Victorian Premier Daniel Andrews speaks during question time in the Legislative Assembly at Parliament House in Melbourne.
Camera IconVictorian Premier Daniel Andrews speaks during question time in the Legislative Assembly at Parliament House in Melbourne. Credit: AAP, AAP/James Ross

Why Morrison’s $25,000 renovation grant needs to target energy efficiency

Jono La NauzeNews Corp Australia Network

Splashing cash to renovators may be popular in the short-term, but if the government really wants to improve lives, they should look past marble benchtops and into more efficient options, writes Jono La Nauze.

Will we go back to business as usual or stimulate the economy in a way that helps create a society that matches the best version of ourselves – one that is fair, healthy and sustainable.

The restrictions on movement during the coronavirus lockdown have crystallised how difficult it is for many households to keep their home comfortable and safe while keeping their energy bills affordable.

And while the federal government has just offered $25,000 cash bonuses to some Australians fortunate enough to be able to afford to splash $150,000 on home renovations, many others are going to shiver through this winter inside poorly heated homes that are often impossible to keep warm.

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If the measure of a good society is the way it treats its most vulnerable, then this policy clearly doesn’t meet the equity test. After all, directing that same money towards retrofitting substandard homes could provide many more benefits than a boom in marble benchtops.

If the measure of a good society is the way it treats its most vulnerable, then the HomeBuilder scheme clearly doesn’t meet the equity test.
Camera IconIf the measure of a good society is the way it treats its most vulnerable, then the HomeBuilder scheme clearly doesn’t meet the equity test. Credit: AAP, AAP/Lukas Coch

$25,000 would be more than enough to cover installing solar panels and batteries, replacing gas appliances with more efficient electric ones, and properly insulating and sealing these homes against weather extremes.

A rebate of even $5,000 for basic energy efficiency upgrades can completely transform how well a home stays warm in winter and cool in summer.

This should this be a priority because according to a comprehensive, multi-country academic paper, over 2600 Australians die each year due to the impacts of cold weather, made worse by poor quality homes. Those numbers are more than just statistics – they are members of someone’s family and a friend.

Australia has a 76 per cent higher death rate from cold homes compared to Sweden – despite the fact that the Scandinavian country’s winters are far, far colder. The difference is that Sweden enforces far stronger standards for homes.

The reality is that many of these deaths are avoidable and we need government leadership to improve the standards of homes. The current mood to stimulate residential construction provides the ideal opportunity to do it.

Over 2600 Australians die each year due to the impacts of cold weather, made worse by poor quality homes.
Camera IconOver 2600 Australians die each year due to the impacts of cold weather, made worse by poor quality homes. Credit: Herald Sun, iStock

We know that Australian homes are built to notoriously poor standards, with many of our older homes fairly described as little better than glorified tents – dangerously hot in summer and freezing in winter.

In Victoria, research shows that if the average home was increased to a 5.4 star energy rating, cold-related deaths could be decreased by 90 per cent.

While over 400,000 Victorian households and businesses have installed solar panels and thousands more have improved energy efficiency in their homes (benefiting from lower bills and more comfortable homes) – low-income and disadvantaged households are largely locked out of these benefits by barriers like unaffordable upfront costs.

An alliance of Victoria’s leading environment, social, community and consumer groups including Environment Victoria, Victorian Council of Social Services, Brotherhood of St Laurence, Victorian Trades Hall Council and Tenants Victoria have called on the Andrews government to ensure the state’s pandemic recovery offers immediate support on energy bills to disadvantaged people, and improves household energy performance.

Over 400,000 Victorian households and businesses have installed solar panels and thousands more have improved energy efficiency in their homes, but low-income and disadvantaged households are largely locked out of these benefits.
Camera IconOver 400,000 Victorian households and businesses have installed solar panels and thousands more have improved energy efficiency in their homes, but low-income and disadvantaged households are largely locked out of these benefits. Credit: AAP, AAP/James Ross

A relatively simple suite of changes could make a tangible difference to those struggling. This includes funding household retrofit packages and subsidised appliance upgrades for low-income homeowners, providing more social housing, and low-income rental properties.

While the federal government sold its Home Builder program on boosting the economy and creating employment in the building industry, the reality is that getting lower income households into energy efficient and climate resilient homes is also a massive jobs creator.

And unlike fancy renos that only create private benefits, upgrading the energy performance of homes creates myriad public benefits: improved health outcomes, less strain on the electricity grid, fewer greenhouse gas emissions, and lower energy bills (leaving more money for people to spend in other parts of the economy).

While the pandemic has created severe economic and health impacts, it also presents an opportunity to address much bigger problems, too.

We should build back better.

Jono La Nauze is CEO of Environment Victoria