Government Heat Pump Subsidies & Grants

Save thousands on your heat pump installation with New Zealand government subsidies. Here's everything you need to know about available programs and how to apply.

Why Government Heat Pump Subsidies Exist

The New Zealand government recognizes that many Kiwi families struggle to afford adequate home heating, leading to serious health consequences. Cold, damp homes contribute to respiratory illnesses, particularly affecting children, elderly residents, and those with existing health conditions. Each winter, New Zealand hospitals treat thousands of preventable cold-related illnesses that cost the health system hundreds of millions of dollars annually.

Heat pumps offer an energy-efficient heating solution that can reduce power bills by 30-50% compared to traditional electric heaters while providing healthier, warmer homes. However, the upfront installation cost ($2,500-$5,000) remains a significant barrier for low-income households. Government subsidy programs aim to make heat pumps accessible to those who need them most but can least afford them.

Since 2018, the Warmer Kiwi Homes program (previously the Healthy Homes Initiative) has helped over 100,000 New Zealand households install insulation and heating, reducing energy poverty and improving health outcomes across the country. The program represents New Zealand's commitment to ensuring every family has access to warm, dry, healthy housing.

Warmer Kiwi Homes Program - Complete Overview

Up to 80% subsidy available

Maximum contribution: $3,000 for heat pumps

Your cost: As low as $500-800 for a complete installation

This program is administered by the Energy Efficiency and Conservation Authority (EECA) in partnership with approved regional providers across New Zealand.

Quick Eligibility Check

  • ✓ Community Services Card holder
  • ✓ Home built before 2008
  • ✓ No existing heat pump in main living area
  • ✓ Owner-occupied property
  • ✓ Located in eligible areas (most of NZ)

Detailed Eligibility Requirements

To qualify for the Warmer Kiwi Homes heat pump subsidy, you must meet ALL of the following criteria:

1. Community Services Card Requirement

You (or someone in your household) must hold a current Community Services Card issued by Work and Income New Zealand (WINZ). This card is available to:

  • Beneficiaries receiving income support from WINZ
  • Low-income working families (income thresholds apply)
  • Superannuitants with limited additional income
  • Some students receiving student allowances

Don't have a Community Services Card? Check if you qualify at workandincome.govt.nz - many working families are eligible but haven't applied.

2. Property Age and Type

Your home must have been built before 2008. This date was chosen because Building Code changes in 2008 improved insulation standards, meaning pre-2008 homes typically need more heating assistance.

Eligible property types:

  • Standalone houses
  • Townhouses (if you own the property)
  • Units with separate titles

Not eligible: Rental properties, investment properties, baches/holiday homes, or homes where you're not the owner-occupier.

3. No Existing Heat Pump in Main Living Area

The subsidy is designed to provide heating where none exists, not to replace existing heat pumps. Your main living area (usually the lounge or open-plan living space) must not currently have a heat pump installed.

Note: If you have an old, broken heat pump that needs replacement, the provider will assess on a case-by-case basis. Generally, if the unit is beyond economical repair and hasn't worked for several years, you may still qualify.

4. Owner-Occupier Status

You must own and live in the property as your primary residence. This means:

  • You hold the property title (or are buying it via mortgage)
  • The property is your main home (not a rental or investment)
  • You occupy the property yourself (not renting it to tenants)

Living in a trust-owned property? You may still qualify if you're the beneficiary and primary resident - check with the provider.

5. Geographic Coverage

The program is available in most of New Zealand, delivered through regional providers. Check the EECA website to confirm your area is covered and identify your local provider.

Step-by-Step Application Process

Applying for the Warmer Kiwi Homes subsidy is straightforward and typically takes 2-4 weeks from initial contact to installation completion. Here's exactly what to expect:

1

Check Eligibility Online

Visit the EECA Warmer Kiwi Homes website and use their online eligibility checker. You'll need:

  • Your Community Services Card number
  • Property address
  • Approximate year your home was built

The online tool takes just 2-3 minutes and will tell you immediately if you're likely eligible. If eligible, it will connect you with approved providers in your region.

Check on EECA website →
2

Contact Approved Provider

Once eligible, you'll be connected with an EECA-approved provider in your area. They'll schedule a free home assessment at a time convenient for you (usually within 1-2 weeks).

During the phone call, the provider will:

  • Confirm your eligibility details
  • Explain the subsidy amount you'll receive
  • Schedule your free home assessment
  • Answer any questions about the process

Note: There's absolutely no obligation - the assessment is free and you're not committed to proceeding.

3

Free Home Assessment

A qualified assessor visits your home to evaluate your heating needs. This visit takes 30-45 minutes and includes:

  • Room measurements: Calculating the appropriate heat pump capacity for your living area
  • Site inspection: Identifying the best locations for indoor and outdoor units
  • Electrical check: Ensuring your home's electrical system can support a heat pump
  • Insulation assessment: Checking if you also qualify for the ceiling/underfloor insulation subsidy (you often can combine both!)

The assessor will explain everything clearly and recommend the most suitable heat pump model for your home and climate.

4

Receive Quote and Choose

Within 2-3 days of your assessment, you'll receive a detailed written quote showing:

  • Full installation cost (what it would cost without subsidy)
  • Government subsidy amount (up to $3,000)
  • Your final cost (typically $500-$1,000)
  • Heat pump model and brand
  • Warranty information
  • Installation timeframe

You can accept the quote immediately or take time to consider (though don't delay too long as popular providers book up quickly, especially before winter).

5

Installation Day

Once you accept the quote, installation is typically scheduled within 2-4 weeks. On installation day:

  • Certified installers arrive at the scheduled time (installations take 3-4 hours)
  • All work is completed to Building Code and manufacturer standards
  • You receive a thorough demonstration of your new heat pump
  • Electrical Certificate of Compliance is issued
  • All mess is cleaned up and waste materials removed
6

Payment

You pay only your portion directly to the installer on completion (or via agreed payment plan). The government subsidy is handled entirely behind the scenes - you never see it, you just benefit from the reduced price.

Payment options: Most providers accept cash, bank transfer, credit/debit cards, or payment plans for those who need to spread the cost.

Expected Timeline

  • Online eligibility check: 5 minutes
  • Provider contact to assessment: 1-2 weeks
  • Quote received: 2-3 days after assessment
  • Installation scheduled: 2-4 weeks after accepting quote
  • Total time: Typically 4-6 weeks from start to finish

Timelines may be longer during peak seasons (March-June before winter). Apply early to avoid delays.

💰 Real Savings Examples

Small Heat Pump (2.5kW)

Normal Cost: $2,500
Government Subsidy (80%): -$2,000
Your Cost: $500

Medium Heat Pump (3.5kW)

Normal Cost: $3,200
Government Subsidy (80%): -$2,560
Your Cost: $640

Large Heat Pump (5.0kW)

Normal Cost: $4,000
Government Subsidy (max): -$3,000
Your Cost: $1,000

🏥 Additional Support Programs

Healthy Homes Initiative

Health-focused program for families with respiratory conditions or other health risks.

  • GP or health provider referral required
  • Priority for families with children
  • May cover full costs in some cases

Local Council Grants

Some councils offer additional grants or low-interest loans for energy efficiency improvements.

  • Check with your local council
  • May be combined with other subsidies
  • Often focus on environmental benefits

Accommodation Supplement

If you receive accommodation supplement, heating costs may be considered in your entitlement.

  • Contact Work and Income
  • May affect accommodation supplement
  • Long-term savings on heating bills

Frequently Asked Questions

Homeowners with Community Services Cards, people living in low-income areas, or those referred by the Healthy Homes Initiative may be eligible for subsidies up to 80% of heat pump costs.
Eligible homeowners can save up to 80% on heat pump costs through the Warmer Kiwi Homes program, potentially saving thousands of dollars on installation.
Check eligibility on the EECA website, get a home assessment, choose an approved provider, and complete installation through the Warmer Kiwi Homes program.

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