300,000 more homes eligible for insulation grants

Tuesday, 5 August 2025

Warmer, healthier and more efficient homes are on the way for thousands more people following changes to the Government’s Warmer Kiwi Homes initiative.

The scheme provides insulation grants of up to 90% for ceiling and underfloor insulation and energy-efficient heaters for low-income homeowners in designated low-income areas (deciles seven to 10).

Now, the scheme has been expanded to make 50% insulation grants available to households in decile five and six zones, the Government announced on Tuesday.

Energy Minister Simon Watts said up to 300,000 additional households who had not previously qualified would be potentially eligible for the grants, while support for those who needed it most would be maintained.

It was about helping more people to live in homes that were easier to heat, and more affordable to run, and helping household households achieve long-term cost savings without sacrificing comfort, he said.

“Insulation is a valuable investment as it means lower power bills and fewer cold-related illnesses. Energy Efficiency and Conservation Authority data shows a well-insulated house can save you around $340 every year.

“It improves the quality of our housing stock overall, reduces emissions by saving on electricity use, and will also improve educational outcomes and productivity by reducing time off school and work due to illness.”

An independent evaluation of the scheme by public policy consultancy Motu found households in the study reported reduced respiratory illness and medical visits, saving an estimated $15 million a year in avoided health costs.

While the changes were a key part of the Government's work programme to tackle cost of living issues and energy hardship, there would be a significant flow through of benefits to business, the minister told The Post.

“That’s particularly the case for those who work in the energy service sector. The programme directly employs just over 700 people in the various trades involved in insulation, and we would expect that to expand.

“About 85% of the products used in the retrofits are manufactured here in New Zealand, so the expanded programme will also be a boost for Kiwi businesses involved with energy efficiency products.”

Watts, who announced the changes on a site visit to insulation company InZone Industries, said the broader benefits of that would flow through to the wider economy, and would include job creation, including in the regions.

“And we are doing it without putting extra money into the programme. We are making existing funding go further.”

The minister also acknowledged the scheme would not be possible without the “multitude” of third party funders around the country that worked with the Government on the programme.

Those funders had contributed over $100 million over the 15 years since the scheme was started in 2009, and in that time the programme had delivered over 500,000 heating and insulation retrofits, he said.

But there have been some cuts in the revised scheme: Households in decile seven areas now had access to 50% grants rather than 80% grants, and heating grants were no longer available in decile eight areas.

Households with a community services or Supergold card would not be affected by the cuts.

EECA general manager delivery and partnerships Richard Briggs said while the eligibility criteria for the scheme had been expanded, the focus was still on deciles eight to 10.

Those areas were still the priority, but as the scheme continued and more homes were retrofitted, there were fewer houses eligible for it, he said.

“We don’t believe that by broadening the programme we're going to do fewer houses in those high need deciles, it just gives an opportunity for the money to go further - although the subsidies being offered are less as you go down the deciles.”

Targeting decile areas allowed them to avoid a scatter-gun approach and cost-effectively reach those with the highest need, he said.