The renovation opportunity with the highest ROI

The average Kiwi household is now dropping $200 a month on electricity at 33.89 cents per kWh. That’s a serious dent in your tenants’ wallets (and potentially yours if you cover utilities on any properties). Your next reno could slash that by 50%.

So, while you’re planning a kitchen remodel or bathroom upgrade, you should also consider the renovation opportunity with the highest ROI – energy efficiency upgrades.

Electric shock
Depending on where your properties are located, your tenants could be paying wildly different electricity rates. People in Kerikeri are getting absolutely hammered – paying a whopping 46% more than Cantabrians.

It’s about to get worse. The Commerce Commission has approved revenue increases for power companies, specifically Transpower and local lines companies, to allow for necessary investment in the electricity network. These increases will result in higher electricity bills for consumers, with an average monthly increase of approximately $10 for the first year of the five-year regulatory period. Some regions will see hikes of up to $25 a month.

Meanwhile, power providers like Contact, Meridian, and Mercury increased their standard prices by 5-15% between September 2024 and January 2025.

5 energy upgrades that will make your properties a hit with renters
When you’re knee-deep in renovation plans, here’s your ultimate energy efficiency checklist to future-proof your properties:

  1. Hot water pumps
    Hot water makes up a third of the average energy bill. Switching to a hot water heat pump can save your tenants about $280 annually. That’s an incredible selling point when marketing your property.

  2. Whole-home heat pump systems
    Nobody wants an ugly heat pump unit on their wall anymore. Modern options include:
    • Hidden units in cabinetry
    • Ducted central heating systems with discreet grilles
    • Combined heating/cooling and ventilation systems
    The average savings? $120 a year. But the real value is in the premium feel that helps you command higher rent.

  3. Ditch the gas
    If your property still has gas appliances, particularly for cooking, consider this mind-blowing stat: Switching to an induction cooktop could save your tenants $700 annually just by eliminating the gas connection fee.

  4. Futureproof with EV charging
    Even if your tenants don’t yet drive electric vehicles, having the wiring preinstalled for EV charging makes your property instantly more valuable to forward-thinking renters. As a bonus, it’ll save future renovation headaches.

  5. Rooftop solar
    Here’s a fact that’ll blow your mind: In 2008, a 3kW solar system cost $40,000 when power was 20 cents/kWh. Today, that same system costs only $8,000, while electricity has skyrocketed 75% to 35.36 cents/kWh.
    For a three-person household, solar pays for itself in about eight years, then delivers essentially free energy for another 20+ years. Most banks offer green loans with sweetened interest rates specifically for solar installations.

Smarten up
Smart landlords aren’t just thinking about granite countertops – they’re focusing on energy efficiency upgrades that:

  1. Make properties more attractive to quality tenants

  2. Command higher rents for “premium” energy-efficient features

  3. Future-proof investments against rising energy costs

  4. Potentially increase property values

So, before you knock down that wall or update those fixtures, ask yourself: “Am I missing the biggest ROI opportunity in my renovation plan?”
Your future self (and your bank account) will thank you.

Get your renovation thinking hat on and call 0800 GOODWINS to find an investment property ripe for an upgrade.