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The Australian government has been urged to “look to the future” when establishing the parameters for a AUD 1 billion ($670 million) funding package that will offer low-cost finance to people to upgrade the energy efficiency of their homes with products such as solar panels.
As reported by PV Magazine, more than 110,000 Australian households could soon have access to AUD 1 billion in low‑interest loans to help make energy efficient upgrades to their homes as part of a new budget initiative, but the Master Electricians Australia (MEA) trade organization has called on the federal government to adopt a “holistic approach” when setting the loan criteria.
The AUD 1.3 billion Household Energy Upgrades Fund will provide households with access to discounted finance to increase sustainability across the housing sector, including through investment in energy efficiency upgrades, high-performing appliances and battery-ready PV.
The fund includes AUD 1 billion in discounted loans to help households install solar panels, replace gas hot-water system and stoves with electric alternatives, double-glaze their windows and undertake other energy efficiency measures. It will also provide AUD 300 million to support energy performance upgrades to social housing which will be co-funded and co-designed with the states and territories.
MEA Chief Executive Officer Malcolm Richards said while solar panels and high-efficiency electric hot water systems are worthy of support, new technologies are emerging that will potentially provide greater benefits to households and the nation.
Richards urged the government to consider supporting households to invest in bi-directional electric vehicle (EV) charging points that would allow people to draw electricity from their car batteries at peak times and charge them when demand for electricity is lower.
While the final detail of the Household Energy Upgrades Fund is yet to be published, the AUD 1 billion scheme will be overseen by Clean Energy Finance Corp. (CEFC) which will work alongside private lenders to deliver the program. The scheme is expected to start next year.
The fund is part of a larger AUD 1.6 billion “energy savings plan” outlined in the budget. This includes AUD 314 million in tax deductions for businesses with a turnover of less than $50 million that invest in renewable energy and energy efficiency measures.