New solar battery loans to help save on energy bills

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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 10 years.

The battery loan is part of the Victorian 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 instal 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% to about 60%, on average.

“To achieve our nation-leading renewable energy target of 95% by 2035, it is vital households transition to running on cheap, reliable, renewable energy,” D’Ambrosio 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.”

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 6 kWh battery and rise to about $17,000 for an 11 kWh 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% by 2035, and net zero emissions by 2045.