Zero percent interest for solar loans in Tasmania

Author: Darvin Tocmo  Date Posted:15 August 2016 

Tasmania will soon offer zero interest in solar loans for homes and small businesses.

Tasmania will soon offer zero interest in solar loans for homes and small businesses.

tasmania-interest-free-solar-loans

Tasmania can feel the strong presence of solar power. Its government is serious about improving the state’s energy efficiency with interest-free solar loans scheme.

The project is good news for all households and small businesses. Once implemented, they can avail of funding assistance to install solar power systems.

It’s a huge improvement from the state’s current energy efficiency loan scheme. The existing scheme only covers those who are low-income earners and excludes the purchase of solar panels.

How much solar loans can residents expect

The solar loans scheme reportedly has total funding of $10 million. Households may avail of loans up to $4000, while small businesses can get as much as $10,000.

The Tasmania Government has yet to reveal the exact details of the scheme. Energy Minister Matthew Groom mentioned, however, that they want to extend it. The extension includes solar hot water. But, it will apply to other appliances, for instance, a heat pump.

The Minister assured everyone that the scheme will take-off by the end of this year.

Solar power is key to increasing electricity bills

Tasmania experienced a hit in electricity bills after July’s power price increase. Switching to solar would be a smart move at this time. It's reasonable especially since installation costs of solar power has dropped dramatically.

However, many hold back from getting solar panels on their rooftops because of the up-front investment. Not many companies can avail of commercial solar PPA for zero up-front expenses. This is particularly true for small businesses.

Likewise, many households do not qualify, or may not be interested in the existing loans scheme. This is because solar panels are out of the picture in the current scheme.

There’s no guarantee that electricity prices in Tasmania won’t increase or that solar feed-in tariff payments would change. What we’re sure of is that once implemented, the new solar loans scheme will solidify solar power’s role in Tasmania’s energy mix.