Dunedin, Mosgiel and Balclutha residents can no longer get a subsidy to install a clean heating appliance, but their more inland neighbours still will.
The Otago Regional Council has been advised that from July 1, the Energy Efficiency and Conservation Authority (EECA) will no longer fund Clean Heat projects, as its funding from the Environment Ministry has ended.
Council Regional Services director Jeff Donaldson said at a recent council committee meeting it meant the council would no longer be involved in managing the insulation of homes and supplying clean heating appliances to Dunedin, Mosgiel and Balclutha homes.
This meant home owners in those towns could no longer get a $1000 subsidy to install a new heating appliance.
As a result, the council had to revise its budgets in the draft annual plan because expenditure would decrease by $640,000 in funding.
The council would continue to offer subsidies in towns with the most air pollution, such as Alexandra, Arrowtown and Milton.
Those subsidies would be funded by the special rating districts for those towns and by any third-party funding the council could secure.
However, the subsidy would be less than the $2000 for general income earners and $3000 for Community Service Card holders paid until now, possibly about $1400 and $1800 respectively.
The council would now direct homeowners to other providers for insulation services.
Subsidies for insulation had also been cut by the Government and would be available only to community card holders.
During the 2011-12 year, 427 homes were insulated and 300 got new heating appliances under the Clean Heat programme in Otago. Of those, 239 were in the coastal Otago towns, and Milton.
