Government Reconsiders Insulation Standards

In July, RNZ reported that building and construction minister Chris Penk wants to roll back upgrades to insulation and glazing requirements introduced by the previous Labour government. The standards save a new home an estimated 40 percent on heating. 

Per correspondence released to RNZ under the Official Information Act, government experts told Penk that the old insulation and glazing standards were “significantly lower” than other countries with similar climates and that upgrades had overwhelming public support when they were introduced in May 2023.

Penk was not persuaded by these experts, whose opinions contrast with those of builders and developers in Tauranga, who told Penk that the H1 standard added $40,000 to $50,000 to the cost of a new home and caused overheating issues.

One building sector survey following the standards changes saw MBIE receive many complaints that homes were too warm and had to run air conditioning in winter. Further complaints said the new standards were not fully understood by architects or designers, that the upgrades had added $35,000 cost to a four-bedroom home, and that the changes were adding six to percent to building costs.

Penk sent a statement to RNZ saying that he had asked MBIE to “urgently investigate” the cost of insulation and glazing standard changes.

“Builders frequently raise concerns with me over the new requirements within clause H1 of the Building Code that they say are adding tens of thousands of dollars onto the cost of a home. There are also frequent reports of moisture and overheating issues that are leading to increased energy usage making the requirements counter-productive,” he told RNZ.

“In the middle of a housing crisis, while Kiwis are still living in cars and emergency accommodation such as motels, it is critical that we don’t create artificial barriers through well-intended but badly implemented policies.”

Industry Responds to Potential Rollback

The industry has widely criticised how Penk is considering a rollback of these standards.

The Public Health Communication Centre said in a statement that “any rollback of our insulation standards will cost industry, energy savings, and our health, according to public health researchers.”

“There is a 20-year history of solid research in Aotearoa, New Zealand, showing that insulation not only improves energy efficiency but also our health, with the benefits of insulation outweighing its costs,” says Dr environmental health specialist Lucy Telfar Barnard.

“Less insulation means more health sector costs and lower productivity. Even a top-up to existing insulation provides health benefits that make it worthwhile. The health and social benefits of insulation are nearly six times greater than the cost of the insulation,” she says. “Industry has already invested in manufacturing and stock to meet the new code.”

The Passive House Institute New Zealand (PHINZ) opposed the rollback in a statement.

“The recent changes to the Acceptable solution in Building code clause H1 Energy Efficiency (H1/AS1) represented a positive step towards achieving the core objectives of the Building Act; people who use buildings can do so safely and without endangering their health; and buildings have attributes that contribute appropriately to the health, physical independence, and well-being of the people who use them,” the press release reads.

“PHINZ acknowledges room for improvement in H1/AS1, but a rollback won’t solve the underlying issues.” On revising H1/AS1, PHINZ says that the industry must embrace international standards and ditch flawed tools. PHINZ advocates the use of building modelling to target maximum heating and cooling loads rather than mandating specific R-values for individual building elements.

Insulation Association of New Zealand (IAONZ) Executive Officer Richard Arkinstall says, “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”.

“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 percent 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.”