The Victorian State Government has announced a new interest free battery loan scheme to encourage residents to switch to renewable energy.
The battery loans are part of the State Government’s $1.3 billion Solar Homes Program. The loans will be repayable over the course of four years, and in some cases, the loan will reduce the upfront installation costs to zero.
Minister for Energy and Resources, Lily D’Ambrosio, announced on 27 July, the new $8,800 interest free battery loan, which will enable households to maximise output from their solar panels and save on thousands of dollars on energy bills over the lifetime of the battery.
The aim of the loans as part of the Solar Homes Program is to bring down energy bills for Victorian’s, helping to reach the state’s net zero emissions by 2045.
The battery loan scheme 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.
For new customers, the loan will be available in addition to the pre-existing $1,400 rebate and the $1,400 interest free loan for solar photovoltaic (PV) technology 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 starts at approximately $8,000 for a 6kW/h battery and can increase to around $17,000 for an 11kW/h battery.
Minister for Energy and Resources, Lily D’Ambrosio, said interest free batteries will help people take advantage of cheaper renewable energy.
“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.
“Interest free battery loans will allow more people to take advantage of cheaper renewable energy by significantly reducing upfront costs of installing battery storage,” said Ms D’Ambrosio.
The Solar Homes program has cut Victorian’s carbon emissions by 1.7 million tonnes, helping the state move towards electrification and meet its emissions reduction target of 75-80 per cent by 2035 and net zero by 2045.
