Fewer Canberra households will now be eligible for interest-free loans to install solar while body corporates will be encouraged to put panels on apartment rooftops, as part of an overhaul of the ACT government’s Sustainable Household Scheme.

The scheme provides interest-free loans of up to $15,000 over 10 years for home owners to help cover the up-front costs of installing energy efficient products like solar panels, electric stove tops, electric heating and cooling systems, and insulation, or to purchase an electric vehicle.

Since starting in September 2021, 13,000 home owners have accessed the program, or 5 per cent of houses in the ACT.

As part of Tuesday’s budget, the government will invest an additional $80 million in the scheme.

But there will be big changes to the eligibility criteria from July.

The scheme has so far been assessed on a property’s 2020 unimproved land value, with the threshold set at $750,000.

But from next week, only those with a 2022 unimproved land value of $450,000 or less will be able to apply for loans for solar products.

Benn Masters from SolarHub ACT expects tightening the eligibility criteria will see fewer households take up solar. 

“Ultimately, this doesn’t really align with what the government’s trying to do and that’s to increase uptake of solar,” he said.

“These changes are going to see the industry contract, particularly the solar panel component and that’s going to probably result in some job losses, I suspect, and perhaps some businesses folding as a result.” 

Body corporates encouraged to install rooftop solar

The blow to solar businesses may be softened a little by a new ACT and federal government incentive for body corporates to install shared rooftop solar on multi-unit apartments.

Under the $3.6 million scheme, body corporates will be able to access up to $100,000 for rooftop solar: half through a Commonwealth rebate or Solar Banks grant, and the other half as an interest-free loan through the ACT’s Sustainable Households Scheme.

The program is expected to benefit 2,100 households living in unit complexes.

Eligibility for the program will be the same as for households, with 92 per cent of apartments expected to qualify.

Unapproved land values now based on 2022 figures 

The number of households that can access interest-free loans for other energy-efficient products covered by the scheme is also being reduced.

For all products other than solar, the unimproved land value eligibility amount will remain at $750,000, but will now be based on 2022 valuations, instead of 2020 figures.

With land values skyrocketing in recent years, many homes that are eligible now soon won’t be.

Jeremy Watson from Alexander Watson Home Insulation warns the changes will leave some households behind.

He said until now, the scheme had made insulation affordable for the “middle cohort” who couldn’t otherwise pay for the improvements.

“We’ve got so many of our clients that are accessing the Sustainable Household Scheme at the moment that are relying on that 2020 property value and as soon as you move the goal posts to 2022, it’s going to exclude so many more,” he said.

“I don’t think we should have uneven accessibility across our market. Everyone should get the chance to get the right insulation in their Canberra home.”

Chief Minister Andrew Barr has defended the changes, saying the scheme will better target low and middle income households.

“We’ve got a lot of rooftop solar now, we don’t need to subsidise that much more while we do need to support this transition from gas to electric and from petrol and diesel to electrics in transport,” he said.