Are Government Rebates for Heat Pumps Still Available in NZ?

Heat Pump Rebate and Subsidy Guide: Warmer Kiwi Homes and Heater Grants in 2025-2026

Key Takeaways

• Government grants through Warmer Kiwi Homes cover up to 90 percent of the cost of an approved heater, capped at $3,450 including GST.
• Eligibility expanded in August 2025 to include an additional 300,000 homes in lower-to-middle income brackets.
• From January 2026, grants for wood and pellet burners will cease, while heat pump funding remains a priority.
• Eligible households can save approximately $640 per year on heating bills by switching to an efficient heat pump.
• Auckland Heatpump Services provides free quotes and price matching to help homeowners maximise their rebate value.

Navigating government incentives can feel like a bit of a maze, especially when policies shift between budget cycles. If you are an Auckland homeowner looking to warm up your living room without draining your savings, you have likely heard whispers about "free heat pumps" or massive rebates. While the reality is more nuanced than a simple giveaway, the good news is that significant financial support remains available through 2025 and into 2026.

We have seen many locals miss out on thousands of dollars simply because they assumed they did not qualify or thought the schemes had ended. In our experience, the current landscape for energy efficiency is actually more accessible now than it was a few years ago. Our team is here to help you understand exactly what is on the table, how the Warmer Kiwi Homes programme works, and what the recent changes mean for your property.

Is there a government subsidy for heat pumps in NZ?

Yes, the primary government subsidy for heat pumps is the Warmer Kiwi Homes programme, managed by the Energy Efficiency and Conservation Authority (EECA). This initiative provides means-tested grants to help owner-occupiers make their homes healthier and more energy-efficient. For those who meet the criteria, the Warmer Kiwi Homes programme provides grants covering 50 to 90 percent of the cost of approved heaters, including heat pumps.

The specific amount you receive depends on your location and your financial situation. For heating, these grants are currently capped at $3,450 including GST. This cap ensures that the funding reaches as many households as possible while still covering the vast majority of the cost for a standard high-wall split system. This level of support makes it possible for many Aucklanders to install a premium system with very little out-of-pocket expense.

What are the current eligibility criteria for a heat pump rebate?

Eligibility for a heating grant focuses on three main factors: your home ownership status, the age of your house, and your financial situation. You must be the owner-occupier of the home, and the property must have been built before 2008. The programme prioritises those who need it most, typically targeting people with a Community Services Card or those living in specific lower-income areas.

A major update occurred on 5 August 2025, which significantly broadened the reach of the programme. According to Easy Insulation , this expansion added up to 300,000 more homes to the eligibility pool, specifically targeting deciles 5 to 7. This change means many middle-income Aucklanders who were previously excluded might now qualify for support. With over 170,000 home retrofits already completed nationwide, the programme has a proven track record of making New Zealand houses drier and warmer.

How much can I actually save with a heat pump subsidy?

The savings come in two forms: the immediate reduction in the purchase price and the long-term drop in your power bills. When you use a heating grant, you are often looking at a 90 percent discount on the unit and installation. According to Selectra , an eligible household can save around $640 per year on heating bills by switching to a modern heat pump.

If your home also requires insulation, the programme offers separate grants covering 50 to 90 percent of the cost for ceiling and underfloor insulation. Proper insulation is a prerequisite for the heating grant because there is little point in putting a heater into a "leaky" home that cannot hold the warmth. Adding insulation can deliver additional energy savings of about $340 per year, meaning the combined impact on your household budget is substantial. We often tell our customers that the system pays for itself through these savings within just a few years.

How do grants interact with real Auckland installation costs?

Understanding the gap between a grant and the total invoice is vital for budgeting. In the Auckland market, a standard single-split heat pump installation typically ranges from $1,700 to $4,000. When you apply the Warmer Kiwi Homes cap of $3,450, you can see that a large portion of a high-quality installation is covered. You can find more detail on these variables in our Auckland heat pump installation 2025 cost guide , which breaks down the factors like pipe-run length and wall materials that influence the final price.

To give you a concrete idea of pricing, we offer several Panasonic packages that fit well within or near these grant levels. For example, our Panasonic heat pump specials include the Aero Z series Z25AKR 3.2 kW package for $1,990 including GST, which features built-in Wi-Fi and Nanoe X air purification. For larger spaces, the Z50AKR 6.0 kW is available for $2,390 including GST. Even if you do not qualify for a full 90 percent grant, our Developer RZ series starts at just $1,799 including GST for a 3.0 kW unit, providing an affordable entry point for any homeowner.

Are there hot water heat pump rebates available?

While the Warmer Kiwi Homes programme primarily focuses on space heating and insulation, there is growing interest in hot water heat pump rebates. Currently, the national grants for hot water systems are more limited than those for living room heaters. However, transitioning to a heat pump hot water system is a smart move for long-term efficiency, as these units are significantly more effective than traditional electric cylinders.

If you are looking to upgrade your hot water system, we recommend checking for local council climate funds or low-interest bank loans. Many New Zealand banks now offer "green home" top-ups on mortgages at very low rates to cover energy-efficient equipment. While it might not be a direct government rebate in the same way the heating grant is, it provides a low-cost way to finance a system that will slash your water heating costs for years to come.

What changes are coming to the programme in 2026?

The government has confirmed that the Warmer Kiwi Homes programme will evolve in early 2026. A significant change taking effect on 9 January 2026 is the removal of grants for new wood and pellet burners. The focus is shifting entirely toward heat pumps as the preferred efficient electric heating solution. This policy shift reflects the superior efficiency and lower emissions profile of heat pump technology.

This transition is part of a broader market trend. Data from TechSci Research shows the New Zealand air-source heat pump market was valued at USD 9.26 million in 2024 and is projected to reach USD 13.67 million by 2030. This represents a Compound Annual Growth Rate (CAGR) of 6.71 percent. CAGR is a way of measuring the steady annual growth of an industry over time. This growth is driven by both government incentives and a general move toward "climate smart" energy choices.

Why is the government prioritising heat pumps over other heaters?

The push toward heat pumps is rooted in their incredible efficiency. A modern heat pump typically has a Coefficient of Performance (COP) of 3.0 to 5.0. In simple terms, this means for every 1 kilowatt of electricity the unit uses, it delivers 3 to 5 kilowatts of heat into your home. This 300 to 500 percent efficiency is impossible for traditional electric heaters or gas burners to match.

Furthermore, because New Zealand’s national grid is roughly 80 to 85 percent renewable, using electricity for heating is a very low-carbon choice. We discuss this in depth in our article on eco-friendly heat pumps in NZ , which explains how these systems can have ten times lower emissions than gas or LPG alternatives. By providing rebates, the government is helping homeowners lower their carbon footprint while also reducing the strain on the national energy grid during peak winter months.

What costs should I prepare for that are not covered by rebates?

It is important to remember that a grant usually covers the initial supply and installation, but it does not cover everything. For instance, if your home requires a significant switchboard upgrade to handle the new electrical load, those costs might fall outside the standard grant scope. Additionally, ongoing maintenance is the responsibility of the homeowner. We always recommend regular servicing to keep your 5-year warranty valid and your system running at peak efficiency.

At Auckland Heatpump Services, we keep our maintenance costs transparent. Our standard heat pump service is $130 + GST for the first unit, with additional units at the same premises costing only $65 + GST each. If you need general electrical work, our electrician hourly charge is $90 + GST. We also provide free quotes for both supply-and-install and install-only work, and we are committed to price matching or beating any written quote you receive. You can view our full list of rates on our pricing page to help you plan your budget accurately.

How do I check my eligibility and get started?

The first step is to use the EECA eligibility tool to see if your home and financial situation align with the current requirements. If you are eligible, you will be directed to a list of contracted providers in the Auckland region. If you do not qualify for the government grant, do not be discouraged. There are still many ways to make an installation affordable through our seasonal specials and competitive pricing.

We have helped countless Aucklanders find the right balance between performance and price. Whether you are looking for a high-end Panasonic Aero Z with Nanoe X air purification or a reliable, budget-friendly RZ series unit, our team is here to provide straightforward advice. We offer free, no-obligation quotes and will work with you to ensure you are getting the maximum possible value, whether that is through a government subsidy or our own local deals. Contact us today to discuss your home and find out how we can help you stay warm for less this winter.