2025 New Zealand Heat Pumps: Prices, Rebates, Warmer Kiwi Homes Eligibility, Installation and Savings — A Practical Guide

Heat pump types and typical cost ranges in 2025

Heat pump options vary and total costs are strongly influenced by system type and how complex the installation is.

• Air‑source (split) systems: The most common residential choice. For a basic single indoor + outdoor split system, purchase and installation costs vary widely by model, capacity and site conditions. For many New Zealand homes the all‑up cost typically sits in the lower‑to‑moderate residential range.
• Multi‑split and ducted systems: These provide zoned heating and cover larger areas, which raises equipment and installation complexity — and cost.
• Ground‑source (geothermal) and complex systems: Systems that need ground loops, major site works, or full hydronic integration are considerably more expensive and approach commercial pricing.
• Water‑source and specialised systems: Usually found on properties with a water heat source or in commercial settings; the costs reflect their added complexity.

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

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

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

Warmer Kiwi Homes offers targeted financial help to eligible homeowners installing heat pumps. Key points to know:

• The programme subsidises a substantial portion of approved purchase and installation costs for qualifying heat pump installations, up to a maximum subsidy amount set by the scheme.
• After approval and installation under the programme, many households see a much reduced out‑of‑pocket expense for a qualifying split system installation.
• The subsidy is managed through EECA‑approved providers and installers, who handle the application process on the homeowner’s behalf.

How eligibility ties to insulation: - Eligibility generally targets homes built before 2008 and households holding a Community Services Card, SuperGold Combo Card, or those 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 fund insulation work to help homes reach those standards. - EECA‑approved providers can assess eligibility and decide the right mix of insulation and heating support for each home.

Insulation: why it matters and the subsidy linkage

Insulation is both a condition for subsidy eligibility and one of the most effective ways to boost heat pump savings.

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

Application steps and typical timeline

Following a clear sequence helps avoid delays and improves the chance of 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 manage the subsidy application.
• Apply and schedule: Approved installers submit the subsidy application and, once approved, arrange installation.
• Installation and inspection: Installers carry out the work and any post‑install checks required by the programme.

From first quote to finished install typically takes a few weeks to a couple of months, though busy periods can extend scheduling times.

Installation best practices to maximise performance and savings

Select an experienced, accredited installer and follow these practical tips:

• Proper sizing: Ensure the installer completes a room‑by‑room assessment and sizes units to the home’s heat‑loss profile; incorrectly sized units can reduce comfort and increase costs.
• Combine with insulation upgrades: Do insulation and draught‑proofing before or at the same time as the heat pump to boost effectiveness.
• Site preparation: Clear access paths and mounting locations, and address any electrical supply needs before the installer arrives.
• Seasonal timing: Booking installation in spring or autumn can reduce lead times.
• Confirm warranty and service terms: Understand recommended routine maintenance and what the warranty covers.

Running costs, maintenance and expected savings

Running costs and savings depend on usage patterns, climate, and the home’s performance:

• Annual running costs for a well‑sized basic split system vary with household behaviour, insulation and local climate, but many households find running costs are much lower than older electric or inefficient heating methods.
• Routine maintenance, like filter cleaning and an annual service by a qualified technician, keeps efficiency up and typically costs only modestly each year.
• Smart controls, correct zoning, and regular maintenance all help reduce energy use and extend equipment life.

Simple habits — regular filter cleaning, prompt repairs, and sensible thermostat settings — protect efficiency and savings.

Features and technologies that improve efficiency

When comparing units, look for technologies that support long‑term efficiency:

• Inverter compressors for variable output with 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 areas

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

Other funding sources and practical next steps

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

Practical next steps: - Confirm your eligibility with an EECA‑approved provider - Obtain at least three EECA‑approved quotes that include full scopes of work - Prioritise insulation and draught‑proofing where required - Plan regular maintenance to preserve savings

Deciding which system suits your home

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

• For many households, a correctly sized split system heat pump offers the best mix of affordability and performance.
• Larger, whole‑house ducted systems or geothermal solutions are suited to bigger or unusual properties but need careful analysis of long‑term costs and benefits.
• Always request a heat‑loss assessment and ensure adequate insulation before choosing a system.

Conclusion

Heat pumps remain a practical path to warmer, healthier, and more energy‑efficient homes in New Zealand in 2025. By learning about system types, understanding how the Warmer Kiwi Homes programme links subsidies to insulation, and 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.