Over one-third of Aussies have already installed solar on their homes, with many more looking to do so over the coming years. The drive to see all Australians enjoying the cost-saving and environmental benefits of renewables has been given a boost with the $1 billion federal Household Energy Upgrades Fund. The newly announced initiative will back green loans to be accessed by everyday Australians to install solar, batteries, heat pump hot water systems, and more.
What can be installed under the Household Energy Upgrades Fund?
The Clean Energy Finance Corporation will oversee the fund while co-financers will be responsible for handling all applications and delegating the financing.
It is expected that financing, in the form of green home and personal loans, will be available for:
- Battery-ready rooftop solar
- Home battery storage systems
- Energy-efficient appliances and household devices
- Heating and cooling solutions, including air conditioning units and ceiling fans
- Double-glazed windows and proper insulation
- Energy usage monitoring systems
- Infrastructure for charging electric vehicles
Green home loans would be available for renovations and retrofitting of the aforementioned technology and upgrades.
What is a green loan?
Green loans are different to regular loans in that they have been designed to specifically finance ‘green’ items. The eligibility criteria to apply for the loans are usually more stringent given the use of the financing. You can expect lower interest rates and, usually, shorter payback periods.
The lower interest rates are what is the most attractive aspect of green loans, and why the Australian Government believes the Household Energy Upgrades Fund will see a huge uptake of solar and other sustainable household installations.
Where can I apply for a loan under the Household Energy Upgrades Fund?
Plenti is the first co-financer approved to deliver the Household Energy Upgrades Fund (HEUF). It is expected that more co-financers will be approved over the coming months with varying offers.
Plenti currently offers the following with their HEUF green loans:
- 3.34% p.a. rate discount (up to)
- $2k – $50k loan amounts
- 3 -15 years loan terms
Eligibility criteria are stringent, with installers being required to have NETCC AND Plenti accreditation. The eligibility criteria for consumers are as follows:
- Be over 18 years old
- Be an Australian citizen or permanent resident
- Have a valid driver’s licence, Medicare Card or Australian Passport
- Own (or be purchasing) their own home where the property value does not exceed $2.5 million
- Have a clear credit file
- Be employed >25 hours a week, a self-funded retiree or receiving a government pension
The current offer is NOT available for solar PV installations only. To receive the HEUF offer, customers must install a battery with the solar system and/or other eligible items.
More information about the HEUF Plenti offer can be found via this link.
How the Household Energy Upgrades Fund will benefit Australia
The greatest barrier for Aussies to install renewable technology and upgrades is money. Cash-strapped Australians are facing financial woes on all fronts and, for many, the idea of installing solar or related tech seems unreachable.
Access to reasonable finance will be the solution for many, and the Household Energy Upgrades Fund will provide a simple avenue. In concert with existing federal and state incentives and rebates, many Australians will finally be able to afford to go solar.
Not only will the fund aid Australians in saving money on their bills but it will see Australia march forward with its renewables goals. “At a time when Australians are experiencing bill shock due to the rising costs associated with fossil fuel generated electricity, the need to switch to low-cost renewable energy has never made more economic sense,” Smart Energy Council Chief Executive John Grimes said.
“The Council has long advocated for cash-strapped households and businesses to be helped off high-cost coal and gas, through the electrification of their premises.”
Mr Grimes continued, “Smart energy systems like heat pumps, solar panels and batteries are by far the most logical way for people to bring down their power bills – but we know that many need a hand to get them.”
“The energy transition must not exclude those who can’t afford to make the switch.”
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