Walk through any suburb, and you’ll not fail to see roof-mounted solar panels in your line of sight.
The International Energy Agency says Australia generates more watts of power (990W) per capita than any country in the world with the Dutch (757W) and Germans (711W) immediately behind us in second and third place.
Solar’s popularity means it’s now a must-have for many buyers.
For family homes and luxury properties, green technology is expected and marked down by buyers if it’s lacking.
Research from Westpac suggests nine out of 10 owners who renovate now include green tech in their plans.
The most popular solutions include solar panels, home batteries, solar hot water systems, insulation and double-glazed windows.
These improvements add capital value, lower bills, address climate issues and achieve energy independence.
The biggest challenge is affordability. A combo of solar panels and battery storage comes with a healthy five-figure price tag.
Lenders are responding, offering so-called green loans at cheaper interest rates than personal loans.
A green loan will demand a 7%-8% interest rate, whereas a personal loan can be anything from 8%-20%.
Government initiatives, such as the Household Energy Upgrades Fund (HEUF), are making a big difference.
HEUF was established two years ago with a $1 billion grant, and it is managed by the Clean Energy Finance Corporation.
Before advancing your plans, you should be aware green loans do not necessarily cover every product and every installer. Some loans will only be offered if you use accredited installers and equipment.
A lender may even encourage you to undertake a third party energy assessment of your home to ensure the loan is used appropriately.
Again, depending on the conditions of the loan being applied, the loan may cover insulation upgrades, double glazing, solar power, and efficient heating and cooling systems.
Specific green loan products, such as the CommBank Green Loan and those supported by HEUF, support other eligible items, including:
* Electric and induction cooktops
* Electric-vehicle charging stations
* Air-conditioners (HEUF loans)
* Ceiling fans (HEUF loans)
* Pool pumps (HEUF loans)
Each lender will have its own specific list of eligible products. Occasionally, restrictions on particular brands and installers may apply.