Changes to the Federal Insulation Rebate

The Government has announced a series of changes to the administration of the environmental programs to boost safety and improve environmental performance.

The changes announced by the Government on Friday 19th February 2010 include:

  • The establishment of a new household Renewable Energy Bonus Scheme to replace the Home Insulation Program and the Solar Hot Water Rebate.
  • Significant changes to the Green Loans scheme to boost the effectiveness and sustainability of the scheme.


A new household Renewable Energy Bonus scheme

A new household Renewable Energy Bonus Scheme will assist households save money on power bills and reduce their carbon emissions. This new Scheme will replace the Home Insulation Program and the Solar Hot Water Rebate Program both of which have been discontinued as of close of business Friday 19th February 2010.

The Government’s focus is on the safety of households and tradespeople who will both benefit from the operation of this new scheme. Under the household Renewable Energy Bonus scheme households will be able to receive a rebate for the installation of ceiling insulation or a solar hot water system or a heat pump. $1000 rebates will be available for ceiling installation and solar hot water systems and $600 rebates for heat pumps systems.


This scheme will institute several key changes to the delivery of ceiling insulation including:

  • Householders – rather than installers - will claim the $1000 rebate directly through the Medicare system.
  • Introducing a new registration scheme requiring all installers to reregister, pay a cash bond, show evidence of meeting the training and skills requirements and provide certified quality assurance and occupational health and safety plans.
  • Introducing a strengthened compliance regime in concert with State and Territory occupational health and safety and fair trading authorities.

It is intended that the insulation component of the Renewable Energy Bonus scheme will come into operation by 1 June. The Government’s objective remains to see insulation installed in up to 1.9 million homes, including those already installed under the discontinued Home Insulation Program, to be completed by 2011.

The Government will continue to roll out an existing electrical safety inspection program of all homes that have had foil insulation installed under the Program. The Government will also be prepared to check as many houses as necessary which have insulation installed under the Home Insulation Program. The Government will also establish a new Home Insulation Program Review Office to handle all complaints and inquiries and immediately address risks created by unscrupulous operators and will appoint an independent reviewer to conduct a review of the Home Insulation Program design, implementation and delivery.