Insulation program would fail on lower rebate
03/Nov/2009
The Insulation Council of Australia and New Zealand (ICANZ) today said that any further reduction in the insulation rebate below a maximum of $1200 would see the Energy Efficiency Homes program fail.
Mr D’Arcy, ICANZ CEO said, previous experience with lower rebates offered by state governments had marginal take up because of the cost disincentive for homeowners and landlords.
“The Federal Government’s program specifically targets a long standing market failure which has resulted in nearly 40 percent of Australia homes being uninsulated and unnecessarily wasting energy and money for householders. This program is designed to address this shortfall of over two million uninsulated homes and therefore the incentive must be geared accordingly.
“Many companies have invested heavily in gearing up capacity to meet expected demand generated by up to a $1600 incentive. Further reducing funding below the $1200 would be irresponsible and send the industry into disarray, with resulting job losses and planned investment.
“This much needed economic stimulus is still required to maintain the jobs that have been preserved and created under the program,” Mr D’Arcy said.
“At a $1200 level of funding, we believe the program is still viable because any small incremental costs incurred by homeowners can be recovered quickly in the savings achieved on energy bills. And by correctly installing the right insulation, these savings will continue on for the life of the home.
“There are still more than a million homes in Australia that potentially are without insulation and we expect them to take up this unique opportunity to offset rising energy costs while the $1200 rebate is still on offer.
“Once installed correctly, ceiling insulation improves comfort and general wellbeing of home occupants. It also reduces greenhouse emissions and will save hundreds of dollars on heating and cooling costs for the life of the building,” Mr D’Arcy added.
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