New South Wales lowers income threshold for Home Energy Saver loans

The New South Wales government is tightening eligibility rules for the Home Energy Saver program to prioritize low and middle income households.

State energy minister Penny Sharpe announced the change after the program approved more than 15,000 households for zero interest loans in its first five months. The government plans to reduce the combined taxable income threshold for applicants from $210,000 to $150,000 starting on 10 November.

While the eligibility criteria are becoming stricter, the total investment of $557 million remains unchanged. The program provides loans of up to $15,000 with repayment terms of up to 10 years to help residents install energy upgrades like solar panels, household batteries, and insulation. These upgrades aim to lower electricity bills by removing the hurdle of high upfront costs.

So far, participants have been identified across 539 postcodes, with 47 per cent of households located in Greater Sydney and 53 per cent in regional and coastal areas such as Armidale, Broken Hill, Dubbo, and Port Macquarie. The NSW Minns Labor government says the initiative also supports over 700 suppliers and installers across the state.

David McElrea, CEO of the Smart Energy Council, stated that the high demand for these loans demonstrates a readiness among households to invest in cheaper energy while creating jobs for local businesses.