Australian households will have access to discounted green loans for home retrofits of quality insulation and energy upgrades under the $1 billion Household Energy Upgrades Fund (HEUF) announced last week.
The Insulation Council of Australia and New Zealand (ICANZ) said in this first round, the Clean Energy Finance Corporation (CEFC) is unlocking $60 million through lender Plenti to support cheaper finance for insulation, rooftop solar, home batteries and other energy efficiency upgrades for Australian homes.
CEO of ICANZ Janine Strachan said, retrofitting insulation into older homes and making homes and businesses more energy efficient is one important way to ease cost of pressures.
“The federal government’s decision to unlock funds through the CEFC will help people with older homes and appliances that don’t meet modern energy standards to upgrade and keep money from leaking out the door,” Strachan said.
According to the government “Race for 2030” study a basic retrofit can save between 18 and 31 per cent on energy bills, and a comprehensive retrofit could save up to $1600.
The HEUF is expected to help more than 110,000 Australian households to lower their energy bills through making lower cost loans available.
This is the first allocation under the $1 billion fund established to turbocharge discount financing options for home energy performance upgrades, partnering with banks and other lenders on upgrading homes to keep them warmer in winter and cooler in summer.
“ICANZ believes that supporting the local manufacturing sector in energy efficiency will play a critical role in helping Australia achieve net zero by 2050,” Strachan said.
“We want to see the building fabric of existing Australian homes made more comfortable for their occupants, so they can have improved health outcomes, and reduce their heating and cooling needs and ultimately save on reduced energy costs.
“Improving the thermal building envelope of the home’s walls, ceiling, roof and floor with effective insulation greatly helps to reduce significant heat loss in winter and heat entry in summer; these features once installed will provide ongoing savings for the life of the build.”