Interest-Free Solar Loans

Updated: July 21, 2022

The Australian federal and state governments have developed programs to allow the easy acquisition of home solar systems.

All states have interest-free solar loans avaliable for the purchase and installation of solar systems. Depending on the state you live in, you have up to 10 years to repay your loan. You can purchase solar panels, solar batteries, solar equipment, and even an electric car charging system with your loan depending on where you live.

Different states have different conditions and eligibility criteria for loan applicants.

loans for solar panels

The NSW has an interest-free solar loan worth up to $14,000 for solar panels and batteries. Applicants can also access a $9,000 interest-free loan to retrofit existing battery systems which is repayable in ten years.

Eligibility Criteria

  • Live in participating postcodes.
  • Annual household income of less than $180,000.
  • Be the registered owner of the house to install the solar system. You must also live in the house.
  • Your home must be connected to grid electricity.
  • Pass the credit assessment.

How To Apply For The Loan

  1. Find a Clean Energy Council accredited solar retailer or installer and get a quote.
  2. Upload your quote to the Plenti portal which will start an eligibility assessment.
  3. Once the loan is approved, it will be channeled to the solar retailer. You will then pay the remainder of the purchase price and the solar panels will be installed in your home.

Facts To Consider When Applying For The NSW Interest-free Solar Panels And Batteries Loans

  • You can apply for a battery-only loan if you have an existing solar system that you would like to upgrade.
  • The program does not have an option for solar panels only.
  • Businesses are not eligible to apply for a solar loan.
  • Solar batteries are not ideal for every home. You can get solar batteries if you consume large amounts of electricity even after implementing other energy-saving methods.
interest free loans for solar

Victoria

Victoria state has $1.3 billion to offer as interest-free loans to new solar customers. Victoria also offers a solar rebate for the purchase of solar panels. The interest-free loan is equivalent to the value of the rebate and must be paid back in four years.

Eligibility Criteria

  1. To be eligible for the Solar Victoria loan, you meet the following criteria.
  2. A household must have a combined annual taxable income of less than $180,000.
  3. You are an owner-occupier of a home worth up to $3,000,000.
  4. You should not have a solar system installed. If you do, it must have been installed before November 1, 2009.
  5. A household can only apply for the loan and claim a rebate once.
  6. You must choose an installer approved by Clean Energy Council. The panels you buy should also be council-approved.

How To Access The Loan

  1. Find a Clean Energy Council accredited solar retailer or installer and get a quote.
  2. They will then upload your quote to the Solar Victoria website which will start an eligibility assessment.
  3. Upload proof of income and rates notice to confirm your eligibility for a solar rebate and the loan.
  4. Once you are cleared to receive, the loan and the rebate will be channeled to the solar retailer. You will then pay the remainder of the purchase price and the solar panels will be installed in your home.

Australian Capital Territory (ACT)

The ACT government’s interest-free solar loans are helping residents install solar by offering from $2,000 to $15,000.

If you are a homeowner in the ACT and your home is worth less than $750,000 you will be eligible for the interest-free loan. Loans are made through Brighte and your interest will be zero for the life of the loan.

Eligibility Criteria

  1. You must be a resident of ACT.
  2. You must be the owner of the house. If you are a tenant, you must have authority from your landlord to participate in the scheme.
  3. You must hold a valid driver’s license for category C purchases.
  4. 1-hour workshop on climate change
  5. Credit check.
  6. The unimproved value of the property must be below $750,000.

How To Access The Loan

The ACT government is working with Brighte as their partner in loan provision for the scheme.

You have to meet the loan application requirement as set by the loan provider to access the loan.

New applicants can apply for the loan for five years.

Financial Limits For The ACT Sustainable Household Scheme Loan

$2,000 is the minimum amount an individual or household can borrow under the scheme.

You don’t have to borrow the maximum $15,000 all at once. You can spread out how much you borrow depending on the items you want to purchase.

Any amount borrowed over $15,000 will accrue interest.

Your payments start after you have installed the solar panels or battery.

interest free loans for solar NSW

Queensland (QLD)

QLD offers up to $4,500 of interest-free loans to purchase solar panels. The loan is payable in 7 years. One can also apply for up to a $6,000 solar battery loan payable in 10 years or a $3,000 grant. The program is open to both households and small businesses.

Eligibility Criteria For Solar Loans In QLD

Homeowners

To be eligible to apply for the interest-free solar panel and battery loan, homeowners meet the following conditions.

  1. They must not have an existing solar system installed in their home.
  2. You must be the registered homeowner.
  3. Receive family tax benefit part B.
  4. Must have spent $1000 on electricity in the last six months.
  5. Proof of income.
  6. You must ensure to get accredited installers to install the solar system.

Small Businesses Eligibility Criteria

  1. Not have an existing solar system.
  2. Have more than 20 employees.
  3. Consume less than 100,000-kilowatt hours per year.

Small businesses that meet these conditions are eligible to apply for a grant to purchase solar panels and solar batteries.

How To Apply For The Interest-Free Solar Loans QLD

Meet all the eligibility conditions.

Apply online on the QLD government website.

Attach the following documents to your application.

  • Quote from an accredited battery supplier
  • The most recent council rates notice. It should be in your name.
  • Latest electricity bill.
  • Proof of income

Wait 15 days for approval.

If you are successful, you will receive a pre-approval loan certificate.

Contact your preferred solar panel or battery supplier to install the solar system at your home.

After installation, complete and return the following documents to QRIDA

  • Loan letter of offer
  • Direct Debit Request
  • Direct Debit Agreement
  • Authority to pay
  • Final invoice

Enjoy solar power and savings.

How To Use The Grant Or Interest-Free Loan

Here is how to use the received grant or interest-free loan money in the program:

  • You must purchase new solar panels and batteries.
  • The new solar system should not replace an existing one.
  • Do not use the loan to acquire a new solar system to enhance an old one.
  • Once you receive the grant or interest-free loan, you must agree to a free safety inspection. It ensures that the system installation is correct and you have met the above conditions.
solar laons QLD interest free

South Australia (SA)

In South Australia, the state government runs the Home Battery Scheme program. It is a program that provides subsidies to all grid-connected homes to purchase a home solar battery system.

The subsidy is calculated based on the size of the solar battery and how much you pay for your electricity bill. Hence, electricity bill concession holders can access a subsidy of $250 per kWh, and other households get $150 per kWh. The maximum subsidy one can access is worth $2,000.

Eligibility

  1. Each property is eligible for a single subsidy. Owners of multiple homes can access the subsidy for every property they own.
  2. The program is open to residential properties only.
  3. Energy concession recipients can access the subsidy at higher rates.
  4. Open to property owners and renters with authority from their landlords.
  5. The subsidy is only applicable to accredited solar brands. You must also get an accredited installer to install it for you.

How To Access The Loan

  1. Find a Clean Energy Council accredited solar retailer or installer and get a quote.
  2. They will then upload your quote to the Plenti website which will start an eligibility assessment.
  3. Once you are cleared to receive, the loan and the rebate will be channeled to the solar retailer. You will start your repayments after the installation in your home. Installers have up to six months for existing properties and a year to install the system in new buildings.

How To Use The SA Subsidy

The subsidy is only applicable for a solar battery system. It is open to everyone whose property is grid-connected.

If you purchase a large battery system that exceeds the subsidy cap of $2,000, you can access a low-interest loan to help finalize the purchase.

If you already own solar panels, you can use the subsidy to purchase a solar battery system.

Feed-in Tariff

If you already have solar and receive a 44c feed-in tariff rate, adding a battery to your system may end this. Only households without battery systems are eligible for this feed-in tariff rate.

Before you add a battery system, consider the implications of losing the high feed-in tariff rate.

Western Australia (WA)

In WA, you can get a $0 deposit interest-free loan to purchase a home solar system. The loan is payable in 36 months.

Eligibility Criteria

  1. Be over 18 years old.
  2. Australian citizen or resident.
  3. Own or in the process of purchasing your home.
  4. Clear credit file
  5. Employed or receiving a government pension.

How To Access The Loan

  1. Find a Clean Energy Council accredited solar retailer or installer, decide on the solar system you want, and get a quote.
  2. Apply for a payment plan.
  3. Install or upgrade your existing solar system.
  4. Your payment plan is activated and you can start your repayments.

Benefits Of Solar Panels And Battery

  • Durability. Solar systems last 25 years. It provides many years of cheap or free energy depending on your lifestyle and solar system.
  • No maintenance. Apart from an annual cleaning to remove dust, solar panels require little maintenance.
  • Quick return on investment. Depending on your power usage, you are likely to make enough savings to cover the cost of installation in 5 to 7 years depending on the size of the solar system.
  • Eco-friendly since you use renewable sources of energy and rely less on fossil fuels.
  • Energy independence.
  • Plenty of sunshine ensures that your solar system can provide sufficient electricity to power your home.
  • Federal and state government programs make it easy to acquire and install solar panels.

Factors To Consider When Applying For Interest-Free Loans

Whether you need a solar battery

Solar interest-free loans allow you to purchase solar panels or solar batteries. Solar batteries are expensive. Therefore, if you take a loan to buy solar batteries, make sure you have enough income to meet the repayments.

Additionally, solar batteries are essential for homes that need or consume high amounts of electricity.

Repayment Amount

You must pay back your interest-free loan. Ensure that you are aware of how much you need to pay before you apply.

Ensure that you can afford to pay back the loan on time when it’s due. Late payments may attract penalties.

Feed-in Tariff Rate

IF you already have a solar system, you may be enjoying the 44cents/kWh feed-in tariff rate from your electricity retailer.

Depending on where you live, the conditions for the feed-in tariff rate are that you cannot add a battery to your system.

Therefore, if you take a solar interest-free loan to buy a battery, you will forego your feed-in tariff rate.

Can I Access The Solar Loan If I Am A Tenant

Many tenants would like to get an interest-free solar loan to help save on their electricity bills.

Solar interest-free loans target homeowners. However, if your region allows tenants to apply for the loan, you will have to discuss with your landlord to allow you to apply for the loan.

The landlord will have to lower your rent payments to ensure that you can pay back the solar loan.

Power consumption

How much power you need every day determines the type of solar system you need. The more electricity you consume, the larger the solar system you need.