Solar hot water wins more cash

Age
Wednesday 4/2/2009 Page: 10

THE Government has added a $507 million increase to the solar hot water rebate to the household sector of its stimulus package. The increase, to be paid over 3'/ years, conies on top of the $3.3 billion to be spent on ceiling insulation in homes. The solar hot water rebate will rise from $1000 to a maximum $1600 until February 2012.

The Government will also remove the means test for the program, previously limited to households earning less than $100,000 a year. The changes mean the program, initially costing $258 million, will now cost $765 million. However, households will have to choose between the insulation and the solar hot water program. While the Government has not given an estimate of the uptake of the solar hot water rebate, it is estimated the $765 million budget can help offset the cost of about 500,000 systems, which retail for between $1400 and $4000.

Environment Minister Peter Garrett told Parliament the overall $3.9 billion in "green stimulus" would provide relief for struggling households and reduce greenhouse gas emissions by offsetting household energy use. However, environment groups were generally lukewarm in their reaction to the package. While supporting the insulation program, they wanted more in green economic measures to match other stimulus packages overseas.

Phil Freeman from the Australian Conservation Foundation pointed to newly elected US President Barack Obama's $820 billion stimulus plan, containing $115 billion in green stimulus, which Mr Freeman said was far broader than Australia's efforts. The Rudd Government is still a bit piecemeal in their approach to green economic packages," he said. Mr Freeman also noted a report by HSBC released last month that showed the average share of "green stimulus" in the 15 other countries with stimulus packages is 14%.

Green stimulus made up 9% of the package announced yesterday. Greens leader Bob Brown said his party would seek to ensure that total of almost $20 billion in other housing and construction investment announced in yesterday's package would come with energy efficient conditions. The insulation program will insulate 2.2 million homes free and double the rebate for rental properties to $1000 for another 500,000 homes. The insulation industry welcomed the measures and expected the program will prop up falling demand in the sector.