Update

03 Aug 2020 16:01:51

ACT Labor will offer interest-free loans to make Canberra households more sustainable if they are re-elected in the October territorial elections.

Labor announced a $ 150 million campaign pledge to provide households in the capital with interest-free loans between $ 2,000 and $ 15,000 to help cover the initial costs of installing rooftop solar panels, storing domestic batteries and hot water heat pumps.

If re-elected, Labor has said it will offer the loans from the middle of next year.

ACT Labor Party leader Andrew Barr said politics could see average households cut their bills by more than $ 10,000 over the next decade.

“Each of these technologies will produce savings for a household in terms of energy costs and significantly reduce greenhouse gas emissions,” said the Chief Minister.

“A combination of all of these can save households around $ 2,000 per year, depending of course on the amount of energy consumed and the size of the household.

“This is particularly targeted to a cohort of Canberra households who have indicated that if they had the initial money available to be able to install this type of technology, they would, and this program will make that happen.”

As part of this program, Labor plans to accredit a number of suppliers and allow Canberrans to choose the installer, depending on the type of product they need.

The government would then provide the initial capital, in the form of a zero interest loan, for the purchase and installation.

Customers would then repay the loan over a 10-year period.

“But they would save more on lower energy costs than on loan repayment cost, so households are better off,” Barr said.

“The cost of the initiative is actually the 10-year government bond rate, so for the government it will cost around 1.6%.

“So once fully subscribed, just under $ 2.5 million per year in terms of public cost to taxpayers in general, then they will be the back office to manage the loan portfolio.”

Loans would also be good for jobs in Canberra: Work

According to ACT Labor, this move is expected to create and protect hundreds of local jobs over the next decade.

“The program will not only create new jobs, it will lower the cost of living for households and it will support the adoption of a range of new technologies that will lead to reduced emissions,” Barr said.

ACT is already powered by 100% renewable electricity, and Renew Economy founder and editor Giles Parkinson says the policy is the next step in decarbonizing Canberra.

Mr Parkinson said moving away from gas and fuel for heating and transportation meant the amount of electricity needed to run the capital would increase.

“So you will need more wind and solar generation and [one way of doing that] is to encourage homes and businesses to install it themselves, ”he said.

Mr Parkinson said that using household batteries would also help the grid by storing energy for use during peak periods.

“One of the things we’re going to see in ACT and across Australia is that a huge amount of our future energy needs will come from… distributed energy – things like energy. rooftop solar, heat pumps, battery storage and electric vehicles. ”he said.

“This will be a really important part of the equation and something that has to happen, not just in households that care enough about the rich to go out and buy it now, it has to happen in every part of the community.

“It’s a really exciting transition.”

The electoral commitment was also welcomed by the Climate Council.

“If introduced, this commitment would serve as a win-win for ACT, creating new jobs for the future, reducing electricity bills, while reducing pollution,” said the CEO of the Climate Council, Amanda McKenzie.

Labor urges families to take on debt: Liberals

Energy policy expert Tony Wood of the Grattan Institute has criticized ACT Labor’s policy, saying it does not address financial barriers preventing low-income homeowners from the market.

“I think they need to apply the financial support in a targeted way that really tackles the barrier that exists today,” he said.

“I don’t think in general subsidizing people with government money is necessarily a good idea.”

Canberra Liberal leader Alistair Coe said the Labor project could put many families in Canberra into debt.

“This is a proposal that I think is potentially very irresponsible,” said Opposition Leader Alistair Coe.

“This is a proposal designed to get people who might not otherwise be able to borrow into debt.”

Mr Coe said the real problem with ACT is the rising cost of living.

“When people pay more than $ 500 a week for rent, they pay the jackpot to register their car, they pay the jackpot for other fees and charges, the ACT government’s only solution is to put these families in debt.” , did he declare. mentionned.

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The subjects:

alternative energy, environment, government-state-and-territory, elections-state-and-territory, canberra-2600, act

First publication

03 Aug 2020 06:50:41