Did you know that the Victorian Government is offering interest-free solar loans to households for approved solar power systems?
Worth up to $1,400, the interest-free government loan is part of the Solar Homes Program, a $1.3 billion Victorian Government scheme designed to help 770,000 Victorian households and businesses take control of their energy bills and cut CO2 emissions.
Whilst public awareness of the Victorian solar panels rebate is high, not as many people know that you can also apply for a no-strings, no-interest government solar loan. The loan is repayable over four years or can be repaid sooner in one lump sum – and there are no fees or hidden costs.
Interest-free loan cuts upfront cost of solar
The purpose of the zero-interest loan is to help reduce the upfront cost of getting solar panels installed and make solar systems even more affordable.
Together the Victorian Government’s solar loan and solar panels rebate are worth up to $2,800 – money that’s directly deducted off the cost of your solar power system.
Interest-free solar loan – available to Victorian homeowners and rental properties
The good news is that both homeowners and renters (through their landlords) can apply for the interest-free loan through the Victorian Solar Homes Program.
More good news is that the interest-free loan is an extra financial incentive on top of the solar panels rebate for Victorian homeowners and rental properties. This means you can get the solar panels rebate + interest-free loan – but you can’t apply for the interest-free loan on its own (who would want that anyway?).
|Solar panels rebate||Solar interest-free loan (only available in conjunction with the solar panels rebate)||Total|
|Homeowners||Up to $1,400||Up to $1,400||Up to $2,800|
|Landlords (residential properties)||Up to $1,400||Up to $1,400||Up to $2,800|
Who’s eligible for the interest-free solar loan?
Step 1: You first need to be eligible for the solar panels rebate
To be eligible for the Victorian Government’s interest-free solar loan, you first need to meet the eligibility criteria for the solar panels rebate. These criteria are very broad brush, i.e. your home must be worth less than $3m and your joint household income must not be more than $180,000. However, there are some subtleties you should be aware of and they’re definitely worth checking out.
Step 2: You then need to meet the – straightforward -eligibility criteria for the solar loan
Once you are approved for the solar panels rebate, you’re pretty much there when it comes to the loan.
The only loan eligibility criteria you’ll need to meet is that your solar power system must be cash flow positive. What this means is that the monthly repayments on the loan MUST be less than the monthly electricity bill savings from your solar power system.
You don’t need any collateral to apply for the loan.
How much are the monthly loan repayments?
Assuming you’re eligible for the $1,400 solar panels rebate, you’ll also be able to apply for an interest-free loan of the same value, i.e. $1,400. Given that the loan is repayable over 4 years, this means your loan repayments will be $1,400 / 48 months = $29.16 a month.
A quality solar power system designed by a reputable solar retailer should be cash flow positive. If not, the solar system isn’t worth having!
This means that the monthly electricity bill savings you’ll need to be getting from your new solar power system must be more than $29.16 a month.
With rising electricity prices and solar systems becoming ever more efficient, it’s not hard to save that much with a well-designed solar panels system. We’d expect to be able to save you at least 5x that much on a typical 6.6kW Melbourne solar power system – if not more!
Interested in a cash flow positive solar system that ticks all the boxes?
Get in touch if you’d like a quote for a cash flow positive solar power system that meets the requirements of the Solar Homes program. We can also answer any questions you have on the application process for the Solar Homes solar panels rebate and interest-free loan.
You’ll be saving money off your electricity bill from day 1!
We can also help with additional low-cost solar financing if that’s of interest. Combining the government zero-interest loan with low-cost financing can reduce your upfront cost on a 6.6kW solar panel system to around $100. And, even with the additional financing, we can make sure you’re ahead from day 1.
Check out our Melbourne solar panels deals for prices and info.