The "green loan" election promise is being scaled back as the Rudd Government announces budget measures.
The budget for this year revealed spending was reduced to $175 million.
Mr Garrett said today that fewer loans would be available however for the first four years the loans will be interest-free, instead of requiring minimum annual repayments of at least $300.
Mr Garrett is confident that the spending on insulation and solar rebates will allow many home owners to make changes to their homes and improve energy efficiency without the need for a loan.
Mr Garrett cites the Government's $3.2 billion stimulus package spending on home insulation and $500 million on expanded hot water rebates, as well as the global economic crisis, as reasons for "changes" to the loans scheme, which will now be available to only 75,000 households.
According to the government's own data, in excess of 1000 applications are made per week for the means-tested solar roof panels.
Other measures affecting homeowners announced in Tuesday's budget include the extension of the first home owner's boost until December this year.
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