Green Loans in Australia

Australian Government Green Loans Programme was providing up to $10K of funding to those who cannot afford solar powered systems. The low interest loan was designed to bring solar power into homes, which after rebates still could not afford the technology. However, on February 19, 2010 the Government announced phasing out green loans. On July 8 the minister for the Climate Change and Energy Efficiency confirmed the earlier decision on Green Loans.

The green loans in Australia are replaced with Green Start grants. Green Start is delivered in two rounds. Round one will provide funds for on-site energy assessment. Government will sponsor qualified individuals or organisations which will assess energy efficiency of the house. Grants in round one are awarded to individuals who provide high level of assessment within a competitive process.

Round two will provide grants to qualified individuals or organisations, which will help low income households to improve energy efficiency. In other words: once doctor makes diagnosis in round one he delivers the cure in round two.

The difference is that the previous green loan was offered to the household. Now, the system provides it directly to businesses, which must fix the green gas emission problem for each household application.

What About Earlier Green Loan Applications?

Australian Government assures that earlier applications, which were signed by the relevant departments are honored. However, no new applications are accepted under the Green Loan Programme.

This also means that the Department for Climate Change will process all invoices, which were correctly completed by the assessors under the old system. However, contractors and assessors must not continue any work, which applies to the previous scheme.

Green Loan And The Private Sector

There are number of banks, which will assess your purchase for green loans. Green loans in Australia offer a lower interest rate (eg. Bendigo Bank offers 1% discount) thus there are strict conditions for the purchase under this scheme. Products which may qualify for green loans in Australia from banking institutions are:

  • Double glazing
  • Environmentally friendly Vehicle
  • External Awnings
  • Greywater Treatment System
  • Insulation
  • Micro-hydro System (continual flow of the water source)
  • Retrofit Kits (solar collectors)
  • Solar Hot Water Heaters
  • Water Storage Tanks
  • Wind Turbine

Some banks no longer offer green loans in Australia. This is in line with the Australian Government decision to stop the scheme. Westpac will only honour applications for green loans prior to the 23rd of February 2010.