The Southern Shout

Rebates still generous – despite confusion

The fiasco of the Federal government’s home insulation scheme, together with changes to the hot water and solar heating rebates, has resulted in massive confusion in the minds of consumers. But despite the mayhem, the hot water and solar rebates are still reasonably attractive.

When the hapless Peter Garrett announced the end of the insulation scheme in its existing form on February 19, he also announced changes to the rebates affecting hot water. The rebate for installing a solar hot water system was reduced from $1,600 to $1,000, and the rebate for heat pumps was reduced from $1,000 to $600.

When combined with Renewable Energy Certificates (RECs) and state government rebates, the changes by the Federal government certainly mean that the days of getting a solar hot water or a heat pump for free are over. But even so, the subsidies are substantial.

For example, a customer installing an Apricus 30-tube electric boosted solar system in NSW would be eligible for combined government assistance of $2,260, reducing the price of the unit to about $1,350 (plus installation). This is still a great buy for a solar hot water system – especially as electricity prices continue to escalate.

Similarly, a customer buying a Rheem 310 heat pump in NSW would get combined government assistance of nearly $2,200, also leaving them to find only about $1,350 (plus installation).

Southern Plumbing will be boosting the promotion of heat pumps and solar systems as the weather cools. Our advice today is the same as it was last year when the government rebates were extremely generous. That advice is: Get in now while the rebates last – you never know when the government will change the rules!