Dunedin winters are long, frosty and damp, and many of the city’s villas and bungalows were built long before insulation was normal. Heat pumps in Dunedin are the cheapest way to heat most homes, but people want straight answers first: what it costs to run, what it costs to install, what size you need and whether a grant can pay for it. This guide answers all four, with a calculator built for Dunedin homes.
Quick answers
- Running cost: roughly 10 to 45 cents an hour for a typical Dunedin room, or about $10 to $100 a month in winter, depending mostly on room size and insulation.
- Installation: local installers advertise single-room heat pumps from about $2,950 to $3,950 installed, including GST, for a standard “back-to-back” job.
- Grants: Warmer Kiwi Homes can pay up to 90% of an approved heat pump, capped at $3,450 including GST, for eligible owner-occupiers. Insulation has to come first.
- Insulation first: it lowers every running cost below and is required before the heat pump grant.
In this guide
- Heat pump calculator for Dunedin homes
- What a heat pump costs to run in Dunedin
- What it costs to buy and install
- What size heat pump you need
- Why insulation comes first
- Grants and help in Dunedin in 2026
- If you rent
- How to choose an installer
- Three Dunedin heat pump companies: a marketing look
- Common questions
Heat pump calculator for Dunedin homes
Enter your room and how you use it. The calculator suggests a heat pump size and estimates what it will cost to run in a Dunedin winter. It is a rule-of-thumb estimate, not a site assessment, but it gives you real numbers to compare with quotes.
Your room, your winter
Change any field and the results update instantly.
Assumptions: heating need of 120 to 180 W per m² for Dunedin, adjusted for ceiling height; the heat pump runs at about half its full output once the room is warm; winter efficiency (COP) of 3. Check the price per kWh on your power bill. Estimates only, not a quote.
How the calculator works
A heat pump moves heat rather than making it. Its efficiency is shown as a COP (coefficient of performance): a COP of 3 means 1 kWh of electricity delivers about 3 kWh of heat. On frosty Dunedin mornings the COP falls, so we use 3 as a conservative winter figure, even though many new models are rated higher.
The suggested size covers the room on a cold day: about 120 W per square metre in a well-insulated room, 150 W with some insulation and 180 W with little or none, scaled up for high villa ceilings. Once the room is warm, the heat pump usually runs well below full power, so the running cost assumes an average of half the room's full heating need.
Running cost per hour = heat needed × 0.5 ÷ COP × your price per kWh. The default power price of 38 cents per kWh sits between typical Dunedin unit rates and the government's survey average for Dunedin of about 42 cents per kWh in May 2026, which also includes daily fixed charges. Change it to the unit rate on your bill.
What a heat pump costs to run in Dunedin
Here are five typical Dunedin rooms, worked out with the calculator above at 38 cents per kWh. The biggest difference between the cheapest and the dearest is not the brand of heat pump. It is insulation and ceiling height.
| Room | Suggested size | Per hour | Per winter month |
|---|---|---|---|
| Bedroom, 12 m², insulated, 4 hours a day | 2.5 kW | about 9c | about $11 |
| Lounge, 25 m², insulated, 6 hours a day | 3.2 kW | about 19c | about $34 |
| Lounge, 25 m², poorly insulated, 6 hours a day | 5 kW | about 29c | about $51 |
| Villa lounge, 30 m², 3 m ceilings, poorly insulated, 6 hours a day | 7 kW | about 43c | about $77 |
| Open-plan living, 45 m², some insulation, 8 hours a day | 7 kW | about 43c | about $103 |
These estimates sit inside the range a Dunedin installer gives on its own running-cost page, $40 to $120 a month at the peak of winter, which Google's AI quotes when people ask this question.
Five ways to cut the bill
- Set it to 18 to 21°C. Every degree higher adds roughly 5 to 10% to the running cost.
- Use the timer to warm the room before you get up or come home, rather than blasting it on high when you walk in.
- Close doors to rooms you are not heating, and draw thermal curtains at dusk.
- Clean the filters every few weeks in winter. Clogged filters make the unit work harder.
- Check your power plan on Powerswitch. Many plans have cheaper night or off-peak rates.
Read more: why Dunedin costs differ from national averages
- Longer heating season. Many Dunedin homes need heating from May to September and on cold evenings outside it, longer than in most North Island cities.
- Frost and defrost. On frosty mornings the outdoor unit occasionally pauses to clear ice from its coil. That uses a little extra power and is normal.
- Warm-up versus keeping warm. Heating a cold room from scratch takes the most power. Once it reaches the set temperature, an inverter heat pump slows down and costs much less per hour.
- Older houses. Villas and bungalows with high ceilings, single glazing and draughty floors lose heat fast. Draught-stopping and insulation can cut running costs more than any choice of heat pump.
Power prices have risen sharply in recent years. Canstar reported Dunedin's average cost per kWh rising from about 35.5c in February 2025 to 39.6c in February 2026. That makes efficient heating and good insulation worth more every year.
What it costs to buy and install
For one room with a high-wall heat pump, Dunedin prices usually land between about $2,300 and $4,000 installed. One local installer publishes its prices: $2,950 for a small 3.2 kW heating model, $3,750 for a 6.5 kW model and $3,950 for a floor console, all including GST and standard installation, when we checked in October 2026.
| System | Typical installed price | Good for |
|---|---|---|
| Small high-wall (2.5 to 3.5 kW) | about $2,300 to $3,000 | Bedrooms, studies, small lounges |
| Medium to large high-wall (5 to 8 kW) | about $3,000 to $4,500 | Lounges and open-plan living |
| Floor console | about $3,500 to $4,500 | Rooms with no wall space, villas with high windows |
| Multi-room or ducted systems | from about $5,000 to $20,000+ | Whole-house heating |
Read more: what pushes the price up, and what to ask in a quote
Advertised prices usually assume a "back-to-back" installation: the indoor unit on an outside wall, with the outdoor unit directly behind it. Costs rise with longer pipe runs, brick or concrete walls, upstairs installs, awkward roof lines and any electrical work needed at the switchboard.
- Is the model's heating capacity (not cooling) right for the room?
- Does the quote include all pipework, brackets, electrical work and GST?
- Where will the outdoor unit go, and will frost or drainage be a problem there?
- How long is the warranty, and is the installer accredited by the brand? Some brands extend the warranty for accredited installers.
- Who services it, and what does a service cost?
- Can you pay over time? Some installers offer finance, and some banks offer low or no-interest loans for insulation and heating.
What size heat pump you need
Too small and it struggles on frosty mornings; too big and it cycles on and off and wastes power. As a rough Dunedin guide: a well-insulated 25 m² lounge needs about 3 to 4 kW of heating, a poorly insulated one about 5 kW, and a villa lounge with 3-metre ceilings 6 to 7 kW. The calculator above does this for your room.
Read more: sizing tips for Dunedin homes
- Look at the heating figure. Brochures list heating and cooling capacity. In Dunedin, the heating figure matters.
- Ask about low-temperature performance. Some models keep more of their output at sub-zero outdoor temperatures. That matters on Dunedin's coldest mornings.
- Count the volume, not just the floor. Villa ceilings of 3 metres or more mean a quarter more air to heat than a modern room of the same size.
- Placement matters. A unit that blows warm air across the room into a hallway heats the hallway. A good installer will check where the heat needs to go.
- Get a site visit. A proper heat-loss check by the installer beats any calculator, including ours.
Why insulation comes first
A heat pump in an uninsulated room is heating the ceiling space and the ground under the floor. Ceiling and underfloor insulation keep that heat in the room, so a smaller heat pump does the job and costs less to run. In the table above, insulation alone changes the same 25 m² lounge from about $51 to about $34 a month.
It is also the rule for grants: Warmer Kiwi Homes only funds a heat pump in homes that already have ceiling and underfloor insulation to the required standard, and it can fund that insulation first.
Read more: insulation priorities for older Dunedin homes
- Ceiling insulation first. Heat rises, and the ceiling is usually where most heat is lost.
- Underfloor insulation next, especially in raised villas and bungalows with cold air under the floor.
- A ground moisture barrier under the house if the ground is damp. A dry house is easier and cheaper to heat.
- Draught-stopping around doors, windows and unused fireplaces. Cheap, quick and effective.
- Curtains and glazing last. Thermal curtains help a lot for little money; double glazing helps more but costs much more.
Grants and help in Dunedin in 2026
Three sources of help are worth checking, in this order: the government's Warmer Kiwi Homes grants, a local top-up from the Cosy Homes Trust, and the city council's Warm Dunedin rates scheme.
| Help | What it covers | Who it is for |
|---|---|---|
| Warmer Kiwi Homes (EECA) | 50 to 90% of ceiling and underfloor insulation; up to 90% of an approved high-wall heat pump, capped at $3,450 including GST | Owner-occupiers of homes built before 2008, with a Community Services Card or SuperGold Combo Card, or living in an eligible lower-income area |
| Cosy Homes Trust (Otago) | Local top-ups that can make Warmer Kiwi Homes insulation free for qualifying Dunedin households, and may help with the heat pump balance | Households eligible for Warmer Kiwi Homes |
| Warm Dunedin (DCC) | A rates advance of up to $5,000 for insulation and clean heating, repaid with interest over 10 years through your rates | Dunedin ratepayers, including landlords, for homes built before 2000. Check with the council whether new applications are open |
What changed in 2026
Since 9 January 2026, Warmer Kiwi Homes no longer accepts new applications for wood or pellet burner grants. If you were planning to replace an old fire with a subsidised burner, a heat pump is now the funded option. Ducted and floor-mounted systems are not funded; the grant is for a high-wall heat pump in the main living area.
Read more: the heat pump grant rules, step by step
- You own the home and live in it as your main residence. Rentals are not covered.
- The home was built before 2008.
- You hold a Community Services Card or SuperGold Combo Card, or your address is in an area EECA funds. The online checker tells you by address.
- The home already has ceiling and underfloor insulation to EECA's standard, or has been assessed as unable to take it.
- There is no working fixed heater in a living area, such as a heat pump, wood or pellet burner, flued gas heater or central heating.
Check your eligibility on the EECA Warmer Kiwi Homes page. The grant is applied through an approved local provider, so it comes off the quote rather than being paid back to you later. For local top-ups, see the Cosy Homes Trust; for the rates scheme, the Dunedin City Council's Warm Dunedin page.
If you rent
Warmer Kiwi Homes does not fund rentals, but tenants are protected by the Healthy Homes Standards. Among other things, landlords must provide fixed heating that can warm the main living room to at least 18°C, plus ceiling and underfloor insulation where it can reasonably be installed. Dunedin has thousands of student flats, so this matters. If your living room cannot get warm, start with Tenancy Services' Healthy Homes guide.
How to choose an installer
Search "heat pump dunedin" and Google shows around twenty local companies, most of them rated 4.5 stars or higher. Stars alone will not decide it. Look for a local team that will visit, explain sizing for your room, put everything in a written quote and service the unit afterwards.
- Recent reviews that mention heat pump installs, not only other work.
- Brand accreditation, which can extend the warranty.
- Warmer Kiwi Homes approval if you are applying for a grant: only approved providers can install funded heat pumps.
- Servicing, so the same people look after it for years.
- Two or three quotes for the same room, so you can compare like with like.
Three Dunedin heat pump companies: a marketing look
We are a marketing agency, so we looked at three visible Dunedin heat pump businesses the way a customer finds them: Google Maps, their websites and how often people search for them by name. Each does something well that other local businesses can learn from, and each has a clear opportunity to grow. None of them are our clients; this is a public snapshot from September and October 2026, written in good faith.
| Company | Google rating | Name searches a month (NZ) |
|---|---|---|
| Davies Heat & Cool | 4.9 from 388 reviews | 100 to 1,000 ("davies heat and cool"), plus 10 to 100 each for two other spellings |
| McClelland Heat Pumps & Refrigeration | 4.7 from 55 reviews | 10 to 100 ("mcclelland refrigeration"), 0 to 10 ("mcclelland heat pumps") |
| Lanark | 5.0 from 46 reviews | 10 to 100 ("lanark dunedin"), 0 to 10 ("lanark heat pumps") |
1. Davies Heat & Cool: the strongest name, saying the least
What works: the most reviews of any heat pump company in Dunedin, the most name searches by far, a paid spot in Maps, and strong facts behind the brand: a 60-day money-back performance guarantee, finance over 6 to 24 months, Daikin specialist dealer status and SiteWise Gold. Their fleet and building are instantly recognisable.
Ideas to grow:
- Lead with the guarantee. A 60-day money-back guarantee is rare and powerful, yet it sits halfway down the home page. Put it in the first screen, the Google profile description and the ads.
- One name everywhere. People search for "Heat and Cool", "Heat n Cool" and "Heat & Cool". The profile, website and domain use different versions. One spelling helps Google and customers connect them.
- Answer the money questions. The home page has no prices, running costs or grant information, the three things Dunedin homeowners search for most. A "from" price and a Warmer Kiwi Homes page would catch that demand.
- Check who bids on the name. Google's Keyword Planner shows advertiser bids on "davies heat and cool", which suggests someone advertises on that name. If it is not Davies, a competitor may be catching their customers.
Biggest opportunity: turn the best reputation in town into content. The trust is already there; the website just needs to say more.
2. McClelland Heat Pumps & Refrigeration: the best content, the fewest reviews
What works: the most useful website of the three. Installed prices on the home page, a "reserve this deal, no payment required" offer, a 6-year warranty as an accredited Fujitsu installer, pages for heritage homes, rentals, Mosgiel and Balclutha, and a running-cost guide that ranks first on Google and is quoted by its AI. Reviews on the website praise personal service from the owner.
Ideas to grow:
- Move the praise to Google. The website shows around a dozen glowing testimonials, but the Google profile has 55 reviews against 388 for the market leader. A review request with every install would close that gap.
- Make "McClelland" mean heat pumps. People search for "mcclelland refrigeration" but almost never "mcclelland heat pumps". The website title still starts with "McClelland Refrigeration". Leading with heat pumps in titles, signage and ads would build that link.
- One phone number. The website and building show 03 477 0088; the Google profile shows a mobile number. Consistent details help customers and Google.
- Finish the price boxes. The specials show "RRP: $" with no figure. Either fill it in or remove it.
Biggest opportunity: reviews. The content already wins on Google; reviews would win in Maps.
3. Lanark: a growing business telling two stories
What works: a perfect 5.0 rating, a sponsored spot in Maps for "heat pump installation", an online appointment link, SiteWise Gold, and reviews that describe exactly what customers want: a site visit, the right unit recommended, a clear estimate and a prompt install. The in-house team covers plumbing, electrical and gas, which is genuinely useful for heat pump work.
Ideas to grow:
- Pick the main story. The profile category is "Bathroom remodeler", the website title is just "Lanark" and its description talks about bathroom renovations, while the ads sell heat pumps. If heat pumps are the growth area, the category, title and description should say so.
- Update the vans. The fleet photos show the older bathrooms website and a different phone number from the Google profile. Vans are free advertising every day.
- Build the link in people's heads. "Lanark dunedin" gets searched; "lanark heat pumps" barely. Heat pump customers who mention the heat pump in their reviews will help Google and readers make the connection.
- Make sure ad clicks land on the heat pump page, ideally with a "from" price, so paid visitors see exactly what they clicked for.
Biggest opportunity: one clear identity. Customers already love the work; the brand just needs to tell one story everywhere.
Common questions
For a typical room, roughly 10 to 45 cents an hour at around 38 cents per kWh. A small, well-insulated bedroom sits at the low end; a large, poorly insulated villa lounge with high ceilings at the high end. Use the calculator on this page for your own room.
Usually not in a poorly insulated home, because heat escapes as fast as it is made. In a well-insulated home, a steady 18 to 21°C with a timer that starts heating before you get up or come home is often the most efficient and comfortable approach. Avoid turning it up high to warm a room quickly.
As a rough guide, a well-insulated 25 m² lounge needs about 3 to 4 kW of heating, a poorly insulated one about 5 kW, and a villa lounge with 3-metre ceilings 6 to 7 kW. Compare the heating capacity, not the cooling figure, and ask the installer for a site visit.
If you own and live in a home built before 2008 and hold a Community Services Card or SuperGold Combo Card, or live in an eligible area, Warmer Kiwi Homes can pay up to 90% of an approved high-wall heat pump, capped at $3,450 including GST. Your home must already have ceiling and underfloor insulation. In Otago, the Cosy Homes Trust may top up the grant. Check eligibility on the EECA website.
Yes. Insulation keeps the heat in, so a smaller heat pump does the job and costs less to run. It is also required for the Warmer Kiwi Homes heat pump grant, and eligible Dunedin households can often get ceiling and underfloor insulation heavily subsidised or free.
More Dunedin guides, part 8 of 9
Our series on Dunedin businesses and how locals find them on Google. See also our main guide to SEO in Dunedin.
- Painters & decorators
- Motels & B&Bs
- Movers & removals
- Plumbers
- Electricians
- Mechanics in Dunedin
- Property managers (coming soon)
- Heat pumps & insulation (you are here)
- Dentists (coming soon)
Run a heating or insulation business in Dunedin?
We will look at your Google profile, your website and what Dunedin homeowners see when they search, the same way we did above, then tell you what to do first. Plain English, no pressure.