$500 million boost for social housing energy upgrades

Government to Expand Social Housing Energy Efficiency Initiative

The federal government has announced plans to expand the Social Housing Energy Performance Initiative (SHEPI) with a $500 million investment. This initiative aims to provide over 100,000 social housing properties in Australia with solar panels and other energy-efficient upgrades.

Initially introduced as a $300 million project under the $1.7 billion Energy Savings Package in the 2023-24 Budget, SHEPI was set to be implemented over four years for 60,000 homes. However, the recent announcement of the $500 million expansion on Saturday will now extend the reach of SHEPI to more than 100,000 social housing properties nationwide, representing nearly a quarter of Australia’s social housing.

The SHEPI programme offers residents of social housing access to various upgrades that aim to reduce energy costs and enhance the quality of life. These upgrades include improvements to insulation, shading, energy-efficient appliances like heating and cooling systems, hot water systems, ovens, cooktops, as well as the installation of residential renewable energy systems such as solar panels and batteries. The initiative has been developed in collaboration with all state and territory governments.

These enhancements are anticipated to result in an average annual energy bill saving of approximately $1,800 for social housing properties. Josh Wilson, the federal assistant minister for climate change and energy, highlighted the impact of the SHEPI programme on social housing tenants, stating that it is particularly beneficial for those who struggle with energy costs.

Wilson emphasised, “The SHEPI program is playing a vital role in upgrading social housing stock across the nation, leading to reduced energy bills, improved livability of homes throughout the year, and a decrease in emissions. By investing in energy efficiency, we are not only saving money but also creating a more sustainable future.”

The announcement was met with enthusiasm by the social housing sector in Australia. Dr Cassandra Goldie, CEO of the Australian Council of Social Service (ACOSS), praised the investment, noting that it will significantly enhance the lives of individuals residing in social housing.

Goldie stated, “This significant investment will bring about lasting benefits for those living in social housing, providing relief from high energy costs, promoting healthier living conditions, and contributing to a reduction in carbon emissions.”