Home Insulation Scheme Downgraded

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Monday 2nd November 2009

While fully supportive of the idea to get as many older houses fitted with ceiling insulation, I believe the the Federal Government’s Home Insulation Scheme is seriously dodgy; and now the Feds are downgrading the amount of the subsidy from a maximum of $1600 to $1200. While the argument is based on a winding back of the stimulus funding as our economy picks up, it is a convenient excuse to cover up for a very poor program design and limiting the damage, especially as caused by installers claiming the full rebate by overstating the area of insulation installed.

As I see it the problems are:

  • Flooding the industry with unqualified installers (one of whom was killed by electrocution by putting a reflective foil staple through a cable).
  • Importing of insulation that does not meet Australian Standards
  • Poor installation practices such as:
    • Leaving bags of insulation in ceilings uninstalled
    • Insulating around access hatches so it looks like insulation has been installed
    • Scattering batts generally in the roof
    • No neat fitting between ceiling members or cutting to fit odd spots
    • No overlapping at tops of walls
    • Not insulating to the full width of the ceiling (its hard to see that last row of batts around the edges from an access hatch
    • Covering halogen light fittings, causing house fires
  • Collusive tendering between individual contractors to get around the two quotes requirement
  • Installing less than $1600 worth of insulation but overstating the area and charging $1600 (losses to the government are substantial from this rort alone)
  • Good insulation companies in the industry affected by competition from dodgy installers
  • False claims about job creation (depending on whether you regard jobs for visiting backpackers as job creation)

What a mess! It wouldn’t surprise me if this program is canned within six months altogether. At least the $1600 option for solar hot water systems still remains. And there is a lesson in this: the solar rebate option must be paid for by the householder and a rebate sought; the insulation rebate is handled at point of sale, thus allowing for all the above corruption to emerge.

This is a classic case of a desirable sustainability initiative being completely buggered up by bad policy, bad program design and bad politics. And don’t get me started on the Home Sustainability Assessment/Green Loans Process!


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