Rinnai New Zealand Rinnai New Zealand Limited HydraHeat Hot Water Heat Pump

Finalist
Credits
  • Pou Auaha / Creative Director
    Rinnai New Zealand Team
Description:

The Opportunity

As environmental awareness among New Zealanders grows, so does the demand for home systems that are energy-efficient, sustainable, and future-ready. Water heating is a major contributor to household energy use — accounting for up to a third of energy consumption. With transition happening from gas to electricity, more than 80% of which is generated from renewable sources, the need for sustainable electric water heating solutions has never been greater.
There was a clear opportunity to innovate. We set out to design and manufacture a solution tailored to Aotearoa’s climate and values — one that would reduce environmental impact, support local jobs, and deliver real long-term benefits to homeowners.

Our Approach

HydraHeat was developed to address key barriers to hot water heat pump adoption: high upfront cost, installation complexity, and end-of-life waste. Current designed integrated systems require the full unit to be replaced when the refrigeration component fails, even though the cylinder often remains fully functional.
HydraHeat’s modular design solves this. The heat pump head and cylinder are separate components. If the head unit reaches end-of-life, it can be replaced independently — or the cylinder can continue operating as a standard electric water heater. This significantly reduces waste and extends product life.
The modular approach also makes the product easier to handle, transport, and install. Integrated units are large, heavy, and must remain mostly upright due to built-in refrigerant. HydraHeat’s modular design eliminates those challenges, requiring no specialised tools or handling equipment. It also allows for staged installation: a homeowner can install the cylinder first, then add the heat pump head later as budget allows.
HydraHeat also enhances performance through top-down water heating, delivering hot water faster than systems that heat uniformly from the bottom. The system includes a timer function to maximise use of off-peak rates or solar PV output.
Designed specifically for New Zealand’s coastal and variable conditions, HydraHeat uses high-grade corrosion-resistant materials and features advanced insulation to reduce heat loss. It is the only integrated heat pump system hot water cylinder that meets MEPS energy efficiency standards in New Zealand.

Relevant Outcomes

HydraHeat is designed and manufactured in New Zealand using sustainable processes such as in-house custom-forming of coil tubing — reducing outsourcing and overproduction. It complies with all key safety and performance standards, including AS 4020, AS/NZS 5125, AS/NZS 4692, and IEC 60335-2-40.
The system uses R290 refrigerant, a naturally occurring, ultra-low Global Warming Potential option, making it a much more sustainable choice than synthetic alternatives.
Each HydraHeat installation saves an estimated 3,000 kWh per year, cutting CO₂ emissions by approximately 1,134 kg. At 1,000 units per year, that’s over 1,100 tonnes of carbon emissions saved annually — more than 5,600 tonnes over five years.
HydraHeat is a smarter, more sustainable way to deliver hot water to Kiwi homes — locally made, future-ready, and built to reduce energy use, environmental impact, and installation complexity.