The official word on the 2025 H1 Insulation standards update

 

 

In our last update on the H1 insulation standards, we noted that the Government was considering scrapping the schedule method for calculating a home’s insulation requirements.

This has now been confirmed. Building and Construction Minister Chris Penk announced the schedule method would be removed from the Building Code’s Acceptable Solutions and Verification Methods by the end of this year.  

After that, there’ll be a 12-month grace period for builders to get up to speed with alternative ways of calculating how much insulation is needed. By the end of 2026, the schedule method will no longer comply with the Building Code.  

The Ministry of Business, Innovation and Employment (MBIE) will provide guidance on how to use the more flexible calculation method instead. BRANZ has also developed a comprehensive set of tools to help you understand what and how to apply the calculation method.   

According to Minister Penk: “Smarter online tools now let us take a balanced, whole-of-home approach to energy efficiency – enabling builders and designers to measure a home’s total heat loss instead of being locked into prescriptive requirements.  

“Using adaptable calculation and modelling methods is shown to cut the cost of an average new build by up to $15,000. The Government will now work closely with the sector to ensure a smooth transition before the change takes effect.”  

For builders in the Far North, separate insulation guidelines may also be coming. Minister Penk has directed officials to investigate making the Far North a separate climate zone under the Building Code, with its own insulation rules. 

This comes after the Far North District Council made a submission that the region’s warmer climate and need for affordable housing required greater flexibility. MBIE will consult on any changes around this, so the public and tradespeople can have their say. 

Both sets of changes are already being welcomed by Master Builders. 

“We understand why the Government has made the decision to remove the schedule method from the Building Code. The schedule method has proved too rigid and has often led to over-costing projects without delivering meaningful improvements to energy efficiency,” says Chief Executive, Ankit Sharma.  

“We’ve consistently advocated for a more flexible and practical approach – one that enables better design outcomes and doesn’t compromise affordability. The calculation and modelling methods offer that flexibility, and we support efforts to make these more accessible to designers and builders.” 

To read the full announcement from Minister Penk, visit Beehive.govt.nz.