Builders feel heat of rules on insulation

New-home builders are beginning to feel the pinch with higher costs to keep their homes warm.

But despite the increased set-up bill, many are now looking forward to cheaper power and warmer, healthier and quieter homes.

New insulation requirements for new homes, which include increased R-values - the measure of an insulation material's performance - were made mandatory by the Labour Government for all new homes and major extensions to houses last October.

The changes are aimed at reducing energy usage in New Zealand homes by up to 30 per cent and include subsidies for older homes needing insulation and easier approvals for people wanting to install solar water heating systems.

But the changes cost.

Alan Shaw, vice-president central region of the Certified Builders Association of New Zealand, said depending on a house's size, new-home builders could foot an additional initial bill of up to $7000.

But he did not think the changes would adversely affect first-home builders. "Interest rates are nice and low, we haven't seen them at these levels for a while," he said.

Mr Shaw was an advocate of double-glazing which he said was now cost-efficient and sustainable.

"Double-glazing has an offset as well. It keeps homes warmer in winter, cooler in summer and saves on power, you've got to add those factors into it," he said.

Green Party co-leader Jeanette Fitzsimons welcomed the changes and said it "made no sense" for prospective homeowners to "worry about a few hundred dollars", when the long-term power savings were immense.

"It's probably one of the most sensible things that has happened and it is one of the things the Green Party did push for a long time ago," she said.

The Energy Efficiency Conservation Authority website says Auckland homeowners building a medium-sized house costing $254,000 face additional construction costs of between $3000 and $5000.

But these costs would be countered by an annual saving in energy bills of $760 and a return on investment of about seven years.

In Christchurch the annual saving on energy bills is higher at $1340 while the return on investment on insulation and double-glazed windows on an average $251,000 new home is four years.

Craig Gundesen of glass processor and supplier Metro Glass Tech said there was an increased consumer awareness about double-glazing.

"It does make a massive difference, especially in cold areas, it also makes a noticeable difference in warm areas."

But despite a "high demand" to retrofit existing homes with double-glazed windows, business on new homes had been quieter than normal.

GLAZED LOOK

The changes to the Building code:

* All new homes and homes undergoing major renovations must have double-glazed windows.
* New homes must also use insulation materials with a higher R-value - a measure of its thermal performance - than previously used.
* Easier approval of solar water heating systems.