Tasmania’s Energy Saver Loan Scheme Declared A Success

A government-backed energy efficiency finance program in Tasmania has seen “fantastic” results according to the state’s Minister for Energy and Renewables Nick Duigan.

The initiative was announced in 2022 as an expansion of Tasmania’s Energy Efficiency Loans Scheme and commenced in October that year. It offers interest-free loans of between $500 and $10,000 to eligible households, residential landlords, small businesses and not-for-profit organisations to purchase energy-efficient products including:

• Solar power systems
• Home batteries
• EV charging infrastructure
• Reverse cycle air conditioning
• Solar and heat pump hot water systems
• Induction and ceramic stove tops​
• Energy- efficient whitegoods
• E-bikes
• Double glazing and insulation

The repayment terms are 1 – 3 years and there are no other fees aside from a $4.99 fee that may be applied to late payments (capped at $49.90/year).

According to Minister Duigan, the Energy Saver Loan Scheme has seen more than 6,100 loans since it began.

“This scheme allows energy efficiency upgrades to be accessed by a wider variety of consumers, with a wider variety of budgets,” he said. “The value of the scheme so far is over $51.1 million, with over 78 GWh of energy produced through rooftop solar.”

The number of PV-related loans approved under the program wasn’t mentioned by the Minister.

Clumsy Controversy Before Kick-off

The scheme has come under fire from Tasmanian Labor a couple of times due to requirements the party said locked out many good solar installers. Furthermore, Tasmanian Labor objected to the company that manages all aspects of the scheme’s administration and provides the loans, Brighte – a “Buy Now, Pay Later” (BNPL) finance provider. But Tasmanian Labor wasn’t particularly eloquent in the delivery of its concerns.

Approximately 115 vendors (not just solar installers) are currently approved to participate in the program.

Is Solar Worth It In Tasmania?

While solar energy resources aren’t as robust in Tasmania compared to mainland states, it’s still very much worth installing rooftop PV.

For example, the SolarQuotes solar calculator indicates a 6.6kW system that’s installed in Hobart could achieve simple payback in 6 years, 9 months. This is based on a system cost of $7,500. Solar is generally more expensive in Tasmania than on the mainland, due in part to the solar rebate being lower and increased freight costs for goods transported across Bass Strait.

A big plus is the average quality of a solar installation in Tasmania is the highest in the country due to a 100% inspection regime overseen by the Department of Justice. Solar cowboys don’t last very long there.

You can discover everything you need to know about going solar in Tasmania here. If you want to get quotes via SQ¹ and wish to apply for a loan, just note in the comments you require quotes from installers approved for the Energy Saver Loan Scheme. When discussing/accepting a quote, let the installer know it hinges on the loan and they will kick off the process on your behalf – and pretty quickly I’d imagine.

Trivia: More than 59,713 rooftop PV systems have been installed in Tasmania to date. The Australian PV Institute estimates 21.9% of freestanding and semi-detached houses in the state have solar panels.