade insulation or replace a gas hot-water system.Because your running costs are likely to drop, the savings can often offset much of the repayment making it a practical, low-risk path toward energy independence.

When staying on gas could still make sense

If your gas appliances are fairly new and efficient, or your budget is tight right now, a staged approach might make more sense. Start by electrifying your biggest energy user - often the hot-water system. From there, you can plan a gradual transition as your appliances reach end-of-life.

A practical roadmap from Betta Plumbing & Gas

1. Check your bills- Review the last year of gas and power bills to understand your usage.

2. Tighten up your home - Insulate and seal drafts before upgrading your heating system.

3. Electrify the biggest load first - Replace your gas hot-water system with a heat-pump water heater.

4. Check green-loan eligibility - Talk to your bank about a 1% green loan top-up for energy-efficient upgrades. It’s a low-cost way to fund your switch.

5. Move cooking to induction - Safer, cleaner, faster and no indoor combustion gases.

6. Stay safe and compliant - Our qualified gasfitters handle all decommissioning, capping and certification so your home remains up to code.

   
   

So, natural gas prices are up in NZ. Should you go fully electric at home?

If your goal is to reduce running costs, lower emissions and improve indoor air quality, going fully electric is the smart move.Rising gas prices and New Zealand’s renewable electricity supply make the numbers stack up - especially when you factor in grants and 1% green loans.

For many households, a staged approach works best: start with hot water, move to space heating, and finish with the kitchen.Each step saves money, cuts emissions and makes your home more comfortable.

Ready to make a plan?

Betta Plumbing & Gas can help you compare your gas vs electric options, check green-loan eligibility, and provide clear pricing on efficient heat-pump water heaters and heating systems.

We’ll handle the install, paperwork and compliance and you’ll enjoy a warmer, cleaner, lower-cost home for years to come. GIve us a call on 022 471 9055.