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Heat Pump Hot Water Cylinders Face New Energy Rating Standards Under MEPS Review

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EECA’s proposed minimum energy performance standards for heat pump hot water cylinders will likely eliminate up to 40% of current market models, forcing manufacturers to upgrade efficiency ratings or withdraw products entirely.

How to comply

It is a legal requirement for suppliers to register all heat pump hot water systems under the Energy Efficiency (Energy Using Products) Regulations 2002 before sale in New Zealand. Registration must include verified performance data meeting the proposed coefficient of performance thresholds.

Heat pump efficiency thresholds

3.2
Air-source minimum COP
4.0
Ground-source minimum COP
40%
Models potentially excluded
6 months
Transition period

Standards applicable

Heat pump hot water cylinders must comply with AS/NZS 4234 testing protocols for energy efficiency measurement. Standards can be purchased from Standards New Zealand to verify compliance with the new MEPS framework.

Which products are included

The revised standards cover all electric heat pump systems integrated with storage cylinders, including split and integrated units with capacities from 160 litres to 400 litres. Both indoor and outdoor hot water cylinders fall within scope.

heat pump hot water New Zealand

Which products are excluded

Gas-boosted heat pump systems and commercial units above 400 litres capacity remain outside the MEPS framework. Retrofit heat pump units for existing cylinder installations are also excluded from the initial rollout.

Performance requirements

According to EECA, the proposed minimum coefficient of performance stands at 3.2 for air-source models and 4.0 for ground-source systems. These thresholds align with Energy Star certification levels used in Australia.

NZ Building Code requirements

Heat pump hot water installations must meet Building Code Clause G12 for water supplies and Clause H1 for energy efficiency. Compliance requires verification that systems achieve the specified performance ratings under standardised test conditions.

Registration process

Suppliers must submit technical documentation through the Product Registration Database, including test certificates, energy labels and installation specifications. Non-compliant products face immediate withdrawal from the voluntary registry.

Market impact projections

Industry analysis suggests the standards will eliminate budget models with coefficient of performance below 3.0, potentially reducing consumer choice but driving down long-term running costs. Previous similar MEPS implementations for appliances saw 30-50% of existing models discontinued within 18 months.

Implementation timeline

The consultation period closes June 2026, with final standards taking effect from January 2027. Existing inventory can be sold until June 2027, providing a six-month transition period for retailers and installers.

Heat pump hot water efficiency standards face major overhaul as EECA reviews minimum energy performance requirements

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EECA’s comprehensive review of heat pump hot water efficiency standards could raise minimum performance thresholds by 15-20%, potentially removing lower-performing models from the NZ market by early 2027.

How to comply

It is a legal requirement for suppliers to register all heat pump hot water systems under the Energy Efficiency (Energy Using Products) Regulations 2002 before sale in New Zealand. Compliance testing must demonstrate adherence to both current and proposed minimum energy performance standards.

Proposed efficiency changes

15-20%
COP increase
30-40%
Models affected
3.8
New minimum COP
12 months
Transition period

Standards under review

The proposed amendments target AS/NZS 4234 testing protocols and introduce stricter coefficient of performance (COP) requirements. Standards documentation can be purchased from Standards New Zealand for detailed technical specifications.

Which products are affected

The review encompasses all residential and light commercial heat pump hot water systems with storage capacities between 160-400 litres. Heat pump hot water cylinders currently meeting minimum thresholds may require efficiency upgrades to remain compliant.

heat pump hot water efficiency New Zealand

Performance thresholds

New minimum COP requirements could rise from 3.2 to 3.8 for temperate climate zones, with additional seasonal performance factors under consideration. According to EECA, the changes aim to align New Zealand with international best practice standards.

NZ Building Code implications

Building Code Clause G12 water supplies may require updated compliance pathways to accommodate enhanced efficiency requirements. Territorial authorities will need guidance on assessment criteria for building consent applications.

Market impact analysis

Industry estimates suggest 30-40% of current models may fail to meet proposed standards, potentially affecting supply chains and pricing structures. Consumer choice could narrow initially before manufacturers adapt product lines.

Implementation timeline

EECA consultation closes June 2026, with final regulations expected by October 2026. A 12-month transition period would allow existing stock clearance before mandatory compliance from January 2028.

Registration requirements

Suppliers must update product registrations to reflect new performance data and compliance certificates. Non-compliant products face removal from the Energy Rating Label database and prohibition from sale.