Federal Government Environment Minister Mr Peter Garrett has recently replaced insulation and solar water heater rebates with a new scheme - the Household Renewable Energy Bonus Scheme.

Effective as of February 19, 2010, a national rebate of $1,000 is now available for solar hot water or insulation, and a $600 rebate is available for heat pump water heaters. Under this new scheme, consumers will need to pay for insulation work and claim their Government rebate through Medicare offices.

The Government believes this change will make consumers more particular about the credentials of installers, and the quality of their work, thus boosting the safety for households and workers whose employment is funded by these important environmental programs.

Mr Garrett announced he plans to completely reshape the insulation and solar hot water programs, and bring big changes to the Green Loans scheme.

The announcement follows a recent media blitz surrounding the risk of electrical fires in homes which have poorly installed roof-top solar photovoltaic panels (or solar PV).
 
“Government environmental rebates are still on offer for homeowners to capitalise on, and the new scheme will help rule out shonky operators who have taken advantage of the environmental boom. Homeowners should do their research and deal with local, well established companies, and be wary of unknown operators offering cheap deals. These changes will help put householders back in charge of the environmental products they install at home," says Mr Romano Bolzon, National Business Manager for EcoSmart Solar Hot Water Systems , Australia’s largest locally owned solar hot water company.

“The new Household Renewable Energy Bonus Scheme will also help householders continue to invest in green technologies and help Australia’s efforts for a transition towards a low carbon economy,” he added.

A solar water heater is the single best thing that can be done in the home to reduce energy costs. Hot water typically accounts for 30-35 per cent of the household energy bill and a solar hot water system will reduce that by up to 80 per cent.

Solar Hot Water has been included in the government’s Renewable Energy Target (RET) scheme, since its inception in 2001. With the introduction of Federal and State Government rebates, solar hot water heaters have achieved great success in the market, and have played a significant role in reducing greenhouse gas emissions.

Solar hot water systems can only be installed by licensed plumbers working to the Plumbing Code of Australia, therefore the industry is safe from claims of poor workmanship, which has plagued other environmental programs to date.

Since commencement of the $1,600 Federal rebate in February 2009, nearly 120,000 homes have installed a solar hot water system under the Energy Efficient Homes Package. Installing a solar water heater is equivalent to taking a car off the road every year, and comes at a time when electricity costs are forecast to rise by 15 per cent every year over the next three years.