"Heat pump water heaters are an established technology overseas which can provide another way for New Zealand homes and small businesses to reduce their energy costs," Mr Underhill said.

"EECA already provides $1,000 towards the installation of solar water heating in homes and small businesses, and this pilot scheme will allow the same grant for the installation of heat pump water heaters for a limited time.

"The pilot scheme will allow us to gather data so we can see how heat pump water heaters perform in a New Zealand situation, and the energy savings they are capable of generating."

Customers will get $1,000 back for installing eligible heat pump water heaters in their homes after 27 March 2009, and providing EECA with three separate monthly water and electricity meter readings, using meters provided by EECA. The scheme is expected to run for about six months.

EECA aims to encourage greater energy efficiency in New Zealand homes and businesses by providing clear and reliable information on effective technologies to reduce energy usage, alongside financial incentives where appropriate, Mike Underhill said.

"Thousands of New Zealanders have already made the switch to solar water heating with the help of EECA's programmes, saving money at the same time as reducing greenhouse gas emissions.

"These savings can be expanded by including new technologies, such as heat pump water heating, once they have proved their effectiveness."

Find out about heat pump water heaters and taking part in EECA's heat pump water heating funding pilot.

This article is taken from the Energy Efficiency and Conservation Authority (EECA)'s Media Releases, please visit the author's website at www.eeca.govt.nz.