The Portugal Context
In Portugal, many homes use one of the following for hot water and/or heating:
- Esquentador: An instantaneous gas water heater (very common in older apartments). Uses piped natural gas or bottled butano.
- Caldeira a gás (gas boiler): A gas-fired boiler providing both hot water and central heating. More common in newer properties and houses.
- Termoacumulador elétrico: An electric water heater (cylinder/immersion). Common in apartments without gas supply.
- Bomba de calor (heat pump): The newer, more efficient alternative. Growing rapidly in popularity.
If you’re an expat considering your options, here’s how they compare.
Head-to-Head Comparison
| Factor | Gas Boiler / Esquentador | Heat Pump |
|---|---|---|
| Efficiency | 85–95% (condensing boiler) | 300–500% (COP 3.0–5.0) |
| Upfront cost (hot water) | €500 – €1,500 | €1,500 – €3,000 |
| Upfront cost (heating + hot water) | €2,000 – €4,000 | €5,000 – €12,000 |
| Annual running cost (3-bed home) | €800 – €1,500 | €300 – €600 |
| Lifespan | 10–15 years | 15–20 years |
| Cooling capability | No | Yes (reversible models) |
| CO² emissions | Moderate to high | Low (zero with solar electricity) |
| Government subsidies | No | Yes (up to €2,500) |
| Gas supply required | Yes (piped or bottled) | No (electricity only) |
| Safety risks | Carbon monoxide, gas leaks | Minimal |
Cost Analysis: 10-Year Comparison
Let’s compare the total cost of ownership over 10 years for a typical 3-bedroom property in Portugal:
Scenario: Hot Water Only
| Cost | Gas Esquentador | AQS Heat Pump |
|---|---|---|
| Equipment + installation | €800 | €2,200 |
| Annual running cost | €450 | €150 |
| Annual maintenance | €100 | €80 |
| Government subsidy | €0 | -€1,000 (typical) |
| 10-year total | €6,300 | €3,500 |
Scenario: Hot Water + Central Heating
| Cost | Gas Boiler | Heat Pump |
|---|---|---|
| Equipment + installation | €3,500 | €8,000 |
| Annual running cost | €1,100 | €400 |
| Annual maintenance | €120 | €120 |
| Government subsidy | €0 | -€2,500 (maximum) |
| 10-year total | €15,700 | €10,700 |
In both scenarios, the heat pump is significantly cheaper over 10 years, despite the higher upfront cost. And if energy prices continue to rise (as they have consistently in Portugal), the savings will be even greater.
Ready to Switch from Gas? Get a Free Quote
We’ll assess your current system and recommend the most cost-effective heat pump replacement. No obligation.
Get Free QuoteEnvironmental Impact
For environmentally conscious expats, the heat pump wins decisively:
- A gas boiler produces approximately 2–3 tonnes of CO² per year for a typical Portuguese home.
- A heat pump produces 0.5–1 tonne of CO² per year (based on Portugal’s current electricity grid mix).
- If paired with solar panels, a heat pump can be effectively carbon-neutral.
- Portugal is phasing out fossil fuel subsidies and incentivising renewable energy — the direction of travel is clear.
When Might Gas Still Be the Better Choice?
We believe in giving honest advice. There are a few scenarios where gas might still make sense:
- Very short-term ownership: If you plan to sell within 2–3 years, the lower upfront cost of replacing an existing gas system may be more practical. However, a heat pump does increase property value.
- Limited electrical capacity: Some very old buildings have limited electrical supply. Upgrading to support a heat pump is usually straightforward, but in rare cases it may be impractical.
- Existing high-quality gas system: If your current gas boiler is less than 5 years old and working well, it may make sense to wait until it needs replacing before switching to a heat pump.
The Bottled Gas Problem
Many Portuguese homes — particularly in rural areas and older apartment buildings — use bottled butano or propano gas. This is significantly more expensive per unit of energy than piped natural gas, and considerably less convenient (hauling heavy gas bottles up apartment stairs is nobody’s idea of fun). For bottled gas users, the case for switching to a heat pump is overwhelming:
- Bottled gas costs approximately €0.10–€0.12 per kWh of heat
- A heat pump costs approximately €0.04–€0.06 per kWh of heat (at Portuguese electricity prices with a COP of 3.5)
- Savings of 50–60% on running costs, plus the convenience of never having to change a gas bottle again
Frequently Asked Questions
Can I replace my esquentador with a heat pump?
Yes. A domestic hot water (AQS) heat pump is a direct replacement for an esquentador. The main difference is that a heat pump has a storage tank (200–300 litres), whereas an esquentador heats water instantaneously. In practice, the stored hot water is more than sufficient for a household, and many people prefer it as there’s always hot water ready.
What happens to my gas contract?
If you switch entirely to a heat pump, you can cancel your gas supply contract, saving the monthly standing charge (typically €5–€15 per month). Your gas pipework can simply be capped and left in place.
Do I need to upgrade my electrical supply?
Most Portuguese homes have a 6.9 kVA electrical supply, which is sufficient for an AQS heat pump. For larger central heating systems, you may need to increase to 10.35 kVA, which costs approximately €50–€150 and is arranged through EDP/E-Redes.