Tasmania’s interest-free energy saver loan scheme ends early due to high demand, exhausted funds

For Tasmanians wanting to put solar on their roof or insulate their homes against the state’s renowned chilly winters, the government’s energy saver loan scheme (ESLS) was a welcome relief.

The scheme offered households, small businesses and community organisations interest-free loans of up to $10,000 to invest in energy efficiency measures like rooftop solar, insulation or energy-efficient appliances.

The scheme started in October 2022 and was expected to run for three years.

Instead, it has been stopped a month early after the funding allocation for the scheme was exhausted due to it being oversubscribed.

Tasmania’s Energy Minister Nick Duigan says while the scheme was initially budgeted to cover a loan value of $50 million, it ended up supporting $67 million in loans to Tasmanians.

While the debt is carried by the customer, who often repays on a fortnightly basis, the government covers the cost of keeping the loans interest-free.

“It’s been so well taken up that seven and a half thousand individual loans have been provided through the scheme,” Mr Duigan said.

Running hot

Tasmanian solar installers suspect there will be some short-term impact on their profits, now the scheme is ending.

In the north of the state, Adam Hirst said his company, Home Efficiency Group, has processed around $5 million worth of loans via the scheme.

“It’s been a huge success in removing those financial barriers for people,” he said.

That late rush came as consumers took advantage of the rebates offered by the federal government on batteries, which was able to be combined with the ESLS.

Rob Manson runs a solar business in Moonah in the state’s south and says his company has processed around 600 applications via the ESLS for solar panel installations or batteries over the last three years.

“It (ended) only about a month earlier than planned,” he told ABC Tasmania Mornings.

“We did have an inkling, because we were processing so many applications in such a short space of time, especially in the last couple of months.”

Nigel Freitas, from the government’s loan scheme partner Brighte, said that loan applications made in the final days of the scheme are not guaranteed to succeed and will be subject to remaining available funds.

An uncertain future

Despite the conclusion of the ESLS, other low-cost loans still exist for Tasmanians wanting to invest in energy-efficient measures at home, but the conditions aren’t as favourable.

Many of the loans include reduced interest rates or cover smaller amounts, while other options are also means-tested — meaning they’re not available to everyone.

Mr Duigan said for now, the government needs time to understand the learnings from the scheme, but he expected any future plans will likely be “more targeted” into areas that are “harder to reach”.

In the meantime, he’s keen to highlight the state’s bigger renewable energy projects which include Marinus Link and the recently approved wind farms at Robbins Island and St Patricks Plains.

“Tasmania’s renewable energy agenda is the most meaningful thing our state can do in the climate change space,” he said.

“Those big projects that we’re delivering here in the state have profound effects on carbon dioxide emissions.”

Solar installer Rob Manson sees things from a different point of view.