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For many households in Christchurch, the sight of the LPG bottle is a familiar one—it’s the backbone of your water heating and potentially your indoor heating, prized for its convenience and powerful output.
However, the future of your LPG supply is at a critical and costly crossroad. Unlike piped natural gas, LPG is often a more expensive fuel source per unit of heat, and prices are being driven higher by a "perfect storm" of international sourcing costs and increasing domestic carbon charges.
This precarious combination is forcing a significant rethink across Canterbury homes, sparking an accelerating shift toward electrification with heat pumps - especially in a city known for its cold, dry winters.
The instability around the cost of Liquefied Petroleum Gas (LPG) is rooted in international markets and domestic policy:
The impact of this uncertainty is most tangible in the growing movement to replace gas-fired appliances and processes with electric equivalents. Recent research suggests that a majority of the country’s roughly ten million fossil fuel-consuming machines could be feasibly replaced with electric alternatives.
For the average household, the transition is becoming an increasingly attractive financial proposition. While the upfront cost of electric appliances like heat pumps, induction cooktops, and hot water heat pumps can be higher, energy savings over the lifetime of the product often make them cheaper than their gas counterparts. Analysis by the Energy Efficiency & Conservation Authority (EECA) suggests that an average home currently using gas appliances and a petrol vehicle could save between $2000 - $7000 by fully electrifying heating and transport - a shift many see as the 'electrification tipping point'.
This financial logic is beginning to resonate:
For businesses, the transition is often more complex and high-stakes. Many gas-reliant industries, especially those requiring high-temperature process heat, face significant hurdles and high conversion costs. However, the dwindling supply and price volatility of wholesale gas are creating urgency, with major industrial players beginning to make the expensive shift to electric or biomass boilers.
While the long-term, large-scale future is electric, gas—specifically LPG (bottled gas) or small, high-efficiency natural gas systems—still holds specific advantages for certain users.
For off-grid and remote properties, gas can provide a simpler, more resilient solution. Running a high-demand appliance like a hot water system on electricity can require a significantly larger, more expensive solar and battery setup. A continuous-flow gas hot water heater, which only heats water on demand, consumes minimal electricity to run its controls, making it a highly effective choice for homes prioritising energy independence and a smaller electrical footprint.
Furthermore, in smaller homes or those with low water usage, the high efficiency of an instantaneous gas hot water system can outcompete even an electric heat pump in terms of capital and installation cost, especially where limited usage means the payback period on a more expensive electric system is very long. Gas appliances, therefore, remain a practical, space-saving, and cost-effective option for niche applications where efficiency in a distributed, on-demand scenario is key, rather than total grid reliance.
Ultimately, the 'unsure future' of gas is more than an energy forecast; it is a profound structural change to New Zealand's energy landscape. Driven by the twin forces of resource depletion and a firm climate mandate, the move from gas to clean, renewable electricity is accelerating. While the specific timeline remains fluid, the question is no longer if New Zealand will become a predominantly electric nation, but rather how quickly it can manage the transition—and where highly efficient gas will find its lasting, practical niche.
Final Thoughts & Next Steps
The message is clear: while gas offers unmatched on-demand hot water and remains practical for homes with limited space or complex electrical needs, the future overwhelmingly points towards electrification. The rising instability of gas prices, dwindling domestic supply, and the superior efficiency and lower running costs of hot water heat pumps make the electric transition a smarter, more financially secure, and environmentally responsible choice for most New Zealand households aiming to future-proof their homes and maximise savings.
Ready to explore the best options for your home? Don't wait for your old system to fail! Contact us today for a free, no-obligation assessment. We'll help you analyse the numbers and select a reliable, efficient hot water solution perfectly suited to your family's requirements.
