How Much Does It Cost to Switch from Gas to Hydronic Heat Pumps
With gas prices rising and emissions reduction on everyone’s radar, more Melbourne homeowners are considering switching from gas boilers to hydronic heat pump systems. One of the most common questions we’re asked at SóGeo is: “How much does it cost to change over?”
In this guide, we’ll break down the typical cost of replacing your gas boiler with a modern, energy-efficient air source hydronic heat pump — including what’s involved and what affects pricing.
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 retrofit in Melbourne is around $13,000. 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 multiple heating zones or smart thermostats can increase the cost but improve control and efficiency.
If you wish to integrate domestic hot water into the system, expect to add approximately $4,000–$6,000 to the project. 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?
System Type | Annual Average Running Cost (Est.) |
Gas boiler | ~$4,100 |
Hydronic heat pump | ~$2,400 |
These figures assume a typical Melbourne home running their heating system an average of 10 hours per day over a five-month winter period, with a 60% duty cycle. The gas boiler cost is based on an average input of 130 MJ/h at 3.52 cents per MJ. The heat pump estimate assumes a coefficient of performance (COP) of 4 and an electricity rate of $0.30/kWh.
While exact savings vary based on your usage and insulation, most homeowners can expect to save around $1,500 annually on running costs alone.
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.
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