Gas vs electric hot water in NZ: what's changed in 2026
For years, gas hot water was a popular choice in New Zealand homes. That's changing fast. The reason isn't a ban: the proposed ban on new gas connections never went ahead. The reason is simply that New Zealand is running out of gas.
New Zealand's gas supply is shrinking
According to BRANZ (June 2026):
- natural gas production has dropped by 35% in the last two years alone, and is expected to halve again by 2035
- the Maui gas field is expected to finish production at the end of 2026, removing about 20% of supply
- a further seven gas fields are expected to close in the years to 2036
- Vector, Auckland's gas network, forecasts no new residential gas customers from 2029
Around 287,000 homes still use natural gas.
Gas bills are going up
Consumer NZ reported average increases of 10% for households on piped gas in 2025. The costs of running the pipes are largely fixed, so as customers leave, those who stay pay more. The Commerce Commission expects pipeline charges to add 1–3% a year on top of inflation from 1 October 2026. For a typical household that's about $5 a month more in the first year.
Electric hot water doesn't have to be expensive
A standard electric cylinder turns one unit of electricity into one unit of heat. Heat pump and solar thermodynamic systems are far more efficient, because they collect most of their heat from the air and the sun. BRANZ says heat pumps can be up to four times more efficient than gas. An Energie solar thermodynamic system uses about 0.5 kWh of electricity per person per day to heat water. See our worked savings example for what that means for a typical power bill.
New Zealand's electricity is also mostly renewable, reaching a record 92% in the June 2026 quarter. Switching from gas to efficient electric hot water cuts your emissions as well as your bills.
What switching involves
- Consent: Replacing a gas water heater with a heat pump or solar thermodynamic system usually doesn't need a building consent, as long as an authorised plumber does the work. See our building consent guide.
- Placement: The solar thermodynamic panel doesn't have to go on the roof or face exactly north. It can be mounted on a wall or on the ground. See our FAQs.
- Your gas connection: If hot water was your only use for gas, you can have the connection removed and stop paying daily gas charges.
Get a quote
Contact us or call 03 540 3003 for a free estimate on replacing your gas hot water. See our domestic and commercial systems.