In a move to help Aussies combat rising energy costs, the government has launched a $160 million initiative aimed at helping homeowners make energy-efficient upgrades.
Announced on Sunday, Westpac’s Sustainable Upgrades Home Loan will allow homeowners and investors access to low-interest loans earmarked for common green upgrades, including the installation of solar panels, solar batteries, electric vehicle chargers, double-glazed windows, and enhanced insulation.
Through this initiative, eligible customers can secure loans with a competitive variable interest rate of 4.49 per cent, significantly lowering the price of entry for adopting energy-efficient technologies.
According to government estimates, a homeowner taking out a $30,000 loan over ten years could save approximately $3,475 in interest payments under this scheme.
Energy Minister Chris Bowen said the potential benefits for Australians were life-changing.
“This innovative collaboration will give Australians more opportunities to benefit from the energy transition and ease cost-of-living pressures,” he said.
This latest mountain of money promised by government officials will enable Westpac to fund up to $320 million in loans, allowing more than 110,000 customers, both new and old to borrow up to $50,000 for sustainable home improvements.
Jason Yetton, Westpac’s consumer chief, highlighted the growing demand for such initiatives, noting that “of the two-thirds of Australians looking to renovate their home within the next five years, nine in ten would consider making a sustainable upgrade.
This initiative is part of a broader government strategy to enhance energy efficiency across Australian homes, with the latest investment being described as a “key component” in the nation’s broader $1 billion Household Energy Upgrade Fund.
In May 2023, the government also committed $60 million through lender Plenti to offer more affordable financing options for green upgrades.
Assistant Minister for Climate Change and Energy Josh Wilson underscored the importance of making homes and businesses more energy-efficient as a means of reducing the cost of living and cutting emissions.
“This investment will help people with older homes and appliances that don’t meet modern energy standards to upgrade and keep money from leaking out the door,” Wilson said.
How much can you save by going green?
With the initial cost of installing eco-friendly upgrades usually the sticking point for Aussies looking to tighten their wallets, how much can you actually save by going green?
Well, it turns out quite a bit. Just for solar systems alone, which now sit on over three million Aussie homes, homeowners save $400 per year per kW as a general rule of thumb.
So by installing a 6kW solar system which usually runs a price tag of anywhere from $4000 to $6000, homeowners are looking at $2,400 in savings each year.
Bigger systems like a 10kW promise an even greater return but run a higher initial price point of around $7500 to $10500.
Other smaller upgrades to your hot water system and heating can also rake in some extra cash, offering an average of $100-$200 annually and $150 to $600 return every year, respectively.
Keep in mind that these are averages, and your mileage may vary depending on where you are in Australia’s climate. Homes up north in the sunshine state are bound to get a lot more mileage out of beefy solar upgrades than those living through Melbourne’s winter snap, and vice versa for heating upgrades.
Be sure to check with your local council’s recommendations when it comes to green upgrades.
