State budget long on words, short on numbers

Yesterday’s Queensland state budget re-stated the government’s promise of helping to fund the retrofit of 200,000 Queensland homes with solar hot water systems or heat pumps, but details are nowhere to be found in the budget papers.

This is curious, particularly as the program is due to begin in two weeks on 1 July.

While the government is to be applauded for setting a target of 200,000 retrofitting energy-efficient
hot water systems in households, how they are going to deliver and what it will cost remains unclear.

The hot water system retrofits are to be made under the Queensland Solar Hot Water Program, which is funded by the Queensland Future Growth Fund. While both get a mention in the text of the budget papers, there are no details.

A few items that ARE specifically costed include: $4.3 million to Ergon Energy Corporation for the Birdsville Geothermal Power Station; $3 million to Mackay Sugar Co-operative for the Mackay Sugar Cogeneration Project; $2.5 million to the CSIRO for SolarGas One.

These figures are considerably less than what the Queensland Solar Hot Water Program would cost, so it’s absence is not explained by any lack of importance.

An installed solar hot water system currently costs around $2000 (including Federal Government rebate and Renewable Energy Certificates); the cost of 200,000 systems to the State government would be around $400 million.

If the State Government provides 30% of the 200,000 retrofits to pensioners and low income earners for $100 (as they have stated) and the rest for $500, the public will make a contribution of $74 million. The difference, to be funded by the government, is around $326 million.

Where this money is to come from remains a mystery.

Related Topics

• Applications open for Queensland Solar Hot Water Program
  The Queensland Government is from today (1 July) sending out application packs to people who registered their interest in a subsidised solar hot water system. Premier Anna Bligh earlier promised...
  
  

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