More households will be able to reap the benefits of solar power with a new battery loan scheme introduced by the State government.
The Labor Government is helping more Victorians take advantage of renewable energy by slashing thousands of dollars off the upfront cost of solar batteries – bringing down energy bills and helping Victoria reach net zero emissions by 2045.
Energy and Resources minister Lily D’Ambrosio announced the new $8,800 interest free battery loan, which will enable households to maximise output from their solar panels and save thousands on energy bills over the lifetime of the battery.
“To achieve our nation-leading renewable energy target of 95 per cent by 2035, it is vital households transition to running on cheap, reliable, renewable energy,” she said.
“Interest free battery loans will allow more people to take advantage of cheaper renewable energy by significantly reducing upfront costs of installing battery storage.”
The loans are repayable over four years – and in some cases, will reduce upfront installation costs to zero. Solar Homes customers with both solar and a battery save around $1,500 on their energy bills each year, with an average return on investment period of seven to ten years.
The battery loan is part of the Labor Government’s $1.3 billion Solar Homes Program and will be available to new customers as well as the more than 226,000 Victorian homeowners who have already claimed a rebate to install solar panels.
This will allow homeowners who have already installed solar to maximise the use of the renewable energy they generate, more than doubling the amount of self-generated energy consumed – increasing household self-consumption from 28 per cent to about 60 per cent, on average.
For new customers, the loan will be available in addition to the $1,400 rebate and $1,400 interest-free loan for solar PV if a solar and battery system are installed at the same time, saving eligible households $11,600 on upfront installation costs.
Out-of-pocket installation costs for a solar and battery system after the solar PV rebate and federal government small-scale technology certificates (STCs) are applied start at about $10,300. Installation costs for a battery alone start at about $8,000 for a 6kwh battery and rise to about $17,000 for an 11kwh battery.
The Solar Homes program has cut Victoria’s carbon emissions by 1.7 million tonnes helping us move towards electrification and meet our emissions reduction target of 75-80 per cent by 2035, and net zero emissions by 2045.
The Solar Homes Program will also support 5,500 clean energy jobs. For more information, including loan eligibility criteria, go to solar.vic.gov.au.
