Households who meet certain criteria could have applied for an interest-free loan of up to $4,500 to purchase a solar system. The loan must be repaid within 7 years.
These loans helped households without the available funds to purchase a solar system upfront. Purchasing a solar system can help to make your electricity more affordable.
Small businesses were not eligible to apply.
Mrs Smith lives in regional Queensland and purchases a 3 kilowatt solar system with an interest-free loan. Her monthly repayments for a solar loan of $4,500 over 7 years are around $54 per month, or around $645 per year.
Her 3 kilowatt system generates around 4,600 kilowatt-hours of electricity per year and she uses around 65% of this in her home as she is often using power during the day. She saves around $1,000 per year on her electricity bill, including feed-in tariff payments. Therefore, she makes a total saving of around $355 per year ($1,000 saving - $645 loan = $355 total saving).
Note, a home in South East Queensland that pays less for electricity will save less each year from a solar system.
Read more about the financial benefits of solar power.