Election 2023: Labour promises energy efficiency retrofit rebates

September 8, 2023
Houses in Wellington (file image).

Labour has promised to introduce a rebate pilot for homeowners who upgrade their homes to be warmer, drier and more energy efficient, if re-elected to power at the election.

The three-year pilot would be for owners who undertook either a "deep retrofit", full insulation upgrade or electrification of their existing home.

It would mean rebates of up to $18,000 could be up for grabs through the scheme.

The policy would cost $81.6 million over four years and would be funded from the Climate Emergency Response Fund.

Building and construction and energy and resources spokesperson Megan Woods said warmer, drier homes have "massive potential" to decrease energy demands, and therefore emissions.

This was especially so when gas appliances were swapped for electric ones, she said.

"Everyone deserves to live in a warm, dry home. We know much of New Zealand's housing stock is energy inefficient. The rebate scheme announced today will reduce emissions, bring down household energy bills, build demand for deep retrofits, and grow jobs."

A "deep retrofit" — which would be eligible for a rebate of 30% of the total cost, up to $18,000 — aimed to achieve maximised energy efficiency by a "whole-of-house approach".

That differed from conventional retrofits which typically focused on an isolated system for upgrade, such as ventilation or insulation.

Where a deep retrofit was not required, especially one which already ran on electricity, a home could be eligible for an insulation rebate of up to $7000, under the policy.

Eliminating gas from New Zealand homes reduced carbon emissions, she said. Up to $3000 would be on offer as a rebate for households which moved off gas.

"Energy efficiency is often called the 'first fuel' in clean energy transitions, providing some of the quickest and most cost-effective emissions reductions while lowering household energy bills and strengthening energy security. These rebates make energy efficiency a possibility for everyday Kiwi homeowners.

"This builds on initiatives we have already delivered in Government, including the 100,000 retrofits undertaken through the Warmer Kiwi Homes programme for lower income New Zealanders, and the Healthy Homes standards for renters."

She said the policy was a "win-win" for New Zealand households and the environment.

In August, the Green Party announced a policy that would cover up to 25% of the cost of zero-carbon home upgrades such as rooftop solar, heat pumps, and better insulation like double-glazed windows.

Labour's retrofit rebate election promise

According to Labour, its policy would provide:

  • Rebates of up to $18,000 for deep retrofit of an existing home
  • Encourage air tightness, insulation, double-glazing and electrification
  • Up to $7000 for partial retrofits like double-glazing and insulation
  • Up to $3000 for households who electrify and move off gas

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