New Insulation Standards Cost-effective And Lower The Cost Of Living

Insulation is a minor investment in new housing which generates significant cost of living savings for occupants, saves the government healthcare costs, and improves economic productivity, says Insulation Association of New Zealand (IAONZ) Executive Officer Richard Arkinstall.

“The new H1 insulation standards represent a positive first step towards a healthier, more energy-efficient New Zealand. By focusing on long-term benefits and choosing the right compliance pathway, we can ensure a sustainable future for the construction industry.

“Insulation represents approximately 1.2-1.4% of the total build cost of a new home but its impact is significant. Properly installed insulation offers a return on investment of $4 for every $1 spent through energy savings for families struggling with the cost of living, improved health, fewer sick days and reduced doctor visits. The small increase in initial build cost is worth it for higher quality housing that lasts for decades.

“Insulation cannot overheat a home – only solar gain and artificial heating provide heat to homes. If it is cold outside, insulation retains heat in a building. Equally, if it is hot outside, insulation retains cold air in a building thereby reducing both heating and cooling energy costs.

“The upgraded H1 insulation standards also encourage better insulation practices in renovations. The single biggest energy efficiency issue in this country is the existing stock of cold draughty houses. When the new build market slows, homeowners carry out renovations and they renovate to the current insulation standard which lifts the performance of the current building stock.

“There has been a long lead in for the H1 changes and the industry has made significant investment in preparation for these changes. Any changes at this point will knock investment confidence and create disruption and risk to the industry as a whole.

“IAONZ has been encouraged by our recent meeting with Minister Penk, who showed strong willingness to understand the wider issues around building performance. We encourage the Government to give the insulation changes time to be properly bedded in.

“A high proportion of consented buildings are being built according to the previous H1 standards because they were consented prior to the change. The cost increase for insulation in new builds since the change is primarily due to the schedule method compliance pathway, which can be more expensive for some builds. IAONZ recommends the calculation or modelling methods for greater flexibility and a more holistic approach to energy usage. The industry is getting more cost-efficient very quickly.

“H1 aligns New Zealand's insulation standards with other developed countries. These countries have successfully implemented similar codes without significant cost increases. Proper design and compliance pathway selection are key to preventing overheating,” says Mr Arkinstall.

Note: Pre-H1 insulation on an average sized house was approximately $4.5K-$5.5k for a new build. Post-H1 that cost has moved to approximately $7 - $8.5k (high-end houses require more specific modelling and the cost increase is greater). Wall and ceiling insulation has been the smallest increase of all the H1 changes.

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