Basix 40% very affordable
01/Jun/2006
The Insulation Council of Australia and New Zealand (ICANZ) today released findings of a study showing that the BASIX housing energy efficiency upgrade to 40%, planned for July this year, was very affordable. The independent study conducted for ICANZ by Ove Arup Pty Ltd investigated the cost implications of the current and proposed BASIX benchmarks for four typical residential property types in Sydney (houses, units, townhouses and apartments). Dennis D’Arcy, ICANZ President said, “We compared the estimated cost of BASIX energy savings measures from the Arup study, with the estimated purchase price of the dwelling types modelled. This showed that BASIX 40% would add only 0.5 percent to the purchase cost of the homes modelled, and 0.7 percent to the units modelled. “For Sydney’s home buyers this would have a minimal impact on housing affordability. In fact BASIX will make homes more comfortable and affordable over time”. For example, insulation is an important component in achieving BASIX because it is the most cost effective way to improve energy efficiency in buildings and the comfort of the home. In an average Australian home, ceiling insulation can save up to 25% off the heating and cooling bill and an additional 15% can be saved with wall insulation. Pay back for installing appropriate insulation correctly, depending on use and the type of heating and cooling, is estimated at less than four years, leaving more funds to pay back the home loan sooner. “Clearly, affordability is not a reason to postpone the planned BASIX upgrade in July this year, or to remove high-rise units from the upgrade,” Mr D’Arcy said. He added that many opponents to the BASIX 40% upgrade are including water savings measures in their costs estimates, which is misleading because the upgrade only involves energy efficiency. Australians are realising that improving the thermal efficiency of buildings also delivers real financial and energy savings benefits for the individual and the community. A recent Victorian government survey found that almost 90% of householders living in a 5 Star home for 12 months or more would definitely recommend a 5 Star rating home to others. As reported in ‘Money Magazine’ May 2006, a Brisbane based research analyst Michael Matusik found in a recent survey that new home buyers were prepared to pay up to 8% more for a home that provided greater comfort while providing savings on energy and water costs. NSW has a large stock of energy inefficient buildings, which will continue to waste energy for their 60-year average life expectancy. Without more energy efficient building stock NSW will continue to be a high per capita producer of greenhouse gas emissions – a leading cause of climate change. “That’s an economic, social and environmental legacy we can’t afford to ignore. Being so heavily dependant on coal fired electricity and now talking of new nuclear power capacity as an option to meet peak power demands, the first step must be to use current energy supplies more efficiently and stop the unnecessary waste. With so much evidence and best practice examples available, its clear the planned BASIX 40% should go ahead as a minimal step to curbing NSW burgeoning energy demand,” Mr D’Arcy said.