Insulation important to improved housing affordability
09/Nov/2007
A national program to retrofit ceiling insulation into Australia's uninsulated homes would make housing more affordable, the Insulation Council of Australia and New Zealand said today.
Dennis D'Arcy, ICANZ President, said that with rises in mortgage interest rates, the House Price Index, and expected increases in household energy costs, energy waste has become an increasingly costly burden for many householders.
"Two out of every five homes in Australia have no ceiling insulation making these homes wasteful of the energy used for heating and cooling," Mr D'Arcy said.
"Insulated homes are more affordable and liveable homes. By retrofitting ceiling insulation into the 2.7 million homes without it, Australian householders can save significant amounts of money on energy bills which can be redirected towards a deposit on a house, or used to pay off the mortgage sooner," he said.
Studies commissioned by ICANZ show that retrofitting insulation into the 40 per cent of Australian homes without it would deliver immediate and lasting benefits:
- savings to householders of $2.9 billion on household energy bills over the period 2008-2020 (or savings per retrofitted household of between $89 and $336 pa.)
- abatement of 2.4 million tonnes of greenhouse gases pa. (or over 100 million tonnes by 2050)
- savings of $250 million on new energy infrastructure
- reduction in electricity prices through delayed infrastructure spending
- increase in GDP of $894 million over the period 2008 – 2030
"With the forecast rise of air-conditioner installations in Australia, the dollars saved by ceiling insulation can be expected to make an even greater contribution to household budgets," Mr D'Arcy said.
Mr D'Arcy said that proposals of federal rebates for retrofitting insulation into uninsulated homes need to be undertaken on a comprehensive scale.
"There have been some very welcome policy initiatives announced by political parties which promise rebates for retrofitting insulation into uninsulated homes. To make a major improvement to housing affordability, and reductions in greenhouse emissions, Australia needs to mount a national offensive on uninsulated homes. We need a government program that aims at having all Australian homes, wherever possible, insulated within a three year period. The sooner we start, the sooner the benefits will begin to flow to householders and the environment," he said.
Mr D'Arcy has said that improving Australia's energy efficiency is a policy area where all election contenders should share common ground.
"The need to curb energy waste in Australian homes goes far beyond party politics to the very heart of the national interest," he said.
