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Government subsidies to replace gas heaters with heat pumps could save $1.5b, NZGBC says
Government subsidies to replace gas heaters with heat pumps could save $1.5b, NZGBC says

RNZ News

time11-08-2025

  • Business
  • RNZ News

Government subsidies to replace gas heaters with heat pumps could save $1.5b, NZGBC says

Photo: 123RF A government subsidy scheme for homeowners to replace gas and inefficient heaters with heat pumps would save the country $1.5 billion a year, the Green Building Council (NZGBC) says. It comes amid a major decline in gas availability across New Zealand, with the council proposing gas in residential homes be phased out to free it up for major industries. A 50-page report dubbed Protecting industry, jobs and household budgets as the gas runs out released by the council on Tuesday outlines eight recommendations to combat the "energy crisis". NZGBC chief executive Andrew Eagles told Morning Report there was a solution to allay a major decline in gas availability. "That's leading to a hollowing out of communities as employers go under, and major losses across the motu," he said. The country's manufacturing sector had endured a difficult period over the past year that saw the closures of Penrose's OFS Mill, Winstone Pulp International's Tangiwai Sawmill and Karioi Pulpmill, and Tokoroa's Kinleith Mill. According to the NZGBC report, households were making progress in the adoption of heat pumps and decreasing purchases of gas hot water systems, but commercial and residential natural gas/LPG consumption was still climbing. It said only minor decreases in commercial and residential use of natural gas over the next decade would occur under existing policies. Feedback from Morning Report listeners challenged the council on the idea, with one person claiming heat pumps were getting more expensive. Another person said they were paying similar winter power costs for solar panels as they were previously paying for gas. Eagles said a wide-spread switch to electric would not only be good for employers, bur would slash the living costs for New Zealanders. Accelerating heat pump adoption would save households alone up to $1.5b a year in reduced electricity and gas bills, the report said. "Heat pumps really help switch over from inefficient resistance heaters so you get a drop-off in electricity use as well," Eagles said. "The electricity grid is under pressure." Most OECD countries were providing some form of energy subsidy or tax incentives, including Australia, UK, France, United States and Canada. Homeowners and businesses were facing volatile energy prices and would save more long-term by electrifying, Eagles said. "If people are connected up to gas they have a standing charge every day that they're paying. That's a real cost that they have to pay, no matter how much gas they use." Eagles said some new home builds were still being connected to gas suppliers. "It's really shocking to us, at a time when we are literally having to decide between whether we have enough gas for our homes, or whether we have enough gas for our industry," "It's heartbreaking. Ruapehu, the largest employer has gone under, 200 jobs are lost because they can't access gas. "And at the same time we have thousands of homes connecting up to a gas network which they probably wont be able to access in 10 years time." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

Green housing advocates celebrate no roll back of insulation standards
Green housing advocates celebrate no roll back of insulation standards

RNZ News

time04-07-2025

  • General
  • RNZ News

Green housing advocates celebrate no roll back of insulation standards

Photo: 123rf Green housing advocates are celebrating the end of plans to lower insulation standards. Green Building Council head Andrew Eagles said the decision to save the standards meant 30,000 additional whānau would be in healthier, warmer homes each year. RNZ revealed last year that building and construction minister Chris Penk wanted to roll back insulation standards that saved a new home an estimated 40 percent on heating. Some builders had told Penk the new standards had forced up insulation costs by $40,000-$50,000 but he later acknowledged independent advice did not back that up. The Ministry for Business Innovation and Employment has announced there will be no roll back of the standards, however it is removing one of the options for meeting the standards, a "blunt tool" called the schedule method that was adding between $2000 and $15,000 per new home build. Builders will now have to calculate the total effect of windows and other design choices on insulation across the whole home and will no longer have the option of meeting the standards by selecting items individually from an approved list. Insulation had also been blamed for overheating, but research again showed that was incorrect. Eagles said Penk should be congratulated for listening to the science. "I'm really proud to say that Certified Builders, Construction Industry Council, ADNZ (Architectural Designers New Zealand), BRANZ (Building Research Association of New Zealand) and others stepped in and said, no you should not be taking out insulation, and it's bad design that is to blame not insulation for overheating," he said. "It's overglazing, lack of shading and other issues are causing that. "Those insulation levels will stay, and the schedule method is gone. "It (the schedule method) meant that many were using more expensive products than they needed to," Eagles said.

Not The Growth We Need: Budget 2025 Delivers Growing Energy Bills And Energy Insecurity
Not The Growth We Need: Budget 2025 Delivers Growing Energy Bills And Energy Insecurity

Scoop

time22-05-2025

  • Business
  • Scoop

Not The Growth We Need: Budget 2025 Delivers Growing Energy Bills And Energy Insecurity

Press Release – NZGBC Investing in a sustainable energy system and energy efficiency would have been a huge win not only because it supports New Zealand households and business to keep electricity bills down, but its the cheapest way of improving supply. On Monday Finance Minister Nicola Willis said the budget is what keeps the lights on in our hospitals and schools. Unfortunately, Budget 2025 leaves us staring at a flickering bulb, the New Zealand Green Building Council says. Just last week Transpower warned New Zealand is at risk of electricity blackouts unless more supply is brought online. 'As Kiwis face sharply rising energy bills, businesses shut down or scale back production due to the energy crisis, and our nation entertains the thought of periods without power in the depths of winter, it defies belief that Budget 2025 fails to deliver adequate investment or action,' says NZGBC chief executive Andrew Eagles. Despite committing at COP26 to a global doubling of energy efficiency and tripling of renewable electricity, the government has cut funding for its own energy champions; the Energy Efficiency and Conservation Authority (EECA), by over $14 million a year – or $56 million over the next four vital years leading to our 2030 climate targets. 'Instead of making progress, Budget 2025 takes us a step backwards – slashing vital funding for efforts to support clean, efficient energy use, and instead supporting a ramping up of fossil fuel exploration,' Budget 2025 sets aside $200 million over four years for co-investment in new gas fields. 'Rather than investing in solutions, this budget aims to subsidise new gas fields at a time when nations around the globe are transitioning away from it. Our neighbours in Australia are even banning new household gas connections and supporting alternative heating solutions, yet our government is actively trying to continue our reliance on fossil fuels.' 'Investing in a sustainable energy system and energy efficiency would have been a huge win – not only because it supports New Zealand households and business to keep electricity bills down, but it's the cheapest way of improving supply.' Scaling up help for homes and businesses to be more energy efficient through switching to electric heating, better insulation, ventilation, smarter design, and storing energy, reduces how much peak energy and gas we use at home. That way, more energy is available for businesses that depend on it to keep working. It's a win for Kiwi's back pockets, energy security, and our businesses. Nothing for Kiwis living in unhealthy, cold homes. While it's great to see further investment in our health system, it remains an ambulance at the bottom of the cliff approach. In-line with decades of inaction, Budget 2025 fails to address the woeful state of New Zealand's homes which are putting huge pressure on the health system. Last year's budget scaled back the hugely successful Warmer Kiwi Homes, this year the trend continues, with no new support for arguably the best cost-to-benefit investment a government could make. 'Our country's health system is struggling, our rates of respiratory illness are shameful, and the state of New Zealand's homes is making thousands of Kiwis sick. A really savvy investment would have been to help ease the burden at the cause.' Where's climate? Finally, there appears to be no support in this year's budget for businesses, households or New Zealand generally to decarbonise, or to address the gaping hole in our Emissions Reduction Plan left by the expected failure of carbon capture and storage initiatives. 'We're in a climate crisis, yet there's nothing in Budget 2025 for our Climate Minister to even issue a press release on. That about sums it up really.'

Not The Growth We Need: Budget 2025 Delivers Growing Energy Bills And Energy Insecurity
Not The Growth We Need: Budget 2025 Delivers Growing Energy Bills And Energy Insecurity

Scoop

time22-05-2025

  • Business
  • Scoop

Not The Growth We Need: Budget 2025 Delivers Growing Energy Bills And Energy Insecurity

On Monday Finance Minister Nicola Willis said the budget is what keeps the lights on in our hospitals and schools. Unfortunately, Budget 2025 leaves us staring at a flickering bulb, the New Zealand Green Building Council says. Just last week Transpower warned New Zealand is at risk of electricity blackouts unless more supply is brought online. 'As Kiwis face sharply rising energy bills, businesses shut down or scale back production due to the energy crisis, and our nation entertains the thought of periods without power in the depths of winter, it defies belief that Budget 2025 fails to deliver adequate investment or action,' says NZGBC chief executive Andrew Eagles. Despite committing at COP26 to a global doubling of energy efficiency and tripling of renewable electricity, the government has cut funding for its own energy champions; the Energy Efficiency and Conservation Authority (EECA), by over $14 million a year – or $56 million over the next four vital years leading to our 2030 climate targets. 'Instead of making progress, Budget 2025 takes us a step backwards – slashing vital funding for efforts to support clean, efficient energy use, and instead supporting a ramping up of fossil fuel exploration,' Budget 2025 sets aside $200 million over four years for co-investment in new gas fields. 'Rather than investing in solutions, this budget aims to subsidise new gas fields at a time when nations around the globe are transitioning away from it. Our neighbours in Australia are even banning new household gas connections and supporting alternative heating solutions, yet our government is actively trying to continue our reliance on fossil fuels.' 'Investing in a sustainable energy system and energy efficiency would have been a huge win – not only because it supports New Zealand households and business to keep electricity bills down, but it's the cheapest way of improving supply.' Scaling up help for homes and businesses to be more energy efficient through switching to electric heating, better insulation, ventilation, smarter design, and storing energy, reduces how much peak energy and gas we use at home. That way, more energy is available for businesses that depend on it to keep working. It's a win for Kiwi's back pockets, energy security, and our businesses. Nothing for Kiwis living in unhealthy, cold homes. While it's great to see further investment in our health system, it remains an ambulance at the bottom of the cliff approach. In-line with decades of inaction, Budget 2025 fails to address the woeful state of New Zealand's homes which are putting huge pressure on the health system. Last year's budget scaled back the hugely successful Warmer Kiwi Homes, this year the trend continues, with no new support for arguably the best cost-to-benefit investment a government could make. 'Our country's health system is struggling, our rates of respiratory illness are shameful, and the state of New Zealand's homes is making thousands of Kiwis sick. A really savvy investment would have been to help ease the burden at the cause.' Where's climate? Finally, there appears to be no support in this year's budget for businesses, households or New Zealand generally to decarbonise, or to address the gaping hole in our Emissions Reduction Plan left by the expected failure of carbon capture and storage initiatives. 'We're in a climate crisis, yet there's nothing in Budget 2025 for our Climate Minister to even issue a press release on. That about sums it up really.'

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