Both heat the same way once the water’s hot, through radiators or in-slab pipes — so the real decision is about the heat source. A gas boiler is generally the lower upfront cost and suits homes already on the gas network wanting a straightforward changeover. A heat pump costs more to install but runs on electricity, pairs well with solar, and can pay that difference back in efficiency (up to a Coefficient of Performance of 4.0, meaning every unit of electricity in produces up to four units of heat). Which one actually makes sense for your home depends on whether you’re building new, retrofitting, and whether cutting ties with gas matters to you.
In This Article
- Two ways to heat the same hydronic system
- What a gas boiler system actually costs and involves
- What a heat pump system actually costs and involves
- Where the real trade-off sits
- Getting the right system for your home
Two ways to heat the same hydronic system
Hydronic heating always works the same way at the delivery end: water is heated, then circulated through radiators or in-floor pipes to warm the room. What changes is how that water gets hot in the first place. Precision installs both gas boiler and heat pump hydronic heating systems across Geelong, and for more on how the delivery side of the system actually works, see our guide to how hydronic heating works. The two heat sources aren’t just a pricing difference, they come with genuinely different trade-offs.
What a gas boiler system actually costs and involves
A high-efficiency condensing gas boiler heats the water directly using gas, then sends it out to radiator panels or an in-slab loop. Fixed-price packages for a gas boiler system start from $9,900 excluding GST for a radiator panel setup suited to a 3-bedroom, 1-living-area home, up to $15,000 for a larger 5-bedroom, 2-living-area home. An in-slab gas boiler system runs from $13,300 up to $18,900 for the same size range. All packages include installation labour, a 6-year warranty, ESV and plumbing certification, and a free service within the first 12 months. If you already have a working gas boiler system and just need the unit itself replaced, a changeover starts from $4,500 plus GST.
What a heat pump system actually costs and involves
An air-to-water heat pump doesn’t burn gas at all — it extracts heat from the outside air using electricity, the same basic principle as a reverse-cycle air conditioner. Modern units can reach a Coefficient of Performance (COP) of up to 4.0, meaning for every 1 unit of electricity used, up to 4 units of heat come out the other end. Fixed-price heat pump packages start from $16,500 excluding GST for a radiator panel setup (3-bedroom, 1-living-area), up to $29,970 for a larger home. In-slab heat pump systems run from $21,000 up to $37,200. The same inclusions apply: installation labour, 6-year warranty, certification, and a free first-year service. Because heat pump systems run entirely on electricity, they can be paired with home solar, and concrete in-slab systems can act as a thermal battery, storing heat generated during the day for release overnight without drawing extra power from the grid.
Where the real trade-off sits
The upfront cost difference is real: for a comparable home size, a heat pump package costs roughly $5,000 to $18,000 more than the equivalent gas boiler package, depending on the size and configuration. What you get for that difference is a system that runs on electricity rather than gas, can be eligible for Victorian government rebates, and can achieve high efficiency when paired with solar or run during off-peak periods. If you’re building new and don’t have a strong reason to stay on gas, or if you’re specifically trying to reduce or remove gas from your home, the heat pump’s running-cost and rebate potential can close that gap over time. If you’re retrofitting an existing gas-connected home and want the lower upfront cost with a straightforward changeover, the boiler option remains a genuinely solid choice, not a compromise.
Getting the right system for your home
Because the right answer depends on your home’s size, whether you’re on gas already, your appetite for the higher upfront cost, and how much you value running on electricity versus gas, this is worth a proper conversation rather than picking off a price list. Our team can walk through both options against your specific property.
Frequently Asked Questions (FAQs)
Is a heat pump always cheaper to run than a gas boiler for hydronic heating?
Not automatically, it depends on your electricity plan, whether you’re pairing it with solar, and your local gas price. What’s consistent is the potential efficiency: a COP of up to 4.0 means a well-run heat pump can produce more heat per dollar of energy input than a boiler burning gas directly, but the actual bill still comes down to your specific rates and usage.
Can I switch an existing gas boiler hydronic system to a heat pump later?
Often yes. Retrofitting an air-to-water heat pump to an existing radiator or in-slab network is one of the services we offer, since it reuses the existing pipework and just replaces the heat source. Whether it’s straightforward for your specific setup depends on the existing system’s design, which is worth a site assessment.
Weighing up a gas boiler against a heat pump for hydronic heating in your Geelong home? Call Precision on 03 5221 0052 for a fixed-price quote on both options so you can compare them properly.
