Insulation quality improving, but not good enough

"The government is committed to insulating at least 188,500 homes by 2013, but as well as quantity, we are insisting on top quality installations that are safe and result in maximum performance," Minister of Energy and Resources Gerry Brownlee says.

The latest round of Warm Up New Zealand: Heat Smart home insulation audits reviewed insulation and clean heating work done on 478 homes during April.  It found three cases - less than 1 per cent of audited work - where potential safety issues existed, while 32 per cent had minor quality issues.

"In every case where an issue is found in an audit, it must be put right at the installer's expense, and where safety issues are discovered all other work done in the audit period by that installer is checked. 

"I have been told by the Energy Efficiency and Conservation Authority (EECA), which administers the programme, that the installers are pulling out all the stops to deliver a top quality programme and I will be watching closely to make sure this happens.

"I have made it clear to EECA that poor quality work by the installation companies will not be tolerated.

"This has been reinforced to the businesses delivering the work throughout the country through a number of sanctions and penalties imposed for poor performance.

"This is a good programme.  More people than ever before are getting their homes insulated and that is good for them, and good for the country," Mr Brownlee said.

Background

Numbers

43,430 households have benefited in the first 10 months of the programme.

Audit results

Quality and safety issues explained

Safety issues relates to insulation too close to a heat source, such as a downlight or extractor fan.  This creates a fire risk and is, obviously, completely unacceptable, resulting in sanctions for installers that if repeated will cause them to be dropped from the scheme.

Quality issues cover a range of areas where the insulation has not been fitted in accordance with the standard.  Issues range from very minor, such as missing labelling or an access manhole not covered, to more major flaws, such as gaps in the insulation. 

The majority of issues identified in the latest audit round were minor.

The number of houses with quality issues is dropping and the types of quality issues are also becoming more minor.

All potential safety and quality issues must be rectified by the installer at the installer's cost.

Measures in place to improve insulation standards

Since December last year, the Energy Efficiency and Conservation Authority (EECA) have:

• requested and received assurance from service providers that, where an audit identifies a covered downlight, all other homes with downlights insulated during the same auditing period have been checked and there are no further issues
• withheld payment to service providers until work is done to the required levels
• issued warnings to service providers for serious safety failures (ongoing performance issues could eventually result in termination of contract)
• insisted all companies undertake their own audit procedures that result in a signed Post Installation Audit document (PIA) and submit a copy with every claim for payment
• withheld payment until completed PIAs are submitted
• doubled the number of random EECA audits from 5% to 10% (EECA can also issue extra audits as necessary)
• provided education and communication to service providers to identify and resolve installation issues

Companies with warnings

Nearly all companies delivering the programme have, at some stage, been required to do remedial work because of varying quality issues identified during audits.

The following companies have been issued with a warning for a more serious issue, such as a safety issue:

• Community Energy Action
• Davies Heat ‘n Cool
• Energy Mad
• EnergySmart
• Energy Saving centre
• Metro Homes (Firezone)
• Righthouse
• Southtile Ltd
• Sustainability Trust
• Tasman
• Warm My Home Limited

Further failures by these companies could lead to the revocation of their contracts and status as Warm Up New Zealand: Heat Smart providers.

Details of the programme

Funding is available to help insulate homes, and install clean and efficient heating under the government's Warm Up New Zealand: Heat Smart programme.

Under the programme, 188,500 homes across New Zealand will become easier and cheaper to heat - and warmer, healthier and drier as a result.  The government has committed to spending $347 million over four years on the programme.  

Homeowners with houses built before 2000 are eligible for 33 per cent of the cost of installing ceiling and underfloor insulation, to a maximum of $1300.  Once insulation is up to standard, homeowners can get $500 towards a clean, efficient heating system.  There are higher levels of funding for Community Services Card holders.  For more information, visit www.energywise.govt.nz