At Daikin New Zealand, we’re excited to share a glimpse into the future of home energy: our new CO₂ hot water heat pump, designed specifically for New Zealand homes. Soft-launched at our dealer conference in Taupō last month, this product brings next-generation energy performance to a part of the home often overlooked in the sustainability conversation — hot water.
Why Hot Water Deserves Your Attention
According to research from EECA (Energy Efficiency and Conservation Authority)*, hot water heating accounts for around 28% of residential energy use in Aotearoa, making it the second-largest energy user in most homes. Yet, water heating is often left out of the conversation when we talk about future-proofing our homes.
Right now, most households still rely on traditional gas or electric resistance systems — technologies that haven’t changed much in decades. And while heat pump water heaters are a proven solution, there are only about 12,000 installed in New Zealand, compared to an estimated 2 million electric and gas systems.
There’s a huge opportunity here — and it starts with switching to smarter, cleaner technology.
Introducing the CO₂ Heat Pump
Our new CO₂ hot water heat pump uses a natural refrigerant (CO₂) to draw energy from the air and deliver hot water efficiently, even in colder conditions. What sets it apart?
- High Efficiency: CO₂ systems perform reliably across a wide temperature range — great news for colder parts of New Zealand.
- Low Environmental Impact: CO₂ is a natural refrigerant with ultra-low global warming potential.
It’s a small box with big climate impact.
New Builds and Retrofits – Both Count
Whether you’re working on a new build or looking to upgrade an existing home, the opportunity is now.
Recent reports*** indicate that households connected to reticulated gas are facing average price increases of 10% to their energy bills, prompting many to consider more sustainable and cost-effective alternatives like heat pump systems.
For new homes, integrating a hot water heat pump from the start means smarter system design, space efficiency, and simplified compliance with energy codes.
For existing homes, replacing an old gas or electric cylinder with a heat pump is a powerful retrofit move — both for the planet and the power bill.
The Electric Homes report by Rewiring Aotearoa ** shows households could save up to $1,500 a year by switching to efficient electric technologies — and hot water is a big part of that saving.
On top of this, several New Zealand banks now offer green home loans or top-up incentives that can help finance upgrades to cleaner energy systems like hot water heat pumps. In some cases, homeowners may even qualify for co-funding through programmes like Warmer Kiwi Homes.
These upgrades also align with initiatives led by the New Zealand Green Building Council NZGBC — including Homestar and HomeFit, which promote healthier, more efficient homes — which Daikin New Zealand proudly supports as part of our commitment to raising housing standards across Aotearoa.
Let’s Rethink What Makes a Home "Efficient"
The conversation about energy efficiency in homes is expanding — and for good reason.
EECA’s insights show that households using heat pump hot water systems, along with other electric appliances, have lower running costs, better air quality, and lower emissions overall.
And for developers, builders, and consultants, this isn’t just about meeting minimum specs — it’s a chance to offer future-ready homes.
Want to Learn More? Let’s Talk.
If you’re working on a residential development, managing a housing portfolio, or just want to understand how our CO₂ hot water heat pump could work in your next project, we’d love to chat.
Drop us a message or get in touch with our team to learn more — and keep an eye out for our official launch later this year.
References
*EECA. (2023). The Impact of Electric Homes. https://www.eeca.govt.nz/insights/eeca-insights/the-impact-of-electric-homes/
**Rewiring Aotearoa. (2023). Electric Homes Report. https://www.rewiring.nz/electric-homes-report
***1news new zealand (2025) https://www.1news.co.nz/2025/04/18/gas-price-hikes-hit-households-and-commercial-growers/