Heat Pump Hydronic Heating Cost: Switching from Gas in Melbourne
Looking to cut costs and carbon? Discover the real price of switching from gas to hydronic heating with air source heat pumps in Melbourne homes.
Why Switch from Gas to Hydronic Heat Pumps?
Hydronic heating powered by an air source heat pump offers a range of benefits compared to traditional gas boilers. Not only can it significantly lower running costs — in some homes by up to 50% — it also eliminates the need for combustion, meaning no onsite emissions. These systems are quiet, safe, and reliable, and they’re compatible with existing hydronic radiators or underfloor setups. It’s 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
The starting price for a standard gas boiler to heat pump in Melbourne is around $15,000. This typically includes the supply and installation of a high-performance air source heat pump, disconnection and removal of your gas boiler, any necessary pipework modifications, and integration of basic controls.
It’s 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?
There are several factors that 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 will improve control and efficiency.
If you wish to integrate hot water into the hydronic system, expect to add approximately $4,000–$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 up the volume of the tank within 60 minutes, domestic hot water heat pump can take 4-5 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 maximizes 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 operating at a coefficient of performance (COP) of 3.5 to 4.0. This means for every 1kW of electricity used, the system delivers 3.5 to 4kW of heating energy.
System Type | Estimated Annual Cost |
|---|---|
Gas Boiler (ducted) | ~$4,100 |
Hydronic Heat Pump | ~$900–$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% duty cycle. The gas boiler estimate is based on 130 MJ/h at 3.52 cents per MJ, while the heat pump estimate assumes 20–30 kWh/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
Is It Worth It?
For most Melbourne homes, the payback period for switching from gas to a hydronic heat pump is between four and seven years. From that point forward, you continue to save on running costs while benefiting from a more sustainable, low-maintenance heating solution.
As Victoria moves toward full electrification and gas phase-outs, upgrading now helps future-proof your home against policy changes and rising gas tariffs. When combined with solar PV, the cost savings are even more compelling.
SóGeo specialises in upgrading Melbourne homes from gas to electric hydronic heat pump systems. Whether you have existing radiators, underfloor heating, or are building new, our team can deliver a tailored, high-performance solution.
Our Suppliers
