Funds to keep up insulation momentum

High demand for the Government's home insulation grants scheme has led Energy Minister Gerry Brownlee to bring its funding forward to keep work going.

Since July, 19,759 homes have been retrofitted with home insulation under the scheme, which allows people to claim subsidies for the work, whatever their income.

Mr Brownlee said the target for the first year had been to retrofit 27,000 homes, but it looked likely that figure would be reached within the first six months.

Funds were initially budgeted to be released annually at the start of each financial year for the scheme, but Mr Brownlee said that would be changed to keep the work going.

"Funding will be on tap to keep the momentum rolling."

In total, the Government has allocated $323 million to be spent on the scheme in the next four years.

The scheme was driven by Green Party MP Jeanette Fitzsimons, who said making the funds available was essential to keep jobs and businesses going. It also made sense to improve as many homes as fast as possible.

The funding would have run out about February if this decision had not been made, she said.

"One lot who would have suffered would have been the customers, but it would be possibly more serious for firms who would have had to lay workers off and hope they were still around to employ three months later."

People applying for grants funding must have their home insulated by a provider accredited to install the package under the scheme. Last month, some accredited providers criticised the Government for poor management of the scheme, as they looked set to run out of work about next March.

The energy projects manager at Wellington's Sustainability Trust, Phil Squire, said the funding announcement was "great news" but it was too early to know how the change would work for providers.

One installation company not accredited by the scheme is Poly Palace in Porirua, where manager Richie Moore said business was booming, despite customers not being able to offset their costs with grants.

He believed that was because his prices were competitive and fair, and some accredited providers were overcharging for work.