How H1 Insulation Changes NZ Impact Energy Efficiency – And Why SIPs Are the Future

How H1 Insulation Changes NZ Impact Energy Efficiency – And Why SIPs Are the Future

Understanding MBIE’s Proposed Insulation Changes for 2024

The Ministry of Business, Innovation, and Employment (MBIE) has proposed updates to the H1 Energy Efficiency requirements for housing and buildings under 300m². These changes aim to clarify insulation standards in order to improve thermal performance for the least upfront cost. 

For architects, builders, and developers, these changes present a challenge: How can you future-proof designs while ensuring compliance with new insulation standards? By leveraging MBIE energy efficiency compliance strategies and innovative materials like SIPs, builders can create sustainable, high-performance homes that exceed regulatory expectations in NZ. (MBIE Consultation on H1 Energy Efficiency)

Key Takeaways from MBIE’s Proposed H1 Updates

1. Lower R-values default for timber framing – Claimed insulation performance levels from timber framing will decrease, meaning traditional building materials may no longer meet code without significant modifications.

2. Greater Focus on Airtightness – Insulation alone isn’t enough; ensuring minimal thermal bridging and airtight construction is crucial.

3. Sustainability and Energy Efficiency Goals – The updates align with New Zealand’s broader carbon reduction goals and sustainability initiatives.

4. Potential Cost Implications – Complying with new insulation requirements using conventional materials could mean higher costs and longer build times.

5. Timber Framing Loses Efficiency – MBIE now requires 38% timber content in traditional framing, reducing its effective R-value to just 1.6, significantly below SIPs.

6. SIPs Recognized as a Leading Solution – In the MBIE H1 Webinar on 10th February 2025, SIPs were highlighted as an effective option for meeting the new insulation standards.

Why Structural Insulated Panels (SIPs) Are the Best Solution

Traditional building methods often struggle to meet these evolving energy efficiency standards. SIPs provide a streamlined, high-performance alternative that naturally aligns with MBIE’s new insulation and airtightness requirements.

1. SIPs Easily Exceed the New R-Value Requirements

To illustrate the difference between SIPs and traditional insulation methods, here’s a side-by-side comparison of their effective R-values:

This comparison highlights why SIPs are an optimal choice for meeting and exceeding MBIE’s H1 insulation requirements while reducing thermal bridging and improving overall energy efficiency. SIPs consist of an insulated core sandwiched between two structural facings. This unique construction provides a high R-value per thickness, far surpassing traditional framing and insulation methods.

Sources: (Beacon Pathway Study, Beacon Pathway Extended Study)

2. Airtight Construction Without Extra Work

Unlike traditional insulation, SIPs create an inherently airtight building envelope. Since the panels are precision-manufactured and interlock seamlessly, they eliminate thermal bridging and air leaks – a key focus in MBIE’s updates.

• Fewer gaps mean better heat retention, reducing energy costs for heating and cooling.

• Greater airtightness is better when modelling thermal performance, for those using the modelling method.

3. Faster, More Cost-Effective Compliance

While traditional insulation methods are being downgraded in allowable default insulation levels, SIPs provide a straightforward compliance pathway. Since they combine structure and insulation in one, SIPs reduce build time and labour costs.

4. Future-Proofing Against Stricter Regulations

By choosing SIPs now, builders and homeowners won’t need costly upgrades in the future as energy efficiency standards continue to rise to meet the challenges of the 21st century.

How Builders & Developers Can Adapt to MBIE’s Changes

If you’re working on a new project, consider these steps to ensure compliance and maximize efficiency:

• Assess Your Insulation Strategy – Will traditional methods still meet code, or are SIPs a better investment?

• Plan for Airtightness – MBIE’s updates highlight the importance of air sealing. SIPs naturally achieve this without additional work.

• Consider Whole-Build Performance – Factor in windows, ventilation, and thermal bridging when designing for energy efficiency. Calculation method, or better still, modelling method allow you to optimise upfront cost vs compliance. 

• Leverage SIPs to Meet Code Efficiently – SIPs allow for a more streamlined approach to compliance, avoiding complexity and additional insulation layers.

FAQs: What This Means for Builders and Homeowners

Q: How do the MBIE H1 changes impact builders and homeowners? A: The new insulation requirements have the potential to increases costs for builders by reducing claimable R-values in timber framing, requiring builders to use higher-performing insulation solutions like SIPs to remain compliant.

Q: Do SIPs offer advantages over traditional insulation for H1 compliance? A: Yes, SIPs provide superior thermal performance, airtight construction, and ease of compliance compared to traditional timber framing, which now has an effective R-value of just 1.6.

Q: What are the cost implications of switching to SIPs? A: While the upfront cost may be higher, SIPs significantly reduce labor costs, construction time, and long-term energy expenses, making them a cost-effective solution in the long run.

Q: Can SIPs be used for both residential and commercial buildings? A: Absolutely. SIPs are suitable for a variety of building types, including residential homes, multi-unit developments, and commercial buildings, ensuring energy efficiency across sectors.

Q: How do SIPs contribute to sustainable building practices? A: SIPs improve energy efficiency by minimizing heat loss, reducing reliance on artificial heating and cooling, and cutting long-term energy consumption, aligning with New Zealand’s carbon reduction goals. Formance SIPs have a declare label and are made from recycleable materials. 

Q: Will SIPs automatically meet MBIE’s new insulation rules? A: Yes, SIPs exceed the proposed R-value requirements and offer airtight construction, making compliance easier.

Q: Are SIPs cost-effective compared to traditional building methods? A: While SIPs may have a higher upfront cost, they significantly reduce labor, construction time, and long-term energy expenses.

Q: How do SIPs improve energy efficiency? A: SIPs minimize heat loss through continuous insulation, reducing reliance on heating and cooling systems and lowering energy bills.

Take the Next Step: Future-Proof Your Builds with SIPs

For those looking for more details on MBIE’s proposed changes, you can review Appendix B: Proposed Changes to Verification Method H1/VM1. This document outlines specific adjustments to energy efficiency verification methods and helps clarify compliance pathways for builders and developers.

If you're a builder, developer, or homeowner looking for an energy-efficient solution that ensures compliance and lowers costs, contact Formance today to explore how SIPs can be integrated into your next project.

The MBIE energy efficiency updates highlight the need for smarter, more efficient building methods. SIPs offer a simple, effective way to exceed these new standards while delivering long-term performance benefits.

If you're a builder, developer, or homeowner looking for an energy-efficient solution that ensures compliance and lowers costs, contact Formance today to explore how SIPs can be integrated into your next project.