Australian Government Insulation Rebates – Why Are They Paying For Ceiling Insulation?

The Australian Federal Government, as part of the Energy Efficient Homes Package, has committed billions of dollars to insulate Australia's homes. This will mean up to 2.9 million households will be able to install insulation in their roofs for free. Why does the government see insulation as a key priority? Why is insulation so important and how do you access the funding?

A range of factors have influenced the Australian Government to make such a major contribution towards insulating Australia's housing stock.

Firstly, ceiling insulation is the single greatest improvement one can make to improve both the energy efficiency and thermal comfort within the home. Your roof is responsible for around 25% of unwanted heat loss/gain in the home, forcing your heating and cooling systems to work overtime to keep your house comfortable. By reducing these losses through the installation of ceiling insulation, householders can save money on utility bills due to reduced demand for mechanical air conditioning systems. This in turn reduces your greenhouse gas emissions and makes your house more comfortable year-round.

Secondly, it is relatively cheap and easy to retrofit ceiling insulation. The Government rebate is capped at $ 1600 for owner occupied properties and $ 1000 for rental properties or holiday homes; It costs around $ 1200 to install ceiling insulation in the average Australian house. With the Government's rebate, most households will be able to gain ceiling insulation for free. Taking into consideration this low cost and the energy savings mentioned previously, ceiling insulation is a quick payback product - meaning the money saved due to reduced energy costs outweigh the initial outlay within around five years. Most Australian houses have pitched roofs with a roof space or attic, so access is not an issues for the installation of insulation. This makes retrofitting very easy in most cases and this is what keeps the cost so low.

The government recognize that encouraging the installation of ceiling insulation is a good way of stimulating the economy and future proofing the country. By promoting jobs in a field (the building industry) that would otherwise be at risk in a slowdown or recession of the economy, the Government are actively protecting jobs. The low-skill requirements for installers means that a range of businesses associated with the building industry can capitalize on the package with a minimal outlay. In terms of future proofing, the Government is investing in a more energy efficient society which will ultimately reduce energy demands, making it easier to reach carbon reduction targets and reduce the need for further energy production.

These points make an insulation rebate package a very appealing option for the Government as it represents an simple but (hopefully) highly effective approach both to helping meet carbon reduction targets and stimulating the economy.