Consultation on H1 energy efficiency settings for new builds

Originally introduced in 2021, the final H1 changes came into effect in November 2023, following a staggered implementation approach. With more than 12 months experience using the new settings, the Ministry of Business, Innovation and Employment (MBIE) is taking closer look at the settings. MBIE has also been checking for any unintended consequences that may result in overheating and condensation in new home builds.

MBIE recently ran a series of targeted check-ins with the building and construction sector, including suppliers, manufacturers, builders and designers, to more fully understand how the H1 Energy Efficiency settings were working in the current economic environment.

While there is general support for the H1 settings, there are opportunities to enable more flexible compliance methods, that will help to keep building costs in check. Clear guidance and easy-to-use education tools would also help designers keep the cost of a build down.

Research undertaken as part of the review has confirmed that housing overheating is not caused by insulation, rather it is a combination of design factors such as sun heat gains during the day, window shading, heat absorption properties of building materials, as well as ventilation and building orientation.

This consultation proposes options to enable designers to optimise their designs to reduce upfront costs, while still retaining the benefits of long-term energy efficiency. MBIE is seeking feedback on proposed updates to its energy efficiency solutions used by designers and builders. There are a number of proposed improvements including:

• adjusting methods of compliance to reduce upfront costs of buildings and improve cost effectiveness
• options to better balance upfront cost design decisions with long term cost benefits
• checking whether removing the prescriptive Schedule Method would increase design flexibility
• relaxing the requirements in the Calculation and Modelling methods that would increase design flexibility and better enable buildings to be optimised
• looking at whether building framing ratios need to be adapted to better meet insulation specifications.

The H1 Energy Efficiency consultation will run until 28 February 2025. To have your say, visit

Have your say: Insulation requirements in housing and other buildings

Read the Government's announcement.

Commonsense changes to insulation standards(external link) — Beehive.govt.nz