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Victoria’s New Interest Free Solar Battery Loans Explained

Overview of Victoria’s Solar Battery Loans

In a nutshell, these new loans allow Victorian homeowners to finance a solar battery system over 4 years without paying any interest. Billed as “interest-free solar loans”, they provide up to $4838 towards the purchase and installation of a solar battery.

To qualify, you need to meet a few basic criteria:

  • You must live in Victoria (not surprisingly)
  • You need to already have solar PV panels on your roof
  • Your household income can’t exceed $210,000 per year
  • You need to use an approved solar retailer and battery model

The idea is that by breaking up the cost over 4 years, adding a battery becomes affordable for more solar households. Paying off the loan over time means you don’t have to fork over a huge chunk of cash upfront.

Once approved, your loan will be paid directly to your chosen solar retailer. You then pay back the loan in instalments via your power bill.

The loan stays with the property, not the owner. So if you sell before it’s paid off, remaining repayments simply transfer to the new owner.

Overall, the key perks are clear:

  • $4838 at zero interest towards a solar battery
  • Increased solar savings from storing excess energy
  • Loan paid via power bill for 4 years
  • Minimal impact on cash flow


Who Can Benefit from the Loans?


Now, let’s chat about which solar households stand to gain the most from these interest-free battery loans.

Ideally, the loans offer the biggest bang for homeowners who:

  • – Currently export a lot of unused solar power
  • – Experience frequent blackouts
  • – Run major appliances during peak times

Let me break down why.

First up, if your solar system already produces more power than your home uses each day, adding a battery prevents excess energy from being wasted. A battery stores your surplus solar generation for use at night instead of exporting to the grid for measly feed-in tariffs. More energy kept in-house equals bigger savings!

Secondly, a battery’s backup power supply can keep your essentials running during grid outages. No more scrambling for candles when the lights cut out. For properties with an unreliable grid connection, this backup capability is a game-changer.

Lastly, batteries help reduce daily peak demand charges. By storing solar power for use in the evening when rates are highest, you’ll save on running appliances like air con after work. Battery optimization can seriously minimise the bite of peak usage rates.

Of course solar batteries offer advantages for all PV households. But these three factors – high exports, frequent blackouts, and peak hour usage – mean the loan repayments are offset by bigger savings in the long run.


How the Loans Work


Alright, let’s get into the nitty gritty of how these solar battery loans work so you can decide if applying makes sense.

First up, you’ll need to check that you and your property meet the eligibility criteria. We touched on this earlier, but as a quick recap:

  • – You must be located in Victoria
  • – Your household income is under $210K/year
  • – You already have solar PV installed
  • – Approved battery model and retailer


Applying for the program involves:


  • – Getting quotes from approved suppliers and installers
  • – Submitting an online application form
  • – Signing a loan agreement


You can start your application or find more details at https://www.solar.vic.gov.au/battery-loans


If all is good so far, you can submit an online application through Solar Victoria. You’ll need to provide documents verifying income, PV ownership, and electricity bills.

Once approved, you get to choose any battery system from Solar Victoria’s list of approved products and retailers. Do your research to pick the right size and tech option for your home.

The retailer will then order and install your chosen battery using the interest-free loan for payment. Make sure to chat with them about optimising the system to maximise solar self-consumption.

You’ll start repaying the loan in instalments on your electricity bill following the battery’s installation. Repayments are spread over 4 years to minimise the monthly impact on your household budget.

Early repayment is an option too if you sell your home or just want to pay it off quicker. No sneaky early exit fees here!

Wondering what happens if you default on the repayments? Well, the loan is secured against your property through a caveat. Default could eventually lead to your home being repossessed if no alternate payment arrangement is made.

So in summary, if eligible, you get approved interest-free financing for a quality solar battery without huge upfront costs. Just make sure to factor the loan repayments into your household budget as you would any other essential utility bill.

With all the key details covered, let’s wrap up with the pros, cons.


Loan Analysis and Cost Savings

Alrighty, we’re in the home stretch! To wrap things up, let’s summarise the key pros and cons of these solar battery loans.

Starting with the good stuff:



  • Interest-free loan over 4 years
  • No huge upfront payment needed
  • Optimised solar savings from stored energy
  • Backup power during blackouts
  • Reduced peak demand charges
  • Can repay early with no penalty


Now the not so good:


  • You take on 4 years of repayments
  • Missing payments risks property repossession
  • Savings may not offset repayments for all households
  • So who should seriously consider applying?


In my view, these loans make the most financial sense for households that:

  • Currently export a lot to the grid
  • Experience frequent power outages
  • Use a lot of electricity during peak times


For properties with these factors, the cost savings should outweigh the loan repayments over the long-term.

Of course, your solar retailer can provide a detailed analysis on the payback period specific to your home. But the bottom line is that with interest-free financing, solar batteries become a viable investment for more Victorian households.

Hopefully this overview gives you a clear sense of what these loans entail. Don’t hesitate to drop me a line with any other questions! Wishing you the sunniest savings ahead.