The Government's new investments in energy efficiency will modernise Australia's existing housing stock.
Combined with existing regulations ensuring all new homes must have insulation, the initiative could result in almost all Australian homes operating at a minimum two-star energy rating by the end of 2011.
This time-limited program of initiatives will have three key components:
- First, eligible Australian owner-occupiers will be able to access free installation and supply of ceiling insulation (up to $1,600) through this program, saving a possible $200 per year on their energy bills.
- Second, there will be support for tenants in rental accommodation, with landlords able to access an increased rebate of up to $1,000 to install insulation in their rental properties.
- Third, the Australian Government will also help Australian households install climate friendly hot water technologies. Increased non means-tested rebates of $1,600 will be available to all Australian households (that have not already claimed the insulation assistance) to install solar and heat pump hot water systems to replace electric storage hot water systems.
Who Will Be Assisted and How Much is the Support Worth?
Insulating Australian households ($2.7 billion)
- All Australian owner-occupiers who do not currently have ceiling insulation will be eligible for the free installation and supply of ceiling insulation (up to $1,600 value) from 1 July 2009 until 31 December 2011 — accessible to owner-occupiers simply by making a phone call.
- As an interim arrangement, owner-occupiers who do not currently have ceiling insulation and who self-organise its installation between the date of this program's announcement and 30 June 2009 will be able to seek reimbursement of their costs (up to the $1,600 cap) upon commencement of the centralised insulation program — i.e. from 1 July 2009.
Low Emissions Plan for Renters ($612.5 million additional funding)
- The Low Emissions Plan for Renters rebate will be doubled to up to $1,000 for landlords with tenants to install insulation in their rental property — and will be available from the date of this program's announcement until 30 June 2011. The existing cap on the number of rebates will also be removed.
Solar Hot Water Rebate ($507 million additional funding)
- The Solar Hot Water Rebate will be increased to $1,600 and the existing means test will be scrapped so that it is available to all households with an existing electric hot water system that do not access the insulation components of the program and that install an eligible solar hot water or heat pump system — and will be available from the date of this program's announcement until 30 June 2012. Once installed, households could save $300 to $700 on their energy bills each year.
- Homeowners will be able to access either the insulation program or the Solar Hot Water Rebate.
Why is the Government focusing on insulation?
- Insulation for uninsulated households is typically the most cost-effective residential energy efficiency improvement. The benefits of insulation include additional comfort, up to 40 per cent reductions in heating and cooling bills, and reduced condensation on walls and ceilings leading to improved health outcomes, including a reduction in respiratory illnesses.
- Owner-occupiers and tenants of landlords who are able to access subsidised ceiling insulation through these programs could save around $200 per year on their energy bills.
How will this boost Australian jobs?
- The Energy Efficient Homes program will create new jobs in insulation manufacturing and installation. The Government will work with the industry to ensure job benefits are maximised.
- The enhanced Solar Hot Water Rebate will also create new manufacturing and installation jobs.
What are the environmental benefits of this program?
- If taken up by eligible households, the insulation components of the program could result in almost all Australian homes operating at a minimum of two-star energy rating by 2012.
- Overall, it is estimated that these new measures could result in the abatement of 4.7 million tonnes of carbon dioxide equivalent (Mt CO2-e) per year from the end of the program, and total abatement of 49.4 Mt CO2-e by 2020.
This will contribute to meeting Australia's 2020 target for emissions reductions under the Carbon Pollution Reduction Scheme.