“Two ways are subsidising hot water heat pumps through the Warmer Kiwi Homes initiative, and helping homeowners improve energy efficiency through a Ratings Assistance Scheme,’ says Mardon.

Both are recommended in an excellent report by the New Zealand Green Building Council.

“These initiatives would expand the use of hot water heat pumps across the country, modernise heating systems, reducing carbon emissions, and lower energy bills for Kiwi households.

“Hot water heat pumps are among the most efficient technologies available for residential and commercial water heating. By using electricity to transfer heat rather than generate it directly, these systems can reduce energy use by up to 75% compared to traditional electric or gas water heaters.

“Many countries offer incentives to homeowners and landlords to instal hot water heat pumps – but not in in New Zealand.

“Consequently, hardly any New Zealand homes and businesses have hot water heat pumps, with most using less efficient electric element or gas water heaters. Hot water heat pumps are more efficient but they’re also - currently - more expensive, so their installation needs to be encouraged.

“To make heat pumps and hot water heat pumps more accessible, subsidies should be offered to both homes and businesses—mirroring successful programmes in Canada, the US, Europe, and Victoria, Australia. These incentives could be delivered through the Warmer Kiwi Homes programme,” Mardon says.

“Another method is the proposed Ratepayer Assistance Scheme (RAS), which allows ratepayers to borrow money to instal energy efficient appliances such as hot water heat pumps, with repayments made over time through rates bills. A RAS is under development but requires enabling legislation.

“Together, these measures would represent a transformative shift in how New Zealand heats its homes and buildings—ushering in a cleaner, more resilient energy future."