Interest Free Solar Loans
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 available 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.
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
- Find a Clean Energy Council-accredited solar retailer or installer and get a quote.
- Upload your quote to the Plenti portal which will start an eligibility assessment.
- 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.
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
To qualify for a solar , you meet the following criteria.
- Your household annual taxable income must be less than $180,000.
- You must be the owner-occupier of a home worth $3 million or less.
- You shouldn’t have an existing solar system installed.
- You can only claim the rebate or loan once per household.
- The installer must be approved by the Clean Energy Council.
How To Access The Loan
- Find a Clean Energy Council-accredited solar retailer or installer and get a quote.
- They will then upload your quote to the Solar Victoria website which will start an eligibility assessment.
- Upload proof of income and rates notice to confirm your eligibility for a solar rebate and the loan.
- 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
- Must be a resident of the ACT.
- Must be the owner of the house. The tenant will need authorization from the landlord.
- You will need to attend a 1-hour workshop on climate change
- You will need to pass a credit check.
- The value of the home must be less than $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
The minimum amount you can borrow under the loan scheme is $2,000 and the maximum is $15,000.
The loan amount will be based on quotations you get from accredited solar installers.
You can borrow more than $15,000, but you will need to pay interest on money loaned above that amount.
Your payments start after you have installed the solar panels or battery.
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 for the interest-free solar panel loan, homeowners must meet the following criteria.
- You mustn’t already have a solar system installed.
- You must be the registered homeowner.
- You must have spent $1,000 or more on an electricity bill in the last 6 months.
- A credit check is performed, and proof of income is required.
- The solar installer must be Clean Energy Council accredited.
Small Businesses Eligibility Criteria
Any small business looking to apply for a solar loan must meet the following criteria:
- You must not have an existing solar system installed.
- You can’t have more than 20 employees.
- You must consume less than 100,000kWh of electricity per annum.
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.
South Australia (SA)
The South Australian state government runs the Home Battery Scheme program. This program provides subsidies to all grid-connected homes that want to install a solar battery system.
Subsidies are calculated based on the size of the solar battery and how much your monthly power bill is. Electricity bill concession holders can access a subsidy of $250 per kWh. For regular households, you will get $150 per kWh. The maximum subsidy one can access is worth $2,000.
It’s worth noting that most people will need a 14kWh battery which costs around $12,500. The subsidy is small compared to what other states are offering and only covers less than 10% of the cost.
I would wait until battery prices come down or they increase the subsidy.
Eligibility
- Subsidies are given to properties and not individuals. If you own 2 properties, you can get a subsidy for each.
- The program is only open to residential properties and not commercial ones.
- A higher subsidy is available to residents with existing Energy concessions.
- This is available to renters, but you will need the okay from your landlord.
- The subsidy is only available to if you choose to install accredited solar brands.
- The battery must be installed by a Clean Energy Council-accredited installer.
How To Use The SA Subsidy
The subsidy is only applicable to 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
- Be over 18 years old.
- Australian citizen or resident.
- Own or in the process of purchasing your home.
- Clear credit file
- Employed or receiving a government pension.
How To Access The Loan
- Find a Clean Energy Council-accredited solar retailer or installer, decide on the solar system you want, and get a quote.
- Apply for a payment plan.
- Install or upgrade your existing solar system.
- Your payment plan is activated and you can start your repayments.
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 enjoy up to cents 14c per kWh feed-in tariff rate from your electricity retailer.
Because you will be reducing your power bill by 80 – 90% just with solar panels, it might not be worth spending an additional $12,500 for a battery to save that last 10%.
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.
Author: Ben McInerney is a renewable energy enthusiast with the goal of helping more Australians understand solar systems to make the best choice before they purchase. Having an accredited solar installer in the family helps give Ben access to the correct information, which allows him to break it down and make it easily understandable to the average homeowner.