
Residential -
As power prices continue to climb and sustainability shifts from a “nice to have” to a necessity, more homeowners are turning their attention to how their homes perform behind the scenes. Creating a more energy efficient home is no longer just about cutting costs on the monthly bill, it’s about smarter living, greater comfort year-round, and futureproofing what is often your biggest asset. From small, low-cost tweaks through to larger upgrades, the way a home uses and retains energy is fast becoming one of the most important considerations for modern living.
Paul Fuge from Powerswitch says energy efficient practices can save the average Kiwi household around $500 per year, and a lot of that comes from being on the correct power plan.
“90% of people are paying more than they need to because they're on the wrong power plan.”
“For example, I’m doing an assessment at the moment and their savings are around $2000 per year. What's happened is they had a lifestyle change, which is typical, but in lots of circumstances people are reluctant to change plan even after that.”
Fuge says the family bought a couple of EVs which have tipped them over from a low user to a standard user.
“They’re also on a flat rate which means they pay the same unit cost no matter when they use electricity. So, what they should do is move to a time of use plan because of the EVS, and how they would charge them overnight.”
“Conversely when it comes to gas usage, they’re now a low user, but they’re paying for connection charges as if they were a standard user.”
Fuge says the irony is they’ve bought EVs to try and be energy efficient, while still forking out for extremely high-power bills.
What also adds to the reluctance to switch plans is a common misconception that every power company charges the same prices.
“Many people think that all electricity is the same and that because it all comes from the same place why would the cost be different? But it actually is.”
Loyalty can sometimes also be a penalty for people, as they stick with the same provider and the same plan.
“Not only can there be a cheaper plan with a different provider, there's quite often a cheaper plan with your own provider.”
“There are some retailers that actively monitor customer usage and then suggest better plans for you, and that will be a requirement from the end of this year that they must do that. But a lot of people assume that's what's happening now, and it's just not the case.”
WHAT ELSE IS A DRAIN ON YOUR POWER BILL?
Fuge says aside from being on the wrong plan, another big drain on your power bill is hot water.
“That accounts for 30% of your household bill.”
“So, the biggest potential to save money is through any form of heating, but hot water is the number one.”
To help ease the load Fuge says a great place to start is with your shower including taking shorter showers and installing a low flow shower head.”
“That will save you quite a lot of money, and if you reduce your shower time to just five minutes, probably about $260 per person, per year.”
Fuge says the best way to find out if you need to restrict water flow is by doing the bucket test.
“Put a 10 litre bucket in the shower and if it fills up in less than a minute, then there's savings to be made there.”
“A replacement head costs $30 - $40, and they’re pretty easy to install.”
If you can afford to install one, Fuge says a great way to manage hot water flow is by installing a hot water heat pump.
“They're quite a big upfront cost, but they do reduce your hot water by up to 70% in cost.”
“So when you come to replace your cylinder, I would definitely have a look at them, especially if you're a larger household.”
As for other types of heating, Fuge says another drain is of course general heating and in-room heat pumps, especially ones that haven’t been cleaned.
“Cleaning the filters in your heat pump is really easy and makes a massive difference to the efficiency of the unit. It's a quick, five-minute job. You literally pop the front open, pull some things out and give them a quick vacuum.”
Its settings also play a lot into its efficiency.
“They've got a non-linear power consumption curve, which means it's a bit like revving your car. Any degree over the optimum range is then using a disproportionate amount of power.”
“That means that a 27 degree setting will use twice as much energy as a 20 degree setting.”
So if you want to warm up your home faster, the trick is to keep it at a lower temperature, but speed up the fan’s intensity.
Fuge says fridges are another large drain on your bill.
“Especially second fridges. Typically we buy a new fridge, and the Kiwi thing is to stick the old fridge out in the shed.”
“But the external temperature fluctuations it's dealing with while being really hot in summer and really cold in winter leaves it operating pretty inefficiently.”
WHAT INVESTMENTS CAN YOU MAKE TO BECOME MORE ENERGY EFFICIENT?
Fuge says the cheapest way to make energy at the moment requires a large upfront investment.
“Solar power is really worthwhile if you can afford it, and if your home is suitable there are actually lots of green loans that will definitely save your power bill.”
“As I’ve mentioned before, installing a hot water heat pump will also make a massive difference but it comes with a big price tag.”
When it comes to other appliances, Fuge says a worthy investment is also an energy efficient internal heat pump.
After that he says it’s essential to get onto the right power plan to suit these new items and investments too.
“There’s now plans called time of use and they reward behaviour change. Retailers typically purchase power at the wholesale rate and on a standard plan they’ll level out the cost throughout the day where you pay a flat rate.”
“Whereas some plans what they’ll do is charge you a higher rate between certain hours and at night they’ll charge a cheaper rate so that rewards households that can shift consumption.”
WHAT ARE THE BUDGET-FRIENDLY WAYS TO BECOME MORE ENERGY EFFICIENT?
Fuge says there are some other less expensive and convenient ways to make your house more energy efficient including:
Get rid of draughts
Light a candle and take it around your window edges, doors and vents. When the flame goes sideways or out, you’ve found a draught.
Tighten screws on door hinges and window latches to help close the gap.
Choose electric heaters with thermostats
Electric heaters are expensive to run but might be your only option. Make sure you get one with a thermostat to maintain an even temperature rather than continuing to make the room hotter and hotter.
Get a timer for your heater and your towel rails
Electric heaters that don’t have timers can be controlled with plug-in timers. Timers cost from as little as $10 and are available at most hardware stores. Like with a heat pump timer, programming your heater to come on earlier will reduce the temptation to turn up the heat.
Fake double glazing
If you want the effect without the big bill, you can buy DIY window insulator kits. All you need to do is cut the film to size and use a hair dryer to shrink it onto the window.
Check your cat flaps
Cat flaps are a major source of draughts. To improve the seal around the frame, unscrew the whole assembly, clean the area where it’s in contact with the door or wall, then screw it back in tightly. Then add a thin line of silicone sealant around the frame.
Get a rug
A rug is a great way to add another layer of insulation, especially if you’ve got wooden or concrete floors.
WHAT ARE SOME COMMON MYTHS SURROUNDING ENERGY EFFICIENCY?
Fuge says there are a lot of old wives tales about how you can save energy, one of them being turning your hot water cylinder off.
“Not only is it ineffective, it can also be dangerous. The danger is that Legionnaire's Disease can get into those cylinders and then that's really dangerous.”
Another one is how much power you actually save from turning all the lights off.
“People focus on the wrong thing, and it's not a bad thing to be conscious and turn lights off, but it's not the thing that'll save you money.”
With the most recent power price increases having clicked into effect at the start of April, Fuge says the best things you can do now to prepare for the winter months is checking your power plan, your insulation, your shower head and your heat pump to ensure they’re the most efficient version of themselves.
In the end, an energy efficient home isn’t built in a day, it’s shaped by a series of considered choices that add up over time. Whether it’s sealing in warmth, upgrading systems, or rethinking how energy is used day to day, each step brings both immediate gains and long-term resilience.
With the right approach, efficiency becomes less of a project and more of a mindset, one that pays off not just in savings, but in a home that feels better to live in, now and into the future.