Warmer Kiwi Homes Benefits Quantified

17 April 2023

These are the Key Findings from the research undertaken by Motu about the Warmer Kiwi Homes heating programme.

If you aren't familiar with Warmer Kiwi Homes yet, it is a government funded programme that provides subsidies to eligible homeowners in lower income neighborhoods or homeowners holding a CSC. These subsidies are for clean heating devices (heat pumps) and installation of retrofitted insulation for houses without or with no proper insulation.

The primary objective of this initiative is to make Kiwi homes healthier, warmer and drier along with helping them become more energy efficient.

Thus, Motu Research had independently undertaken an impact evaluation of the Warmer Kiwi Homes subsidy programme that was conducted over the year 2021-22 and funded by the government. This evaluation collected and analyzed data on the outcome of heat pump installation, but mainly in the lower income neighborhoods of NZ.

10 key results on the benefits of heat pumps installed under Warmer Kiwi Homes.

  1. Electricity use dropped by 16% for homes with a heat pump compared to those without a heat pump.
  2. When the heat pump was used as an air-con during summer, there wasn’t much increase in electricity consumption.
  3. Living room temperatures have proven to be warmer by 1.1℃ during winter with a heat pump, when compared to homes without heat pump. With 77% reporting an increase in warmth in the living room.
  4. The World Health Organisation has recommended an indoor temperature of minimum 18℃. A BRANZ study shows that when homes were kept between 18℃ and 20℃, it could avoid indoor dampness.
  5. The benefit:cost ratio was $4.66 for every $1 invested by the government/taxpayers and this excludes the improved comfort and wellbeing benefits.
  6. There was a significant reduction in condensation noticed by 89% of the recipients, on the windows of their living areas
  7. It was reported that 81% were more satisfied with their homes, with 47% noticing a reduction in dampness.
  8. Majority people that participated in the study reported that their biggest reason to apply for the Warmer Kiwi Homes subsidy is to reduce costs, with the next strongest reason being to improve warmth.
  9. The study concludes that 75% of the WKH programme subsidy users would not have been able to get insulation or a heat pump without the programme.
  10. It was also reported that the 93% in the Warmer Kiwi Homes programme considered that the heat pump was the right choice for their homes.
Brighter Infographic Subsides By Numbers Apr23 V01 By Scott

If you'd like to check whether you're eligible for the Warmer Kiwi Homes subsidies, click here.

Source -Evaluation Report of the Warmer Kiwi Homes Programme, by Motu Economic and Public Policy Research.

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