THE AUSTRALIAN GOVERNMENT'S ENERGY EFFICIENT HOMES PACKAGE

Media release, 3 February 2009

What it means for you...

The Australian Government's Energy Efficient Homes Package is a $4 billion package to improve the energy rating of Australian homes - cutting their energy waste, making them more comfortable and helping home owners save up to 40 per cent on their electricity bills.

Under this program the Australian Government is offering:

free ceiling insulation worth up to $1,600 to all Australian home owner-occupiers of currently uninsulated homes; or
a $1,600 rebate on the costs of installing solar hot water systems
help for renters, with a rebate for landlords on the costs of insulating their rental properties.

The insulation and the solar hot water programs are not means-tested (no income limits).

Insulation is the simplest, most effective and cheapest way to make your house more energy efficient and keep it cooler in summer and warmer in winter. The Government estimates that up to 40 per cent of Australian homes are not insulated.

Frequently asked questions

Am I eligible for more than one component of the package?

Under this new package, from 1 July 2009, you can claim the $1,600 rebate for for Insulation or solar hot water, depending on your needs.

However if you have already claimed the Australian Government's previous means-tested solar hot water rebate of $1,000, you will still be eligible for ceiling insulation.

You can also access any available state program - and you will be eligible for other programs as they roll out, such as the Green Loans program.

Can I apply for more than one rebate?

No. Under the Energy Efficient Homes Package, you can claim either free insulation or the rebate for the solar hot water, depending on your needs.

What about the solar panel rebate?

The current rebate for solar panels offered under the Solar Homes and Communities Program (which will transition in mid 2009 to the new Solar Credits program announced by the Government in December 2008) is not affected by the new insulation or hot water programs.

Insulation

Who is eligible?

You are eligible for free ceiling insulation if you:

are a home owner-occupier - that is, you live in your own home;
don't already have ceiling insulation;
are installing insulation in an existing home on or after 3 February 2009 (excludes new homes or extensions to existing homes)
are an Australian citizen or permanent resident aged 18 years or over;

How will the program work?

After 1 July all you will need to do is ring 1800 808 571 and make a booking. The call centre will take your details and confirm your eligibility and arrange for a properly-trained installer to visit your house, assess your insulation needs, and install it for you.

As an interim arrangement, owner-occupiers who do not currently have ceiling insulation and who self-organise its installation between the date of the announcement of this package on 3 February 2009 and 30 June 2009 will be able to seek reimbursements of their costs up to a maximum amount of $1,600.

When does it start?

While the program commences on 1 July 2009, households that install ceiling insulation from the announcement on 3 February 2009, will be able to seek reimbursement up to a maximum amount of $1,600.

So, if you install insulation between 3 February 2009 and 30 June 2009, keep your receipts. Guidelines outlining how to claim your refund will be available by 26 February by calling 1800 808 571 or at the website - www.environment.gov.au/energyefficiency

Can I seek reimbursement for new ceiling insulation installed prior to 3 February 2009?

No. Unfortunately households that installed insulation prior to 3 February 2009 are not entitled to seek reimbursement under the Insulating Australian Households Program, but they may still be eligible for the increased Solar Hot Water Rebate.

Can I install the insulation myself?

No. The insulation must be installed by a registered business operating in the installation of thermal insulation.

What type of insulation can I get?

You can choose from a wide variety of ceiling insulation as long as it meets the relevant insulation standards for your locality.

For further information about standards, please visit your state or territory government website. (Information will also be available in the Program Guidelines, available from 26 February 2009 on www.environment.gov.au/energyefficiency)

For an average sized house, you can expect insulation to cost around $1,200.

What about insulation for floors and walls?

This program only covers the cost of ceiling insulation. If you can afford it, insulating floors and walls is an excellent way to boost your home's energy efficiency and it's something you may consider investigating under other Australian or state government programs.

For example, under the Australian Government's Green Loans Program you may be able to access a low interest loan to install solar, water saving, and energy efficient products.

Are rebates available for new homes or those which are rebuilt?

No. In order to maximise the environmental outcomes of the program, new houses are not eligible under this program for installation of ceiling insulation because most states and territories implemented either through the BCA or independently, regulations which established minimal thermal requirements for residential buildings. Houses that are rebuilt are classed as new houses and therefore are not eligible for assistance.

How long will it take to have the insulation installed?

The Government will work closely with industry partners to minimise delays. The aim is for every eligible household to have ceiling insulation within 2 years.

Can I access these programs for more than one property?

The insulation is for owner-occupiers, so you can claim for your primary residence but not, for example, for your holiday house or investment properties.

How will the program be monitored so that we are not overcharged or insulation prices don't increase?

The program includes a rigorous audit and compliance component. At least 2% of all installations will be audited. To receive the insulation you will need to agree to permit auditors to access your premises as required. Further information will be available in the Guidelines (available on 26 February 2009).

Please register online so that we can notify you of program details as soon as they become available.

I already have old insulation in my ceiling, can I access the program to replace this?

No, the assistance is only available for those homes without ceiling insulation.

How do you address concerns that insulation will be laid on top of contaminated or old insulation?

The assistance is only available for those homes without existing ceiling insulation.

Solar Hot Water Rebate

What is the Solar Hot Water Rebate?

The Solar Hot Water Rebate component of the Australian Government's Energy Efficiency Homes Program provides rebates of $1,600 to eligible applicants to install solar and heat pump hot water systems in existing homes.

The new hot water system must replace an electric storage hot water system which are the most greenhouse intensive of household hot water systems and generate the largest amount of greenhouse gas emissions.

The rebate encourages switching to alternative hot water technologies by addressing the up-front cost barriers to climate friendly systems, which also deliver low operating costs for the household.

The rebate is to help households replace existing electric storage hot water systems. Rebates are not available for replacing older solar or gas hot water systems.

When can I apply for a rebate?

The rebate is offered from 3 February 2009 until 31 March 2012, subject to the availability of funds for solar hot water systems installed from the 3 February 2009.

No applications will be accepted after 31 March 2012. Applicants must apply for the rebate within six months of their new solar or heat pump hot water system being installed.

What is the deadline for applications?

Applicants must apply for the rebate within six months (184 days) of installing an eligible system.

Who can apply for the rebate?

Applicants for the rebate must be the owner or tenant of the dwelling where the system was installed.

The application process is simple and straightforward and is completed at the time the new hot water system is being installed.

Suppliers and installers of solar hot water systems cannot apply for the Australian Government Solar Hot Water Rebate Component on behalf of their customers.

Government Agencies or occupants of public housing are not eligible for this rebate.

How do I claim the solar hot water rebate?

Rebates of $1,600 will be available to home owners that have not already accessed the Insulating Australian Households rebate.

Can I apply for the rebate if I am renting?

Yes. The system for which a rebate is being claimed must be installed at a principal place of residence. An applicant can be the owner or the tenant of the dwelling.

A tenant should not install a system without approval from the owner of the dwelling.

The sharing of any costs is a matter for the landlord and the tenant to negotiate.

Regardless of whether you are an owner or a tenant, all other eligibility requirements must be met.

If my system was installed before the 3 February 2009, can I get the new rebate?

No, unfortunately if your system was installed prior to 3 February 2009, you are only entitled to the rebate that was available at the time (i.e. means tested $1000 rebate).

I installed my system before the 3 February 2009 can I still apply under the $1000 rebate.

Yes, provided you meet the eligibility requirements (i.e. $100,000 means test).

Applications for the previous $1,000 rebate will be accepted until 2 August 2009.

Are rebates available for new homes or those which are rebuilt?

In order to maximise the environmental outcomes of the program, solar hot water systems installed on new houses are not eligible for the rebate. In comparison to existing housing stock, new homes are generally more energy efficient. Some state governments also regulate the energy efficiency of hot water systems installed in new homes.

Furthermore, it is more expensive to install energy efficient hot water systems onto existing homes than onto new homes.

Houses that are rebuilt are classed as new houses and therefore are not eligible for the rebate.

The Australian Government provides an incentive to all households to install climate friendly hot water systems in the form of renewable energy certificates (RECs). RECs are assigned by the Office of the Renewable Energy Regulator as part of the Renewable Energy Target scheme and reflect the deemed value of equivalent renewable energy generation over a ten year period.

These certificates are tradable and commonly provide a discount of over $1,000 from the up front cost of the average solar hot water system.

Can I still apply for other State or Territory rebates?

Yes. An application for the Australian Government Solar Hot Water Rebate Component will not be affected by any rebates that other governments may offer. For details on other rebates, you will need to follow up with your relevant state or territory authority.

Can I get the rebate for a system I install on my investment property?

Yes. The system for which a rebate is being claimed must be installed at a principal place of residence. There is no requirement that this is the applicant's principal place of residence. An owner may apply for a rebate on more than one property.

The sharing of any costs is a matter for the landlord and the tenant to negotiate.

Regardless of whether you are an owner or a tenant, all other eligibility requirements must be met.

Are rebates available for holiday homes?

Rebates are not available for holiday homes. To ensure the largest environmental benefit will be achieved, the rebate program has been designed to replace electric storage hot water systems in principal places of residence.

Is the rebate means tested?

No

How will the payment be made?

Payment is made by electronic funds transfer into the bank account of successful applicants. Applicants must be the owner or tenant of the dwelling where the solar or heat pump hot water system was installed.

The applicant provides a bsb and bank account number and the funds are directly deposited. Bank details will only be used to make the payment. Storage and disposal of bank account and other personal details will be managed in accordance with the Privacy Act 1988.

What is my BSB and bank account number?

A BSB number is a unique 6-digit code that identifies the bank/financial institution and branch where your bank account is held. It can generally be found on your bank statement.

Your bank account number can also be found on your bank statement. Bank account numbers are always nine digits or less. They are not the 16 digit number that appear on your credit/debit card.

It is important that you enter the correct BSB and account numbers, otherwise payment cannot be processed.

If you are still unsure, your bank or financial institution will be able provide you with your bank account and BSB number.

When will my payment be credited to my account?

For successful applicants payment will be credited dire
ctly to their Australian bank account within 8 weeks of receiving a completed and eligible application form.

What is a solar retrofit and why isn't it eligible for the rebate?

Solar water heater retrofit kits are used to add solar panels to existing electric off-peak boosted tanks. Conventional tanks are not designed to be connected to solar collectors so retrofit kits are not as effective as a water heater designed specifically for solar, however, significant savings can still be made.

The Solar Hot Water Rebate Program provides rebates for solar and heat pump hot water systems that replace an existing electric storage hot water system. In order to be eligible for the rebate the solar or heat pump system must be a new and complete hot water system that is eligible for at least 20 renewable energy certificates (RECs).

RECs are assigned by the Office of the Renewable Energy Regulator as part of the Renewable Energy Target (RET) scheme and reflect the deemed value of equivalent renewable energy generation over a ten year period.

The RET scheme does not allow individual parts of hot water systems to be tested separately because the efficiency of the total system can vary greatly with the effects of different ancillary parts and their installed arrangement (as a result solar water heaters currently eligible for RECs are complete systems).

For this reason, a 'retrofit' system that is based around a previously installed component is not eligible for RECs and therefore not eligible for the Solar Hot Water Rebate Program.

Why does a licensed installer need to sign my application form?

As part of the application process we require proof that you are replacing an existing electric storage hot water system and have installed a hot water system that is eligible for 20 renewable energy certificates or more.

The installer can certify this and can also provide the tank serial number which is not always easy for the applicant to obtain.

MORE INFORMATION