The importance of heat pump water heaters
In New Zealand, water heating accounts for over 30% of household energy use, making it the second largest user of home energy after space heating.
Traditionally, electric storage water heaters (hot water cylinders) have been the dominant technology used in New Zealand with 80,000 units sold each year, followed by gas water heaters (mostly instantaneous).
Heat pump water heater (HPWH) technology provides consumers with an energy-efficient alternative for domestic hot water supply that can significantly reduce household energy use for hot water by 50% or more.
Decision Regulation Impact Statement
Following a period of consultation at the end of 2025, the Australian Energy and Climate Change Ministerial Council (ECMC) agreed to introduce Minimum Energy Performance Standards (MEPS) and labelling requirements for HPWHs. The proposals were developed under the Trans-Tasman Equipment Energy Efficiency (E3) programme.
In New Zealand, HPWH are not currently regulated for energy efficiency, and the government is yet to consider the proposed changes. EECA is working with DCCEEW on the next steps to ensure Trans-Tasman alignment.
The Decision Regulation Impact Statement (DRIS) outlines the policy recommendations that were approved by ECMC, and was developed considering consultation feedback.