The financial barriers to going solar are being whittled away – for both homeowners and renters – thanks to a revamp of the state government’s solar rebate program.
From July 1 2019, the state government is offering interest-free loans for solar panel systems in addition to the solar panels rebate. This article explains how the loan works, the financial benefits and eligibility criteria.
First homeowners, then renters too!
Initially the interest-free loan will only be available to homeowners. But towards the end of 2019 renters, together with their landlord, will be able to apply too. From July 1, those in rental properties will be able to access the rebate without the loan.
The loan amount will be equivalent to the value of the rebate. The rebate is worth up to $2,225 – so that means you could get an interest-free loan of up to $2,225, as well as the rebate.
Savings must be more than loan
Interest-free loans must be repaid within 4 years or sooner, if you like. The savings from going solar, over the first 4 years, must be more than the loan. The bill savings information has to be provided by your solar retailer as part of the application process.
Upfront cost reduced
If your application is successful, your solar provider would be reimbursed for the rebate and loan amounts. You would pay your solar retailer any remaining balance. In some cases, depending on the cost of the solar system, you may have no upfront cost.
If you were to purchase a MASH Standard 3kW Solar System, the cost would typically be $4,500. If you were eligible for the maximum rebate of $2,225, this would reduce the cost to $2,275. If you were also able to get the interest-free loan of $2,225, then you would pay $50 upfront with the rest paid back over 4 years at $556 each year. And with typical bill savings of around $600-$700 a year, you’re already ahead from year 1!
The eligibility criteria include:
- a combined household taxable income of less than $180,000 per year
- the property is valued at under $3 million
- you do not have an existing solar PV system (the exception is if you installed your system before 1 November 2009)
All up, this new interest-free loan is well worth considering if you are thinking of going solar.
If you would like to get an obligation-free quote from the MASH community solar bulk-buy, visit mash.org.au or call 1300 466 274. For more information about the Victorian Solar Rebate, visit solar.vic.gov.au