4. Financial incentives

4.1 Tax breaks for green buildings

Since February 2011, public consultations have been held on the Tax Breaks for Green Buildings scheme, to be introduced on 1 July 2012. The tax breaks will offer businesses that invest in eligible assets or capital works to improve the energy efficiency of their existing buildings - from 2 stars or lower to 4 stars or higher - the ability to apply for a one-off bonus tax deduction of 50% of the cost of these improvements.

The Tax Breaks for Green Buildings scheme is expected to provide a boost of around $1 billion over the life of the scheme to help 'green up' existing buildings across Australia

4.2 Green Building Fund

Green Building Fund (Commercial Buildings) allocated $90 million in grants over four years (from January 2009) to reduce the energy consumed in the operation of existing commercial office buildings. The program, delivered by AusIndustry, offers dollar-for-dollar support for retro-fitting and retro-commissioning of existing commercial building.

Grants were made available to two streams of activity. Stream A targeted owners of existing commercial office buildings to reduce base building energy consumption. Stream B provided grants to relevant industry associations to develop the knowledge, skills or capability of those involved in the operation of commercial office buildings, to improve energy efficiency and reduce emissions.

Round 7 of the Green Building Fund closed on 29 March 2011

4.3 National Solar Schools Program

National Solar Schools Program (Primary and Secondary Schools) The program offers eligible primary and secondary schools grants of up to $50,000 or up to $100,000 for multi-campus schools (GST exclusive), to install solar and other renewable power systems, solar hot water systems, rainwater tanks and a range of energy efficiency measures.

Registered Government and non-government schools are eligible. Educational institutions that are not eligible for a grant include kindergartens, early childhood centres, preschools, TAFE colleges and universities.

Since the program commenced on 1 July 2008, almost 7,900 schools have registered their interest to participate. Total funding of more than $165 million has already been paid to over 2,600 schools. Of these, more than 2000 projects have been installed across the nation. These schools are already generating their own electricity from renewable sources and improving their energy efficiency by reducing energy consumption.

As part of the 2011-12 Budget, the Government announced that the NSSP will close on 30 June 2013, and has two remaining funding rounds. Savings generated will be reinvested in new proposals to move Australia to a clean energy future. Approximately $50 million in funding remains available under the program.

The following changes have been made to the NSSP and come into effect from 1 July 2011:

• Applications from schools located in remote or low socio-economic areas will receive additional assessment weighting to allow funding to be directed to the most disadvantaged schools.
• Multi-campus schools currently eligible for $100,000 will have their eligibility amount reduced to up to $50,000, consistent with single campus schools. This will allow a greater number of schools to be funded under the program in its remaining two years.
• For government schools - state or territory government education authorities may request that the maximum funding amount available to government schools in their jurisdiction be reduced to allow more schools to receive the grant.
• The 2012-13 funding round will be the final round for schools to apply for the grant.

Schools have been contacted if there have been changes to their funding eligibility.

Funding for 2011-12 has now closed.

4.4 Renewable Energy Bonus Scheme - Solar hot water rebate

The Renewable Energy Bonus Scheme (REBS) - Solar Hot Water Rebate is available to help eligible home-owners, landlords or tenants to replace their electric storage hot water systems with solar or heat pump hot water systems. It replaced the Solar Hot Water Rebate Program and the Home Insulation Program which were discontinued on 20 February 2010.

Eligible households can claim a rebate of $1,000 for a solar hot water system or $600 for a heat pump hot water system through the rebate. This rebate applies for systems ordered and purchased from 20 February 2010.

Changes to eligible systems from 1 November 2011

To be eligible for the rebate under REBS your system must generate 20 or more small-scale technology certificates (STCs) at the time of purchase.

The Office of the Renewable Energy Regulator (ORER) determines the number of STCs assigned to hot water systems. As of 1 November 2011 ORER will apply a new method for calculating the number of STCs assigned to hot water systems. As a result some systems will no longer attract the minimum 20 STCs required to be eligible for the rebate under REBS.

Therefore, it is important that you check with your supplier or the manufacturer that the system you are purchasing attracts 20 STCs or more from 1 November 2011.

Alternatively, from 1 November 2011, the new STC value of your intended system will be available on the ORER website when using the SHW Calculator.