How one local council helped 1,200 low‑income residents finance solar and home energy upgrades
Could this work in New Zealand? Feedback please. Paris Hadfield, Research Fellow, Monash Sustainable Development Institute, Monash University Most of Australia’s existing homes are old, uncomfortable and expensive to run. Too many are energy inefficient, and rising electricity and gas prices are making things worse. Mainstream programs are supporting home energy upgrades. But the transition isn’t happening quickly enough and risks leaving behind the households that could benefit most. Innovative finance models could help. Local initiatives can make solar and electrification more accessible. Darebin City Council’s Solar Saver program Running from 2014-2025, Darebin City Council’s Solar Saver program helped almost 1,200 low-income and vulnerable homeowners in the area get A$4.8 million worth of home energy upgrades. Council paid the upfront cost of installing solar and, in later iterations of the program, reverse cycle air conditioners and hot water heat pumps. Factoring in state government rebates, these costs were added to the homeowner’s property taxes as a “special rates charge”. The homeowner could then repay this money over ten years – interest-free. Suppliers were selected through council tender to make the process easier for homeowners, while ensuring quality products and services including component and performance warranties. This provided certainty for residents, one of whom said: the council’s not going to get involved with some shonky person who’s going to come in and tell you: “Terribly sorry, we’ve got to double the price because you’ve got a nail in the wrong place on your roof” or something. The scheme reduced financial risks and burdens for low-income homeowners. By using council rates to repay the money, the loan is attached to the property itself rather than the homeowner. This means any remaining debt is recouped if and when the house is sold, avoiding a situation where someone is paying a debt for solar […]
