Hon Minister Chris Penk
Minister for Building and Construction

The Government is proposing commonsense changes to reduce the upfront cost of building, while maintaining robust energy efficiency standards, Building and Construction Minister Chris Penk says.

“We know from a social investment point of view that Kiwis do much better when they have access to affordable, insulated, secure housing.

“However, building costs have increased by more than 40 per cent since 2019, with devastating consequences for Kiwis locked out of affordable housing.

“That’s why earlier this year I instructed MBIE to review the recently implemented H1 energy efficiency standards to ensure that the compliance costs were not unreasonable and were well balanced with the health and efficiency gains.

“This followed a number of concerning reports I had received that the new standards were adding significant additional costs in some cases.

“MBIE has now completed its review and is proposing some commonsense changes to enable greater flexibility for how builders and designers can meet energy efficiency standards at a lower cost.

“This includes a proposal to remove the prescriptive “schedule method” that sets out insulation requirements in a new build. The schedule method is a blunt tool, whereas the “calculation method” and “modelling method” enable designers to adjust the insulation levels of different building elements – like the walls, ceiling, underfloor – to optimise a buildings’ overall energy performance in the most cost-effective way.

“The calculation and modelling methods enable a designer to better consider the building as a whole, rather than as a series of individual components, and have been shown to reduce up-front costs as much as $15,000.

“Another key change is adjusting the minimum ‘R-values’ for roof, wall and floor insulation. New builds will still have to meet a certain energy efficiency standard, but designers will have more choice about how best to do this. For example, more insulation in the walls can be balanced out with less insulation underfloor.

“Importantly, MBIE is also updating the data and assumptions used to understand the climate in different regions. This data is used to calculate regional requirements for insulation and updates should help address the issue of overwarm homes in some regions.

“I am pleased that we now have a much better understanding of the real-world implications of the H1 energy efficiency standards and can make well informed adjustments to better consider the costs and benefits

“I encourage all industry participants to submit on the proposed changes, so we get balanced and workable standards that enable Kiwis to benefit from energy efficient, affordable homes.”

Note:

• The review identified upfront cost savings of $3,712 to $9,565 when using the calculation method, and $2,318 to $15,071 when using the modelling method.
• The H1 Energy Efficiency consultation will run until 28 February 2025. To have your say, visit www.mbie.govt.nz/have-your-say/changing-building-and-home-insulation-requirements

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