Drastically Reduce Your Energy Bill for Free (or really, really cheap)

(Updated 01/2012: The insulation rebates no longer apply. I know whole thing ended up being a debacle but I still believe the idea was a good one. I decided to leave the post up without deleting it because insulation is still an excellent way to reduce your energy bills. The solar hot water rebates have changed (and are about to change again); I’ve written about them in more depth here. The resources at the bottom of this page are also still relevant.)

While you have probably already received your stimulus payment in the bank, the stimulus package is only just beginning. As part of the package, the Commonwealth Government is offering a rebate on two home improvements that can significantly reduce the cost your energy bill: ceiling insulation and solar hot water.

While we know that insulation and solar hot water will reduce our energy bills, the upfront costs of installation is prohibitive for many of us. The Government rebates mean that the installation cost is greatly reduced, and in the case of ceiling insulation, it’s free.

Insulation Rebate

As we go into winter, one of the major energy costs in the home is heating. Up to 35% of heating is lost through uninsulated ceilings. Installing insulation in the ceiling can save up to 45% on heating costs, slashing your energy bill. Here in Queensland, heating isn’t so much of an issue. However, the same percentage of savings apply for cooling, so insulation is just as important in warmer climates.

As part of the stimulus package, the government is offering a rebate for home owners of up to $1,600 for ceiling insulation if your home has little or no insulation.

If you prefer to choose you insulation and your installer, then now is the time to act. From Feb 2009 to June 2009 you can get a rebate for $1,600 for the installation of ceiling insulation. Insulation must be installed by a professional installer and eligibility requirements apply. Depending on the type of insulation and the installing company, you will be able to get free ceiling insulation with the government rebate.

Things to consider when choosing insulation:

• You will need to consider the type of insulation that you want to install in your home. There are two types, bulk and reflective (sometimes combined into one composite material). Some insulation products are more environmentally friendly and better for your family’s health (wool as opposed to fibreglass for example). Speak to a professional insulation installer to get the right insulation for you.
• The effectiveness of insulation is measured by its R-Value, the higher the R-Value, the more insulation it provides. The R-Value that is appropriate for your house will depend on where you live and your local climate. Bear in mind, to be eligible to receive the $1,600 for insulation, you have to install the minimum R-Value required by the scheme for your local climate zone. For information about the rebate requirements for your climate zone, have a look at the PDFs on the energy efficient homes website.

After 1 July 2009, instead of organising insulation yourself, you ring the government hotline and they will send out a professional (update: ahem, I know, many weren’t professional!) installer free of charge.

If you are a renter, don’t despair, landlords and tenants (with landlord’s permission) are eligible  for a rebate of up to $1,000 for the installation of ceiling insulation meaning that you too can save on your energy bill.

Solar Hot Water Rebate

According the Department of Environment and Natural Resources, you can save between $300 and $700 on your electricity bill by installing solar hot water.

The rebate (offered to homeowners, landlords and tenants) is $1,600 towards the cost of installing a solar hot water system. As with ceiling insulation, you will need to meet the eligibility requirements.

As well as the federal government rebate, you may be also eligible for a state government rebate, saving you even more. For an idea of what rebates apply to you check out the hot water rebates website.

The cost of installation varies greatly depending on state rebate eligibility, the system you choose and system installation, your home, etc. For an idea on costs, get an obligation free quote at Solar Pay. You don’t have to give personal details to get a general quote for the cost of installation.

For information on solar hot water systems, a good place to start is the CHOICE article on choosing a solar hot water system.

Finally, one other reason to go solar. Apart from all the warm and fuzzy reasons, like saving the environment, and cutting your electricity and gas bills, the hot water rebate site suggests that legislation will “probably” make regular hot water heaters illegal in the next 3-5 years and there will be no rebates when this happens – in other words the threat is change now or pay the price later. The Queensland Government has already passed legislation to phase out electrical hot water systems in QLD homes.

 

Note: The rebates are for either insulation or solar hot water, not both.

Other Rebates

There are other rebates currently available. The Government Stimulus rebates may not necessarily be the best for you. For example, up until the 30 June 2009, there is an $8,000 rebates for the installation of a complete solar power system. For more information on the solar power rebate or other energy rebates see the Energy Matters website.

 

Resources

Commonwealth Government Rebates

Commonwealth Government Energy Efficient Homes Package

Commonwealth Economic Stimulus Package has all the information about the economic stimulus package. The website also has links to state and local government websites so you can see what your state government and local council offer in the way of rebates.

Hot Water Rebates This website gives information on the total hot water rebates available if you combine your federal and state rebates.

Energy Matters on solar and wind power for the home.

Check out the Solar Pay website to see if solar power is appropriate for you and for a quote on how much installing solar will cost.

Have you read these posts?

1. solar power–are you missing out on energy that’s out of this world?
2. bathing in sunlight – can solar hot water save you money?
3. an energy saving alternative to solar – an addendum
4. The Green Loans Programme
5. the forgotten renewable energy source