admin /3 May, 2007
Labor will provide families with low-interest loans of up to $10,000 to help make their homes more energy efficient by using solar power and saving water, under a $300m package announced by leader Kevin Rudd on 29 April 2007, reported The Canberra Times (30/4/2007, p.1).
200,000 households save up to $800 a year on bills: Rudd eclipsed the debate on climate change policy on the final day of Labor’s national conference with the plan to make loans available to 200,000 households, provided their combined income did not exceed $250,000 a year. He said households could save up to $800 a year on their energy and water bills under the plan.
Loans to reduce emissions by up to 15m tonnes: The loans could be used to fit homes with solar panels, rainwater tanks, roof insulation, grey-water recycling systems and other energy-efficiency measures. Labor said the package had the potential to cut greenhouse gas emissions by up to 15m tonnes over the scheme’s lifetime from January 2009 until 2012-13.
Incentive for working families to turn green: While many families wanted to do something for the environment, they would be struggling to raise the money. Rudd had been advised that to fit out the average home with solar panels would cost anywhere between $14,000 and $26,000 depending on where you lived. Questioned on whether the $250,000 limit was too high when the average annual wage was about $55,000, Rudd said that many families in Sydney were finding it hard to make ends meet on annual incomes of $200,000. "Our policy includes all working families. "[To] find the extra available funds, to go out there and stump up at commercial interest rates the extra money necessary to whack on the solar panels, it’s a real challenge."
Finances of the scheme: The loans of up to $10,000 would be repaid through the tax system at 2pc of a household’s gross annual income, with a minimum yearly repayment of $300. They would be available to employed or retired home owners and priority would be given to those with older, unrenovated homes.