Like many countries New Zealand is moving towards renewable energy targets and has recently (November 2006) announced a revised solar hot water heating subsidy program that is being implemented through the Energy Efficiency and Conservation Authority (EECA). This paper describes the new program and reviews international policies regarding solar water heating to see which aspects have been effective in gaining an increased penetration of solar systems for water heating. In addition, the factors leading to successful policy implementation and the possible downsides of the 2006 New Zealand policy are discussed with regard to international experience. (c) 2008 Elsevier Ltd. All rights reserved.