2025 New Zealand Heat Pumps: Costs, Rebates, Warmer Kiwi Homes Eligibility, Installation and Savings — An Informational Guide

Heat pump types and typical cost ranges in 2025

Heat pump technology comes in several forms and the total cost depends heavily on system type and installation complexity.

• Air‑source (split) systems: The most common residential option. For a single indoor + outdoor split system, expect a wide range in purchase plus installation costs depending on model, capacity and site conditions. For many New Zealand homes the all‑up cost typically falls in a lower‑to‑moderate residential range.
• Multi‑split and ducted systems: These add zoned heating and cover larger floor areas, increasing equipment and installation complexity and cost.
• Ground‑source (geothermal) and complex systems: Systems that require ground loops, substantial site works, or full hydronic integration are far more expensive and approach commercial‑scale pricing.
• Water‑source and specialised systems: Typically reserved for properties with access to a water heat source or for commercial installations; costs reflect that complexity.

Cost drivers to watch: - Size and capacity required for your home - Number of indoor units and zones - Need for new or upgraded electrical supply - Access and mounting challenges (e.g., multi‑storey, solid walls) - Ductwork, site works, or ground loops for geothermal systems - Installer labour rates and regional demand

Get multiple quotes from experienced installers so you can compare system sizing, warranties, and the full scope of work rather than just the headline unit price.

What the Warmer Kiwi Homes heat pump subsidy covers and how it works in 2025

Warmer Kiwi Homes provides targeted financial support to help eligible homeowners install heat pumps. Key points to understand:

• The programme subsidises a large portion of approved purchase and installation costs for qualifying heat pump installations, with a maximum approved subsidy amount set by the programme.
• After approval and installation under the programme, many households see a substantially reduced out‑of‑pocket cost for a qualifying split system installation.
• The subsidy is administered through EECA‑approved providers and installers who manage the application on the homeowner’s behalf.

Eligibility and how the subsidy is linked to insulation: - Eligibility typically focuses on homes built before 2008 and on households with a Community Services Card, SuperGold Combo Card, or households living in government‑identified low‑income areas. - A dwelling must meet EECA’s minimum ceiling and underfloor insulation standards to qualify for the heat pump subsidy. Warmer Kiwi Homes can also provide insulation support to help homes reach those standards. - EECA‑approved providers can check eligibility and determine the combination of insulation and heating support appropriate for the home.

Insulation: why it matters and the subsidy linkage

Insulation is both a condition of subsidy eligibility and one of the strongest ways to maximise savings from a heat pump.

• Meeting the required ceiling and underfloor insulation standards reduces heat loss, which lowers required heat pump capacity and decreases running costs.
• The Warmer Kiwi Homes programme also supports insulation upgrades, with a separate subsidy component for insulation works in qualifying homes.
• Prioritising insulation upgrades before or alongside heat pump installation improves comfort, reduces energy use, and typically improves the payback on the heating upgrade.

Application steps and typical timeline

A clear, practical sequence reduces delays and helps ensure subsidy approval:

• Verify eligibility: Contact an EECA/Warmer Kiwi Homes approved provider to review your home and household circumstances.
• Obtain quotes: Request at least three quotes from EECA‑approved installers who can handle the subsidy application.
• Apply and schedule: Approved installers submit the subsidy application and, once approved, arrange installation.
• Installation and inspection: Installers complete the work and any post‑install checks required by the programme.

Typical overall turnaround from first quote to finished install is commonly a few weeks to a couple of months, but scheduling can take longer during peak demand periods.

Installation best practices to maximise performance and savings

Choose an experienced, accredited installer and follow these practical guidelines:

• Proper sizing: Ensure the installer conducts a room‑by‑room assessment and sizes units to the home’s heat‑loss profile; oversized or undersized units reduce comfort and increase costs.
• Combine with insulation upgrades: Do insulation and draught‑proofing work before or alongside the heat pump to improve effectiveness.
• Site preparation: Clear access paths and mounting locations, and address any electrical supply needs ahead of the installer’s arrival.
• Seasonal timing: Scheduling installation in spring or autumn can reduce lead times.
• Confirm warranty and service terms: Know what routine maintenance is recommended and what is covered by warranty.

Running costs, maintenance and expected savings

Ongoing costs and savings depend on usage, climate, and home performance:

• Annual running costs for a well‑sized basic split system vary by household behaviour, insulation and local climate, but many households find running costs are substantially lower than older electric or non‑efficient heating methods.
• Routine maintenance, such as filter cleaning and an annual service by a qualified technician, preserves efficiency and typically incurs modest yearly costs.
• Smart controls, correct zoning, and consistent maintenance all contribute to lower energy use and longer equipment life.

Keep simple practices — regular filter cleaning, timely repairs, and sensible thermostat settings — to protect efficiency and savings.

Features and technologies that improve efficiency

When comparing models and options, consider technologies that support long‑term efficiency:

• Inverter compressors for variable output and smoother, more efficient operation
• Modern refrigerants and efficient heat‑exchange components
• Smart thermostats and app controls for scheduling and remote management
• Zoned controls and sensors to heat only occupied spaces

Ask installers to explain how these features may affect operating costs and comfort in your specific home.

Other funding sources and practical next steps

Beyond Warmer Kiwi Homes, look into: - Local council or electricity retailer programmes that sometimes offer complementary incentives - EECA guidance and tools for home energy efficiency - Community or charity programmes that may assist eligible households with retrofit work

Practical next steps: - Verify your eligibility with an EECA‑approved provider - Get at least three EECA‑approved quotes that include full scopes of work - Prioritise insulation and draught‑proofing where needed - Plan for routine maintenance to preserve savings

Deciding which system suits your home

Choosing the right system rests on balancing household needs, building layout, and long‑term running costs:

• For many households, a correctly sized split system heat pump provides the best blend of affordability and performance.
• Larger, whole‑house ducted systems or geothermal solutions suit larger or unique properties but require careful analysis of long‑term costs and benefits.
• Always ask for a heat‑loss assessment and insulate appropriately before committing to a system.

Conclusion

Heat pumps remain a practical route to warmer, healthier, and more energy‑efficient homes in New Zealand in 2025. By understanding the types of systems, how the Warmer Kiwi Homes programme links subsidies to insulation, and by following installation and maintenance best practices, homeowners can make informed choices that improve comfort while managing ongoing energy costs.

Sources

• EECA — Energy Efficiency and Conservation Authority (New Zealand): https://www.eeca.govt.nz/
• Archipro — The true cost of buying and installing a heat pump in New Zealand: https://archipro.co.nz/article/heat-pump-installation-costs-new-zealand

Prices, financing options, and availability vary by region, dealer, and current promotions. Always verify current information with local dealers. Offers and incentives are subject to change and may vary by location. Terms and conditions apply.