---
title: "Heat Pump Hydronic Heating Cost: Switching from Gas in Melbourne"
date: 2024-12-20T15:26:00+11:00
author: Darren Burch
canonical_url: "https://sogeo.com.au/blog/how-much-does-it-cost-to-switch-from-gas-to-hydronic-heat-pumps"
section: Pages
---
![Stiebel Eltron Heat Pump]()

#  Heat Pump Hydronic Heating Cost: Switching from Gas in Melbourne 

SóGeo designs and installs hydronic heating systems across Melbourne. If you’d like a fixed quote for a boiler-to-heat-pump replacement or a new hydronic install, the next step is a site visit and a heat loss calculation.

 

 

 

 **The short answer.** In Melbourne in 2026, swapping a gas boiler for a hydronic heat pump starts at $15,000 when your existing radiators and pipework stay in place. Putting hydronic heating into a home that has none is a larger job, quoted from the drawings, with in-slab pipework at $70 to $115 per square metre and in-screed at $110 to $160. Running costs land near $900 to $1,350 a year, against about $4,100 on gas.

**Updated September 2026 with current Melbourne market pricing.**

The cost of hydronic heating in Melbourne depends on one question before any other: does your home already have hydronic pipework and radiators? If it does, a SóGeo gas-boiler-to-heat-pump swap that keeps your existing radiators starts at $15,000. If it does not, you are pricing a complete hydronic system, which is a substantially larger project covering pipework, radiators or underfloor circuits, and the heat plant, and it is quoted from drawings after a heat-loss calculation rather than from a rate card.

## How Much Does Hydronic Heating Cost in Melbourne in 2026?

The single biggest factor in your price is whether you are replacing a heat source or installing a whole system. They are different projects with different budgets, and any guide that quotes one number for a family home without saying which project it means is setting you up for a surprise at quote time.

**1. You already have hydronic heating (boiler swap).** Your radiators, pipework and circuits stay. The gas boiler comes out, the heat pump goes in, and the system is recommissioned. SóGeo installs start at $15,000 for a straightforward swap keeping existing radiators. Most run higher with home size, scope, hot water integration and any emitter or insulation upgrades the heat-loss calculation identifies.

**2. You are installing hydronic heating from scratch (complete system).** Now you are buying the full system: pipework to every room, radiators or underfloor circuits, the heat pump plant, controls and commissioning. This is a substantially larger investment than a swap, it scales with the size and construction of your home, and SóGeo quotes it from drawings. You will see market guides quote standard family home figures in the high teens for hydronic heating; read them carefully, because at that price they are generally describing a heat-source upgrade on existing circuits, not a full system installed from nothing. If a published number looks too good for a complete installation, ask the company to put it in a fixed quote.

One more comparison trap: quotes that price the heat pump unit alone against quotes for a complete installed job. A unit-only price still needs plumbing, commissioning, electrical work and compliance added to it. SóGeo quotes are fixed and installed: one number, written against a heat-loss calculation, with nothing left to discover later.

## Hydronic Heating Cost Per Square Metre

These rates apply to complete new systems, not boiler swaps: they are the component rates for getting heat distribution into a home that does not yet have it. Melbourne market guides in 2026 put them at:

Installation method

2026 market rate

In-slab heating (new build, pipes tied to the slab)

$70 to $115 per sqm

In-screed system (thin bed over an existing slab)

$110 to $160 per sqm

Radiator panels (best for existing homes)

$1,200 to $1,800 per panel, installed

Per-square-metre figures are a useful sanity check, but they flatten out the details that actually set your price: heat loss, glazing, insulation, hot water integration and emitter sizing. They also fall as homes get bigger, because the heat pump, controls and hot water plant are fixed costs spread over more floor area.

 

 

  01 

 ![Hydronic In-screed Heating Installation]() 

 

### Why Similar Homes Get Different Quotes

Why do similar homes land at different points in these ranges? Heat loss. A home that loses more heat needs its floor or its radiators to deliver more warmth without resorting to hotter water, because hot water is what drags down a heat pump’s efficiency. On underfloor systems that means tighter pipe spacing: more pipe per square metre puts more warm surface under the room, so the water stays at a low temperature while the room stays warm and the COP stays high. On radiator systems it means more surface area: upgrading to larger panels lets each radiator run at a lower temperature for the same room warmth, which keeps the heat pump in its efficient range. This is why SóGeo designs from a room-by-room heat-loss calculation rather than a rate card. The pipe spacing and the panel sizing are engineered so the system holds its SCOP, not just its setpoint.

 

 

 ## Why Switch from Gas to Hydronic Heat Pumps?

Hydronic heating powered by an [air source heat pump](/air-source-heat-pumps) offers a range of benefits compared to traditional gas boilers. It can lower running costs significantly, in some homes by up to 50 percent. It also eliminates the need for combustion, meaning no onsite emissions. These systems are quiet, safe, and reliable, and they are compatible with existing hydronic radiators or underfloor setups. It is an efficient, future-proof way to heat your home while aligning with Australia’s energy transition.

### [Typical Cost to Replace a Gas Boiler with a Hydronic Heat Pump](/replace-gas-boiler-hydronic-heat-pump)

Installs start at $15,000 for a straightforward boiler-to-heat-pump swap retaining existing radiators. Most installs run higher with home size, scope, hot water integration, emitter sizing, and any radiator or insulation upgrades the heat-loss calculation identifies. Larger or new-build hydronic systems are quoted from drawings. Submit your plans for a design and fixed quote.

**The $6,000 boiler trap.** If your gas boiler has died, you will see quotes of roughly $5,500 to $9,000 to swap it for another gas boiler, depending on the kilowatt rating, with a standard 30kW unit typically landing between $5,500 and $6,500. That is the cheapest day-one number, and it is usually the most expensive decision on the table. It locks you into gas bills that are rising every year, on a fuel Victoria is actively phasing out, with a unit that will need replacing again within its lifetime while gas prices climb. The heat pump swap starts at $15,000 and cuts the running cost by more than half from day one. Over the life of the system, the cheaper boiler is the dearer choice. The full decision framework is in our guide to [repairing, replacing or switching your hydronic boiler](https://sogeo.com.au/blog/hydronic-heating-boilers-repair-replace-or-switch).

It is worth noting that if you are installing a hydronic system for the first time rather than just replacing a gas boiler, costs will be higher due to the addition of pipework, radiators, or underfloor components.

**What Affects the Final Price?**

Several factors influence the final cost of a hydronic heat pump installation. If you already have a functioning hydronic system in place, such as radiators or in-slab underfloor heating that are heat pump ready, the changeover is more straightforward and affordable. Larger homes require more powerful heat pumps and in some cases radiator upgrades. Adding heating zones or smart thermostats can increase the cost but improves control and efficiency.

If you wish to integrate hot water into the hydronic system, expect to add approximately $4,000 to $5,000 for a stainless-steel tank. The hydronic heat pump is far more powerful than any domestic hot water heat pump. This means the hydronic heat pump can heat the volume of the tank within 60 minutes, while a domestic hot water heat pump can take 4 to 5 hours.

Many homeowners also pair their heat pump with solar PV, which can reduce energy bills even further and offer a stronger return on investment. When a hydronic heat pump is powered by rooftop solar, the effective running cost can drop significantly, in some cases close to zero during daylight hours. This combination maximises the efficiency of your investment and enhances energy independence.

### How Do Running Costs Compare to Gas?

Hydronic heat pumps are highly efficient. The Stiebel Eltron units we install reach a coefficient of performance (COP) of up to 5.40 at the standard rating point, which means every 1 kWh of electricity delivers roughly 4 to 5 kWh of heat. Across a full year, a SóGeo install typically returns a SCOP (Seasonal Coefficient of Performance) of 5 or higher, and never less than 4 even on a demanding retrofit, because our heat-loss calculation upsizes radiators where needed to keep flow temperatures down. For context, the market average for [air source heat pump](https://sogeo.com.au/air-source-heat-pumps) installs sits at SCOP 3.0 to 3.5, which we treat as a poor result. The difference is design: correct sizing against the heat-loss calculation, weather-compensation tuning, and proper hydraulic balancing.

System Type

Estimated Annual Cost

Hydronic Gas Boiler

~$4,100

Hydronic Heat Pump

~$900 to $1,350

These figures assume a typical Melbourne home running their heating system for 10 hours per day over a five-month winter period, with a 60 percent duty cycle. The gas boiler estimate is based on 130 MJ/h at 3.52 cents per MJ, while the heat pump estimate assumes 20 to 30 kWh per day at $0.30/kWh.

**How much electricity does a hydronic heat pump use?**  
A typical residential system will consume between **20 to 30 kilowatt-hours (kWh) per day** during the colder months, depending on home size, insulation levels, and heating demand.

While exact savings vary depending on your home and usage, most homeowners can expect to save **over $2,500 per year** on energy costs when switching from gas to a well-designed hydronic heat pump system. These savings can be even greater when combined with solar PV, which can offset daytime energy consumption and push running costs close to zero.

### What are the disadvantages of hydronic heat pumps?

Four engineering considerations SóGeo factors into every hydronic air-source heat pump design, and what good engineering does about each:

- **Upfront cost is real, and the running cost earns it back.** Installs start at $15,000 for a straightforward boiler-to-heat-pump swap retaining existing radiators. Most installs run higher with home size, scope, and upgrades the heat-loss calculation identifies. There is currently no Victorian rebate for the hydronic system itself, so the day-one number is the real number. Once installed, a correctly sized hydronic ASHP runs at roughly half the cost of a gas boiler, and pairs natively with solar PV. The payback is in years, not decades.
- **Hydronic systems are designed to run continuously at low load.** They are not cycled on and off. That is how they achieve their efficiency advantage and deliver an even temperature throughout the home. A correctly designed system holds setpoint with minimal energy. The indoor experience is consistent radiant comfort, not the warm-cool-warm cycles of forced air.
- **SóGeo designs to your building, not a brochure.** Every hydronic ASHP install starts with a heat-loss calculation on your specific home, covering wall construction, glazing, insulation, orientation, and draft paths. If the envelope needs work, we tell you what insulation upgrades change the running-cost picture. Most Melbourne homes, including weatherboards from the 1950s and brick veneers from the 1970s, run hydronic well once the system is sized to the building’s actual heat loss.
- **Heat and cool from one system.** Standard panel radiators heat only. Where cooling is required, SóGeo specifies hydronic underfloor or fan-coil units, both driven by the same heat pump. One integrated hydronic system handles heating and cooling across the year.

## Hydronic vs Ducted Heating: Which Costs More?

A premium ducted reverse-cycle system for a standard Melbourne home runs to roughly $9,000 installed, while a full hydronic radiator system typically starts around $16,000. On the day-one number, ducted wins. On everything after day one, hydronic pulls ahead: radiant warmth with no blown air or dust, silent operation, room-by-room evenness, and running costs that a high-SCOP heat pump keeps far below what most ducted owners pay through a Melbourne winter. Ducted systems also move heat with air, which leaks energy through ducts in the roof space. Hydronic moves heat with water, which carries far more energy per unit volume than air. If you plan to stay in the home for more than a few winters, the hydronic premium is a purchase of comfort and lower bills, not just heating. New to the technology? Our guide to [how hydronic heating works](https://sogeo.com.au/blog/understanding-exactly-how-hydronic-heating-systems-work-the-basics-for-homeowners) covers the basics in plain language.

## What Rebates Apply in 2026?

Here is the straight answer: there is currently no Victorian rebate for hydronic space-heating heat pump systems. The programs you may have read about, the Solar Victoria hot water rebate and Victorian Energy Upgrades discounts, apply to hot water heat pumps, which are a separate measure. If your project includes an eligible hot water upgrade, those programs can apply to that part of the work. Broader rebates for hydronic systems have been discussed for the future, but nothing is active today, and we would rather tell you that plainly than build a quote around money that does not exist. If a program opens, this guide will be updated the week it happens. The current hot water programs are covered in our [Victorian rebates guide](https://sogeo.com.au/blog/victoria-heat-pump-and-hot-water-rebates-2026-guide).

## Four Ways a Hydronic Heat Pump Lowers Your Bills

The saving is not one thing, it is four stacked together.

1. **Efficiency.** A gas boiler tops out near 90% efficiency. A SóGeo hydronic heat pump install typically delivers a SCOP of 5 or higher, so every unit of electricity brings 4 to 5 units of heat into the home.
2. **No gas supply charge.** Once the boiler goes, the daily gas supply charge goes with it, and a fully electric home pairs with rooftop solar so daytime running costs can fall close to zero.
3. **One system, heating and cooling.** The same heat pump can reverse in summer to cool the home through underfloor pipework or fan coils, so there is no separate air conditioning system to buy, run or service.
4. **Less to maintain.** No combustion, no flue and fewer moving parts than a boiler plus a separate cooler, which means fewer service visits over the life of the system.

 

 

  01 

 ![SoGeo Team At Work]() 

 

### Is It Worth It?

SóGeo designs and installs hydronic heating systems across Melbourne. If you’d like a fixed quote for a boiler-to-heat-pump replacement or a new hydronic install, the next step is a site visit and a heat loss calculation.

Every install starts the same way. We come to the property, measure heat loss room by room, walk through your goals for the system, and write a fixed quote against the design. No estimates, no surprises, no pressure.

For a full overview of SóGeo’s hydronic service in Melbourne, see our pillar page on [hydronic heating Melbourne](https://sogeo.com.au/hydronic-heating-cooling). For the next-level read on heat pumps themselves, see our page on [air-source hydronic heat pumps](https://sogeo.com.au/air-source-heat-pumps). For boiler-to-heat-pump retrofits, see our [boiler replacement page](https://sogeo.com.au/replace-gas-boiler-hydronic-heat-pump).

 [Get a fixed quote from SóGeo.](https://sogeo.com.au/contact-us) 

 

  ## Common Cost Questions

  ### How much is hydronic heating in Melbourne?

 ➕ It depends on whether your home already has hydronic circuits. Replacing a gas boiler with a heat pump while keeping your existing radiators starts at $15,000 with SóGeo. Installing a complete hydronic system from scratch, covering pipework, radiators or underfloor circuits and the heat plant, is a substantially larger project quoted from drawings after a heat-loss calculation. Be wary of guides quoting a single family home figure without saying which of those two projects it covers.

   ### Is hydronic heating expensive to run?

 ➕ No. In a well-designed install, a hydronic heat pump runs at roughly half the cost of a gas boiler, and often better. A typical Melbourne home spends around $900 to $1,350 per year on electricity for a heat pump system versus around $4,100 per year running the same hydronic system on a gas boiler at current tariffs. Pair the system with rooftop solar and daytime running costs can drop close to zero.

   ### How long does a hydronic heat pump system last?

 ➕ The system is engineered for 20 or more years of service. Radiators and pipework routinely outlast the heat source: many Melbourne homes are still running panels installed decades ago, which is exactly why a boiler-to-heat-pump swap that keeps the radiators is such good value.

   ### How much does hydronic heating servicing cost?

 ➕ An annual professional service typically costs $250 to $450 in Melbourne and protects both efficiency and warranty. A neglected system loses performance to air and sludge in the circuit; power flushing restores systems that have gone years without attention.

  

 

  

## Our Partners

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