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Home / Business / Companies / Construction

Some northern new houses so energy efficient, they must be cooled in winter: Minister Chris Penk

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
17 Jul, 2024 09:34 PM4 mins to read

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PM Luxon and Building and Construction Minister Chris Penk announced three major changes to building supplies to address shortages . Video / Mark Mitchell

Some new homes in New Zealand’s northernmost area are so energy-efficient that they must be cooled in the winter, Building and Construction Minister Chris Penk says as he defends his plan to review building standards.

“We are hearing that in warmer parts of New Zealand such as Northland, residents are having to expend more energy on cooling their home, making the H1 requirements not only expensive but also counterproductive,” Penk said in announcing a possible review of those energy standards.

The H1 Building Code clause regulates a home’s energy efficiency, covering wall, floor, and ceiling insulation and window and door thermal performance.

Penk said material supplied to the Ministry of Business, Innovation and Employment showed cooling houses during winter via heat pumps was expensive.

The ministry got “state of the sector unprompted comments” about the new H1 home energy-efficiency standards which Penk indicated might need reviewing. The feedback said: “Change the H1 regulations: homes are now too warm. Clients are needing to run air con in winter to cool the home down!”

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Richard Arkinstall, Insulation Association executive officer, disagreed with Penk.

“Insulation cannot overheat a home. Only solar gain and artificial heating provide heat to homes,” Arkinstall said.

“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.”

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The new H1 insulation standards were a positive first step towards healthier, more energy-efficient homes and insulation was only 1.2% to 1.4% of the total build cost of a new home, he said.

“But its impact is significant. Properly installed insulation offers a return on investment of $4 for every $1 spent,” Arkinstall said.

Andrew Eagles, chief executive of the New Zealand Green Building Council. Photo / NZGBC
Andrew Eagles, chief executive of the New Zealand Green Building Council. Photo / NZGBC

Green Building Council chief executive Andrew Eagles said Penk’s talk of winding back energy-efficiency standards was “unbelievably shortsighted and goes against global best practice for housing. This is effectively ripping insulation out of children’s homes.”

But Penk was sticking to his guns.

“Builders across New Zealand frequently raise concerns with me over the new H1 requirements in the building code that were implemented over the last few years. I have instructed the ministry to look into the real-world impacts of these changes, but no decisions have been made at this stage.

“Feedback from builders on the ground is that these new requirements are too prescriptive and adding tens of thousands of dollars onto the cost of a new home.

“This is well above what was originally anticipated when the policy was introduced and consulted on with the sector,” Penk said.

Other feedback to the ministry against H1 said:

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  • H1 had driven up new home costs by $35,000 to $50,000 each;
  • “New H1 requirements will cause massively increased costs to end customers and further stall our industry;”
  • “Please stop excessively raising the compliance bar. H1 is now excessive and expensive. You’re trapping more people out of being able to afford humble alterations that would otherwise enhance their home’s liability;”
  • “Where do I start? First off, the new H1 changes are a complete and utter waste of time and money. Houses built in 2018 are easy to heat, easy to cool, warm and dry. The need for the Government to impose regulations solely for the purpose of climate goals is irresponsible, particularly when there is record homelessness and record emergency housing.”

Defending H1, Eagles wrote to Penk on Tuesday.

“It is the professional view of the majority of the sector that the standards enacted are not overly onerous or costly,” Eagles told the minister.

“If specific builders are having trouble with the standards, they should seek advice from industry bodies like the New Zealand Green Building Council or Branz. These entities can support with guidance and share how others are achieving the standard cost-effectively.”

Eagles also questioned whether a minister should be involved in a call for a review of H1, asking if that should be done by ministry officials, not a politician.

Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.


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