Hot topic in the news at the moment is the furore surrounding some of the government’s environmental initiatives. The $3.9 billion energy-efficient homes package – The Green Loans program – is one of those in the spotlight, but what is really surprising is just how few people are contemplating making use of it.
The Australian Government’s Green Loans Program is currently available to all householders – renters, owners, or landlords alike. It offers each household the opportunity to:
1. get a free, independent Home Sustainability Assessment and report (valued at around $250);
2. access to a subsidised Green Loan of up to $10,000, for up to four years, to implement some or all of the changes recommended in the assessment report e.g solar hot water, new energy efficient white goods etc. (essentially the government pays a subsidy to the participating financial institution to reduce the cost of the loan for the applicant –making it in effect an interest free loan)
The key outcomes the Program hopes to deliver are the reduction of greenhouse gas emissions and water consumption in existing homes via:
* the engagement of households in reducing the environmental impact of operating their Home.
* a recognised industry of expert assessors providing tailored information and guidance on energy and water saving actions.
* a research industry analysing the environmental impact of Homes and Households.
Under Pressure
The scheme is currently under pressure as more than 10,000 have signed up as assessors against the Environment Department’s original estimate of 800. It was envisaged that Assessments would be available until 31 December 2012 or until funding was exhausted (whichever came first) – now it’s looking very likely that exhaustion will come first!
Tom Arup, writes in the Sydney Morning Herald that “the Government subsidised household green audits, all 360,000 of them, were supposed to take four years to complete. But 205,000 have already been booked, and at 22,000 a week it is likely the scheme will be exhausted by April”. In fact the government’s own website proudly states, “as of 7 February 2010, over 235,000 free home sustainability assessments had been booked under the program.”
Once an assessment is carried out, the household then has the opportunity to take up a zero-interest loan, subsidised by the Government. The idea is to encourage people to make changes to where they live, however it seems that so far only 1,000 of 75,000 loans have been taken up.
As the subsidy is likely to be exhausted soon, many assessors are now competitively marketing their services in a bid to be the first to reach householders. Rather than assuage, this action is likely to drain the government funding even sooner. Now Peter Garrett is being called to extend the life of this besieged program, with fears of thousands of job losses – and with such a poor conversion rate (from assessment to loan uptake) something needs to be done if the government is to deliver any meaningful result from this stimulus.
It has not yet been announced or in any way promised what will come after the Green Loans Program subsidy, though there are other initiatives such as Green Start, and eventually Mandatory Disclosure which has already been introduced in ACT and QLD, and is proposed in NSW in 2011.
Advice to householders – get in quick. Advice to assessors – have a back up plan prepared and stay informed.
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