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More than three million Australian households are set to benefit from the largest energy efficiency rollout Australia has ever seen.

The $4.0 billion Energy Efficient Homes Package will install ceiling insulation in 2.9 million homes and help more than 300,000 additional households install a solar hot water system.

Environment Minister Peter Garrett said the unprecedented investment was a core component of the $42 billion Nation Building and Jobs Plan.

"The package will support thousands of jobs for tradespeople and workers employed in manufacturing, distribution and installation during the global financial crisis. The benefits of this energy efficiency transformation will be felt for many years to come," Mr Garrett said.

"The Energy Efficient Homes Package will improve the energy rating of Australian homes - cutting energy waste, making them more comfortable and helping households save up to 40 per cent on their electricity bills.

"I encourage the millions of eligible Australians to take advantage of the package as we roll it out across the nation's suburbs over the next few years. This investment is a critical measure in our journey to a more energy efficient, sustainable Australia," Mr Garrett said.

The three components of the Energy Efficient Homes Package include:

• Homeowner Insulation Program - installing ceiling insulation, capped at $1,600, to eligible home owner-occupiers with very little or no existing ceiling insulation.
• Low Emission Assistance Plan for Renters - providing assistance to landlords and tenants, with up to $1,000 to install insulation in private rental properties.
• Solar Hot Water Rebate - providing a $1,600 rebate to help households install a solar or heat pump hot water system to replace their old electric storage hot water system.

Alongside the Energy Efficient Homes Package, the Australian Government will also provide additional funding of $245.3 million in this Budget to meet the continued demand for the Solar Homes and Communities Plan until the program transitions into the new Solar Credits scheme . This initiative provides a rebate of up to $8,000 for households installing solar panels, and continues to drive the highest uptake of solar installations ever seen in the Australian community.

"This funding highlights the Government's commitment to making renewable energy technologies accessible and more affordable for Australian households," Mr Garrett said.

For more information visit www.environment.gov.au/rebates

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