---
title: "Heat Pump Hydronic Heating Cost: Switching from Gas in Melbourne"
date: 2024-12-20T15:26:00+11:00
author: Geoff Pennington
canonical_url: "https://sogeo.com.au/blog/how-much-does-it-cost-to-switch-from-gas-to-hydronic-heat-pumps"
section: Pages
---
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# 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.
## 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.
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, with most [**air source heat pumps**](https://sogeo.com.au/air-source-heat-pumps) operating at a coefficient of performance (COP) of 3.5 to 4.0. This means for every 1 kW of electricity used, the system delivers 3.5 to 4 kW of heating energy.
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. [Victorian Energy Upgrades and Solar Victoria rebates](/blog/victoria-heat-pump-and-hot-water-rebates-2026-guide) take a meaningful chunk off the day-one 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.
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![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)
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