The federal government has still not responded to urgent calls to upgrade homes with quality insulation to reduce energy bills, improve health outcomes and reduce emissions.
The Insulation Council of Australia and New Zealand (ICANZ) has called on the federal government to allocate a small percentage of the $1 billion Household Energy Upgrade Fund to retrofit insulation into existing housing stock.
ICANZ CEO, Janine Strachan, said the funds could be made available through low interest loans managed by the Clean Energy Finance Corporation.
“The council is calling for direct rebates for retrofitting and low-interest green loans,” she said.
“As Australia experiences more extreme and unpredictable weather due to climate change, one of the simplest and most effective solutions is already within our ceilings, walls, and floors: insulation.”
State governments are currently leading the charge by providing funds and rebates for energy efficiency upgrades.
Victoria already provides funding for these initiatives while New South Wales is set to follow.
While the federal government has not formally responded to ICANZ, it has taken small steps to address Australia’s insulation problem.
Earlier this week $18 million was made available in joint funding from the Australian and NSW governments to upgrade 2,300 homes.
The initiative is part of a $175 million program jointly delivered by the Australian and NSW Governments to upgrade around 24,000 social housing homes by mid-2027.
Announcing the funds the Federal Minister for Climate Change and Energy, Chris Bowen, admitted Australia has some of the coldest and least energy-efficient homes in the developed world.
“Cooler homes in the hot months and warmer homes in winter lock in lasting bill relief and protection from international energy price spikes,” he said.
The upgrades will include a range of measures such as rooftop solar, reverse cycle air conditioning, energy efficient hot water systems, ceiling insulation, window shading and draught proofing, LED lighting and ceiling fans.
Research shows that poorly insulated homes are linked to respiratory illness, cardiovascular disease, and increased hospitalisations during temperature extremes.
“Locally manufactured insulation is shovel-ready climate resilience,” Strachan said.
"Financial incentives to install ceiling, wall, and underfloor insulation will deliver immediate comfort and boost local manufacturing and installation jobs.
“The government can promote thermal building upgrades first, to ensure solar arrays and batter systems can be sized effectively.”