How to Reduce Your Heating Bill in 2026 (Tips from an Industry Expert)

Heating is a big part of household costs for many Kiwis, especially in Central Otago and Southern Lakes, with places like Dunedin and Queenstown. When you own your home, it is important to keep your energy bills in check while keeping everyone in the house comfortable.

For those who have installed hydronic and air-to-water heat pump systems for decades, here are some practical strategies for reducing energy bills. This advice is centred on making homes more efficient, reducing running costs, and keeping the home warm during a long, cold winter.

Understanding Your Current Heating System

Before you can start saving money on heating, it’s important to know what exactly is lurking inside your system. Conventional boilers warm the water that heats your home, and they use gas, oil, or diesel as fuel. Old boilers, again, can be short-cycling, running continuously, or ineffective at maintaining indoor temperatures. This waste is reflected in higher fuel costs.

Heat pumps, on the other hand, extract heat from outdoor air and transfer it to your heating system’s water. Since they move heat rather than generate it, they can produce three to four units of heat for each unit of electricity used. This efficiency can translate to very low operating expenses, especially if the radiators or loops are properly sized for your home.

Any variation in system setup, flow rate, and zoning can affect energy use. Knowing your system’s capabilities and limitations can help you make more informed decisions about upgrades or changes to behaviour.

Upgrade to an Air-to-Water Heat Pump

Upgrading to an air-to-water heat pump is one of the most effective ways to reduce long-term heating bills when replacing an ageing boiler. These systems offer consistent, whole-home heating while being much more efficient than traditional boilers.

While boilers heat water to high temperatures, heat pumps maintain a steady, consistent output. This minimises cold spots, reduces system strain, and conserves energy. A well-designed system heats each room evenly, with no short cycling.

Heat pumps also work well with modern controls. Energy is used only where it is needed, with zoning, timed operation, and temperature monitoring. This control enhances comfort and increases savings. In places like Alexandra, Cromwell, and Queenstown, where we can suffer long, cold winters, this combination of efficiency and control is particularly precious.

For long-term running costs, air-to-water heat pumps also compare well with diesel and oil boilers. While the initial outlay can be higher, the reduction in energy requirements, lower maintenance costs, and longer life make them a cost-effective solution in many cases.

Improve Home Efficiency

Replacing your heating system is not the only way to lower your bills. Some home improvements have a clear impact:

• Insulation: Adequate ceiling, wall, and floor insulation will help retain heat and reduce the load on the system.

• Windows and doors: Double-glazed, draught-proof, and sealed gaps to avoid heat loss.

• Curtains and blinds: Closing them at night or when it’s coldest helps retain heat.

• Air circulation: Do not obstruct the radiators or underfloor heating zones to guarantee that your home is evenly heated.

A high-efficiency heat pump will do you little good if you have a poorly insulated home. A newer system, paired with energy-saving upgrades, maximises cost savings and comfort.

Smart Usage and Controls

Contemporary heat pumps combine smart controls and zoning. Lowering temperatures in unused rooms, programming heating to run only when needed, and ensuring the indoor temperature remains constant reduce energy waste.

Frequently changing the thermostat may increase electricity consumption, as heat pumps operate most efficiently at constant flow temperatures. Smart controls can also enable night setback and temperature scheduling, which can contribute to savings whilst providing comfort.

Homeowners tend to undervalue the small things. Of course, a well-configured heat pump (coupled with good flow control and thermostatic radiator valves) can save a significant amount of money over the course of a season.

Cold-Climate Performance

The South Island of New Zealand, especially in Central Otago, experiences frosty nights and dramatic temperature swings. When designed properly, air-to-water heat pumps can operate efficiently in such cases.

While boilers operate in rapid, high-temperature bursts, heat pumps work continuously to maintain even warmth. They continue to operate efficiently even when outdoor temperatures fall to -5°C or below to keep each room at its optimum temperature.

Improper system design, including incorrect sizing or inadequate flow balancing, can undermine performance. Heat pumps must be properly installed and commissioned if they are to perform adequately in cold climates while keeping running costs under control.

Long-Term Benefits

The advantages of having a heat pump are not limited to short-term financial rewards. Well-installed systems require less maintenance than older fossil-fuel boilers, last longer, and use less fossil fuel.

Air-to-water heat pumps can be used with radiators and underfloor heating for maximum comfort. They ensure consistent comfort, lower monthly energy costs, and the ability to maintain your home’s ideal temperatures.

For new-build or replacement boilers, installing a heat pump now will reduce future energy costs and improve comfort whilst increasing the property's efficiency.

Final Thoughts

You don’t have to sacrifice comfort to reduce your heating bill in 2026. Replace an old boiler with an air-to-water heat pump, enhance insulation, and add interactive controls to warm up year-round, and save on energy.

If you are considering a heat pump installation or replacement for your home, Highlander Heating offers site examination and system design support tailored to your property. Find out more and schedule a consultation with Highlander Heating.

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Our writers like to find the latest trends for the home and garden. We launched the award-winning Seasons in Colour in 2015 and the luxury property and interior decor blog www.alltheprettyhomes.com in 2024 to cover all your interior design, travel and lifestyle inspiration needs. Download our free bathroom renovation guide here.