Zero upfront costs make warmer, drier and healthier homes easily obtainable

Creating a warmer home in Palmerston North just got a whole lot easier. The Palmerston North City Council is proud to introduce a financing programme to support ratepayers wanting to take part in the Government’s insulation scheme.

The Council’s Warm Up Palmy scheme offers homeowners an alternative way to purchase insulation, and is designed to supplement the ENERGYWISE grant scheme from the Energy Efficiency and Conservation Authority (EECA) that pays for up to 33% of the cost of insulation to a maximum of $1,300 and limited funding of up to 60% of the cost for Community Service Card holders.

Palmerston North Mayor, Jono Naylor says this is a positive project which allows council to assist in the provision of warmer, drier, healthier homes for our community.

“It’s one of the projects we have embarked on to implement our Domestic Energy Strategy – we want to help residents to use less energy.”

The Warm Up Palmy scheme helps homeowners who want to take up the Government’s offer, but don’t have all the funds up-front, to get financing from the Council for the rest of the money – up to a maximum of $2,600 including GST.

Mayor Naylor says the scheme is rates neutral to all other ratepayers, because all interest and administration costs are recovered from the homeowner who chooses to take part in the scheme. The financing will be paid back, with interest, over a period of up to nine years in the form of a targeted rate on that property. If the property is sold the grant can be paid off in full upon settlement or be transferred to the new owner.

EECA’s Residential General Manager, Robert Linterman, says the council has taken an important step to help Palmerston North people insulate their homes. “An insulated house is easier to heat – it reduces energy bills, improves comfort, and reduces illness, sick days and medical costs. We know that colder houses place greater stress on older people, babies and the sick, and are more likely to have mould that causes respiratory problems”.

Details of the scheme

With Government funding of up to $1,300 available, an insulation quote of $3,900 for example would leave $2,600 for the homeowner to pay. The Palmerston North City Council scheme will provide up to $2,600 to help pay the balance for those homeowners that have accessed an ENERGYWISE grant.

Ratepayers will repay the funds over nine years as part of their rates bill. The council will charge an interest rate of 8% to ensure that the cost of borrowing is fully recovered – which means that repayments would be up to $8.30 per week.

The Warm Up Palmy home insulation scheme is a pilot scheme and will run until June 2013 when it will be re-evaluated. For now, Council has allowed enough funding for 190 homes. The scheme is available to ratepayers who are up to date with rates payments. Landlords are included and those renting are encouraged to make their landlords aware of the scheme.

For further information about the Warm Up Palmy scheme email wup@pncc.govt.nz or call the council’s Warm Up Palmy team 356 8199.

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