Victorians could save $890 on power bills next year under Andrews Government solar panel plan

VICTORIANS will save hundreds a year on their power bills under a $1.2 billion Andrews Government plan to install solar panels on 650,000 homes. Here’s how it’ll work.

VICTORIANS will save $890 a year on their power bills under a $1.2 billion Andrews Government plan to install solar panels on 650,000 homes.

In the first shot of the election, the Sunday Herald Sun can exclusively reveal the government will today announce that if re-elected it will pay $4450 upfront for the installation of rooftop panels on 90 per cent of owner-occupier homes.

Households will only have to repay half the cost of the panels and will be given four years to pay their share.

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Tracey and Clive Mottershead with their daughter Olive age 5 looking happy about having solar panels. Picture by Wayne Taylor 18th August 2018.

It can also be revealed that in a bid to protect the solar industry from stalling before polling day, the government has put aside $68 million for a “Solar Homes” program that gives households a 50 per cent rebate on installation costs immediately.

The plan will thrust the cost of living into the spotlight for the November 24 election while also giving Labor ammunition against the Greens. The green scheme will be limited to households earning less than $180,000 and with properties valued at less than $3 million.

It will create almost 5500 jobs.

“We know the cost of living is going up and it’s getting harder to make ends meet,” Premier Daniel Andrews told the Sunday Herald Sun.

“That’s why Labor is helping families with their energy bills. Only Labor will put solar panels on your roof to cut your electricity bills by around $900 a year.”

The solar spree would be rolled out over 10 years to ensure safety is maintained, with a new accreditation program and regular inspections and audits to ensure there is no repeat of the Rudd government’s shambolic $2.6 billion home insulation program that was linked to three deaths.

Victorians will save $890 a year on their power bills under a $1.2 billion Andrews Government plan to install solar panels on 650,000 homes. Picture: AP

Over the decade, the Andrews Government scheme will take the number of Victorian homes with rooftop panels to one million, and cut carbon emissions by almost four million tonnes — the equivalent of taking a million cars off the road.

More than 330,000 homes in Victoria already have rooftop solar panels. The government’s promise is for medium-sized 4kW systems, and say this will mean an average saving of $890 — including money from electricity fed back into the grid.

Feed-in tariffs will remain in place.

If families want to install bigger systems they can, but will only be eligible for the $4450 government subsidy — half of which has to be repaid. After the four-year repayment period, families would still be $1335 better off, while continuing to reap savings year after year.

If Labor is re-elected, the interest-free loan plan would begin in July, meaning there would be no upfront costs for homeowners.

The dramatic move comes almost a week after Mr Andrews slammed the state’s privatised energy sector and promised “bold decisions” before the November election.

Energy Minister Lily D’Ambrosio said a privatised market had led to companies “ripping off customers and getting away with it”.

A new independent agency called Solar Victoria will be set up to manage the rollout, with $9 million for the accreditation of 4500 electricians. The full upfront cost of the scheme is expected to be $2.48 billion over 10 years, but half of that would be returned to government.

Tracey Mottershead is thrilled with her family’s solar panels, which significantly cut their power bills.

“Over summer we basically just pay the supply cost as the energy our panels feed into the grid offsets any power we need to buy,” she said.

“According to our bills, we use less power than the average one-person household, which is fantastic.”

Premier Andrews said landlords already got generous tax concessions to make improvements to homes that the state government could not match.

“They essentially get a rebate, a tax credit, on improvements they make to the home.”

He said it was a challenge to put enough panels on high-rise developments to effect change to bills.

But he said his plan would give households a level of control over their energy bills that they had not had.

Mr Andrews said the detailed planning of the roll out will be left to the new Solar Victoria agency.

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HOW IT WOULD WORK

* Homeowners check eligibility with new agency Solar Victoria, set up after the election

*Independent verification that household income is less than $180,000 a year and property is worth up to $3 million

*Accredited installer to assess house for sun access and size of panel system suitable

*Some households likely to go on a waiting list given the scheme is run over 10 years

*Solar Victoria pays up to $4450 for the new system from July next year

*Accredited electricians install the panels

*Homeowners start saving on their power bills immediately

*Homeowners have four years to return half the installation costs (up

to $2225).

*Prior to the new scheme, eligible households can apply for a 50 per cent rebate on installation costs through new $68 million program launched today

BY THE NUMBERS

650,000 homes to get solar panels

$890 annual bill saving for 4kW system

$4450 installation cost paid upfront by government

$2225 paid back by homeowners

4 years to pay back interest free loan

5500 jobs created

4500 electricians to be accredited

4,000,000 tonnes of carbon emissions cut

12.5 per cent of Victorian renewable energy target to be met

$3,000,000 maximum home value to be eligible

$180,000 maximum household income to be eligible

$1,240,000,000 cost of the scheme

$68,000,000 for 50 per cent installation rebate until new scheme is set up

Head to www.solar.vic.gov.au or contact Solar Victoria on 1300 363 744

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