It’s been over a month since the Green Property Summit and our last newsletter and there’s a lot happening. Bear with me. We've been hard at work with plenty more to come.
It seems every other week, we’re seeing businesses across Aotearoa succumbing to mounting cost pressures, laying off thousands of workers reportedly due to rapidly increasing energy prices. Media scrutiny of the issue is increasing. Politicians are actively seeking solutions and have opened their doors to discussing recent research showing the property sector can play a part in the solution.
The report, “Protecting industry, jobs and household budgets as the gas runs out” shows space heating buildings and hot water is on track to use 26% of all gas by 2026. Getting off gas and off inefficient heaters can free up to 40% of current gas production. There are signals that electricity supply is likely to be at risk of not fully meeting demand next year. We have an electricity challenge also however reducing demand through more efficient homes and buildings can help.
Usefully moving to heat pumps and demand flexibility as proposed by our research paper saves around 6-10% of our electricity generation delivering enough energy to power 500,000 homes and saves kiwi households $1.5bn. Why is that? Well, heating buildings and hot water is by far and away the largest energy load at peak time. Heat pumps can deliver this energy 70% more efficiently.
As Minister Watts considers strategic solutions to the energy crisis which some commentators are saying is “deindustrialising NZ”, our buildings provide a great opportunity for some win-wins. As Marcos Pelenur, the CEO of EECA set out, the above strategy is what the EU has done successfully when faced with a similar gas supply crisis. It delivered savings of 6% of electricity supply.
We’re grateful to the supporters of the report - the Major Electricity Users Group (MEUG), Consumer NZ, Simplicity, Octopus Energy, Wood Processors & Manufacturers Association (WPMA), and Common Grace Aotearoa.
Reducing risks and lower finance costs
Spring is here and warmer temperatures are on their way. Last year over 70 builders and developers certified projects to Homestar. We’re continue to see new drivers of uptake. The NZGBC is working with builders who want to reduce their risks of having to return to homes to rectify overheating or moisture issues. Returning to a previous job to attempt to make amends is time consuming, can damages reputations, and can delay work on the next project.
Modelling homes, as required by Homestar, can manage that risk, giving builders confidence and building reputations for delivering high quality, comfortable homes. Banks are also supportive – offering substantial savings on development finance for green registered homes, allowing builders to make large savings on their development costs.
Updated guidance for sustainable finance – recognising 4 star Green Star projects
With spring cleaning going on we’ve and reviewed the sustainable finance guide. I’m super excited about the launch of our new sustainable finance guide. Version two is out this week. It opens up more opportunities for lower interest finance for a wider range of buildings and communities. Thank you to all the banks, developers and property professionals who have participated in the review over the last four months.
More ways to earn CPD points
October is shaping up brilliantly with training courses for Homestar, Green Star, Green Star Performance and NABERSNZ, a webinar jumping into responsible products, plus we’re in Hawke’s Bay and Nelson for in-person Green Speak events.
We can’t close out 2025 without a trip to Wellington. See you on Wednesday 26th at BNZ Place, a leading example of sustainable design achieving 6-star Green Star.
So, there you have it buildings as the caped crusader, reducing risks for new build homes and a tonne of new avenues to enable lower interest sustainable finance. Spring has sprung.