How to get off gas in NZ: what to replace first, and what it saves

Quick answer: Replace gas appliances as they come due, starting with hot water and heating, because they use the most energy and save the most. Leave cooking until last, then get the gas meter removed, because the daily fixed charge (about $830 a year on Consumer NZ's figures) keeps coming until it's gone. For a home on mains gas, Consumer NZ puts the whole switch at around $1,700 a year in savings.

Why are people getting off gas now?

About one in seven New Zealand homes uses natural gas, according to Consumer NZ's guide to getting off gas. For a lot of them it has been a perfectly good way to heat water and rooms for years. What has changed is the supply.

MBIE's latest figures put New Zealand's gas reserves at 731 petajoules at the start of 2026, down 23% in a year and the lowest in the 20 years they have been recorded. In October the Government picked a preferred provider for a facility to import liquefied natural gas through Port Taranaki, RNZ reported. No contract will be signed before the election, and the aim is to have it running for winter 2028.

Households use only about 5% of the country's gas, Consumer NZ says, so homes are a small customer competing with industry for a shrinking supply. Vector has told Consumer NZ it expects no new household gas connections on its network from 2029. And the fixed part of the bill is going up too: from 1 October 2026, gas networks can raise their connection charges by up to $5 a month.

None of that is a reason to rip out a gas heater that works. It is a good reason to have a plan for what replaces it.

What should you replace first?

Start with the things that use the most gas. Consumer NZ puts hot water and space heating at around 30% each of a household's energy use, and cooking at about 7%. So the order that saves the most is:

1. Hot water and heating, as each one comes due
2. Cooking
3. The meter, which takes the daily charge with it

Here's what each step saves a year, on Consumer NZ's numbers:

• Space heating to a heat pump: $515 a year on mains gas, $1,099 on bottled LPG
• Hot water to a heat pump: $316 a year on mains gas, $716 on bottled LPG
• Gas hob to induction: $20 a year on mains gas, $20 on bottled LPG
• No more gas daily charge: $830 a year (mains gas only)
• Total: about $1,700 a year on mains gas, about $1,835 on bottled LPG

The best time to switch an appliance is when it fails or gets near the end of its life, rather than while it still has years left in it. That moment is closer than many people think: using EECA's figures, Consumer NZ says about 28% of gas califonts, half of gas hot water cylinders and 30% of gas cooktops are already more than 10 years old.

The catch is that a hot water cylinder usually fails without warning, and a cold shower is a bad time to start researching. If yours is getting on, decide now what you would replace it with, so the emergency call is a quick one.

Hot water: what replaces gas?

The usual swap is a heat pump hot water system. Consumer NZ puts an installed hot water heat pump at $7,000 to $10,000, and compares it with a gas califont over 15 years: about $9,200 all up for the heat pump, purchase and running costs included, against about $17,500 for the califont.

A standard electric cylinder is cheaper to buy and dearer to run, but it is a reasonable fallback if the budget is tight or the old one has died and you need hot water tomorrow. We went through the options in gas hot water vs a heat pump.

Heating: what replaces gas?

For most homes, a heat pump. Consumer NZ's 15-year comparison has a heat pump at about $7,800 against about $24,000 for a gas heater. Ducted gas central heating is the expensive one to replace: Consumer NZ puts a conversion at $12,000 to $20,000. If you're weighing a heat pump against plug-in heaters for a smaller room, we compared what each costs to run.

Why leave cooking until last?

Because the hob saves the least. Swapping gas for induction is worth about $20 a year in running costs, on Consumer NZ's figures. Induction cooktops also cost more to buy, at about $2,600 on average against $1,200 for ceramic.

The reason to do it at all is what comes next. As long as one gas appliance is connected, you keep paying the daily charge. The cooktop is usually the last thing standing between a household and an $830 a year saving.

How do you get rid of the daily charge?

The daily fixed charge for gas typically runs $1.70 to $2.80 a day, depending on your retailer and network, Consumer NZ says. At an average of about $2.30 that's around $830 a year, and it's a cost an all-electric home doesn't pay.

This is where people get caught out. The charge can keep coming after the last appliance is gone, because the meter is still there. One household in Consumer NZ's guide found exactly that. Removing their meter was quoted at about $200, and Consumer NZ has seen removal fees run to thousands of dollars in other cases.

So when you're down to your last gas appliance:

• ask your gas retailer what it costs to disconnect and to have the meter removed, before you book anything
• get the answer in writing
• check the next bill to make sure the daily charge has actually stopped

How do you plan it?

Write down each gas appliance in the house, roughly how old it is, and what you would replace it with. A list like that turns a string of urgent decisions into one you work through on your own timeline.

It also helps to look at the upgrades together. On Cogo, about four in ten households who have asked installers for quotes since March asked about more than one upgrade at once, and the most common mix is solar, hot water and heating together. Doing them as one project lets an installer size the solar for what the house will actually use once the gas is gone. We've worked through what going all-electric is worth on a power bill separately.

FAQ

How much does it save to get off gas in NZ?

Around $1,700 a year for a home on mains gas, on Consumer NZ's figures, once hot water, heating and cooking are electric and the daily charge has gone. About $1,835 a year for a home on bottled LPG.

Do I have to pay to remove my gas meter?

Often, yes. Consumer NZ reports one household quoted about $200, and much higher fees in other cases. Ask your retailer for the cost before you book it, and check the daily charge stops afterwards.

Should I replace a gas appliance that still works?

Usually not. Consumer NZ suggests switching when an appliance fails or reaches the end of its life, unless you're renovating anyway. Plan the replacement now so you're ready when it happens.

Is it worth switching a gas hob to induction?

On running costs alone, barely: about $20 a year. It's worth it when it's the last gas appliance, because getting off gas completely removes the daily charge of around $830 a year.

See what going electric would save you

Every house is different. Run your own numbers with Cogo to see what replacing your gas appliances could save, and ask installers for quotes from there.

This article is general information only. It is not financial, energy or product advice. What you save depends on your home, your power plan and how you use energy, so get quotes from qualified installers or licensed dealers and seek independent advice for your own situation.