Over 110,000 households could soon have access to a low-interest loan to help make energy efficient upgrades to their home, as part of a new fund revealed in the Federal Budget.
The Household Energy Upgrades Fund, which falls under a larger Energy Savings Package from the government, will be backed by a whopping $1.3 billion to help households gain easier access to financing options when it comes to energy saving upgrades for their home.
It’s one of several energy relief points outlined in this year’s budget, alongside a jaw-dropping $500 bill payment for vulnerable households and plans to expand the national home energy efficiency testing scheme.
The launch date of the Household Energy Upgrades Fund is still heavily under wraps; however, there are some details already emerging around the types of appliances and households that may be applicable.
Canstar Blue has collated these for you below to help you determine whether you may be eligible for one of these loans, what you could expect to receive and what you can do in the meantime if you are concerned about your home energy efficiency.
How does the Household Energy Upgrades Fund work?
The Household Energy Upgrades Fund is set to work in two parts: one looking at households in general and the other focused more on social housing.
For households in general, the government has allotted $1 billion towards financing options to help upgrade homes to be more energy efficient. This will be done through the Clean Energy Finance Corporation (CEFC) with assistance from banks and private lenders.
For social housing however, the government has put forth $300 million to support upgrades for these dwellings. This initiative will partner with the states and territories to determine the best use of energy upgrades at these properties.
A Small Business Energy Incentive has also been established to help businesses increase their energy savings. This will work by allowing businesses with a turnover of less than $50 million annually to cash in on an additional 20% tax deduction on any energy upgrades they do that promote efficient usage or support electrification. This is capped to expenditure of up to $100,000 with the tax cut capped at $20,000.
What can I upgrade in my home with the low-interest loan?
While a full list of eligible appliances and structural fixes has yet to be released, some of the items you may be able to purchase using your low-cost loan include:
- Rooftop solar panels
- Heating appliances
- Cooling appliances
- Hot water systems
- Home insulation
- Double-glazing for windows
Which households are eligible for the low-interest loan?
There is currently no eligibility criteria available for the low-interest, home energy upgrades loan, however it has been estimated that more than 110,000 households are likely to benefit from the scheme.
When will households be able to apply for the low-interest loan?
There is currently no specified start date for the Household Energy Upgrades Fund. Small businesses, however, can apply for their bonus tax deduction on upgrades completed from July 1, 2023 to June 30, 2024.
How much can energy upgrades help me save on my power bills?
According to the government, households that switch from a 1-star rated appliance to a 3-star rated one could reduce their energy usage by about 30% on average. This means that upgrading home appliances could see almost a third of home energy usage slashed for some households, which in turn could mean big power savings in the long run, depending on the energy plan customers are on.
The social housing upgrades look to offer a similar impact, with it currently estimated that energy usage for 60,000 social housing properties will be cut by one-third once upgrades are undertaken. This will also help these households to reduce their power bills.
Are you on the best electricity plan for your household? Compare against these cheap deals in your state
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3911kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4613kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4011kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
What energy upgrade programs are currently available?
If you don’t want to wait to cash in on the Federal Government’s proposed low-cost loan for energy upgrades, you may be eligible for a smaller energy efficiency program in your state or territory.
Below, we have listed some of the programs currently available to households in select areas. Alternatively, if you are looking for further bill assistance, you can visit our energy rebate and concessions guide for details in your state or territory.
Home Energy Upgrade Programs
- Victoria: Victoria Energy Upgrades for Households rewards homeowners with financial incentives for switching their appliances to more energy-efficient gadgets. Some of the eligible appliances include shower heads, lighting, clothes dryers or heating and cooling devices. According to the program’s website, the average household can save between $120 and $1,100 a year on energy costs depending on the upgrade.
- New South Wales: With the Energy Savings Scheme, households can benefit from reduced upfront costs for switching to more energy efficient appliances, such as LED lighting, air conditioning, pool pumps and hot water systems. Some NSW households on an energy rebate may also be eligible to cash in their rebate for the next 10 years in exchange for a free solar panel installation.
- South Australia: The Retailer Energy Productivity Scheme (REPS) allows households to cash in on reduced upfront costs when they install energy efficient appliances.
- Australian Capital Territory: With the Sustainable Household Scheme, eligible homeowners in the ACT can borrow between $2,000-$15,000 as part of an interest-free loan to go towards energy-efficient upgrades in the home. Some of the eligible products to be purchased under this program include: rooftop solar panels, household battery storage systems, electric heating and cooling systems, hot water heat pumps, electric stove tops, electric vehicles (EVs) and charging infrastructure.
For more details on any of these programs, including the terms and conditions, it is best to visit the relevant government website.
Image credit: Andrew Angelov/Shutterstock.com
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