For many NSW households, the biggest barrier to installing solar, adding a home battery or improving their home's energy efficiency isn't necessarily whether the upgrade makes sense — it's the upfront cost.
The NSW Home Energy Saver program is designed to help reduce that barrier.
Eligible NSW homeowners and landlords can access a zero-interest loan of up to $15,000 to help fund approved energy-saving upgrades, including eligible solar and battery systems.
For households already considering solar or battery storage, this creates an opportunity to investigate whether an energy upgrade can be completed without having to fund the entire cost upfront.
But before choosing a system, it's important to understand how the program works, who may be eligible and — most importantly — what type of energy system actually makes sense for your home.
The Home Energy Saver program is a NSW Government initiative designed to help eligible households improve the energy performance of their homes.
One component of the program provides eligible homeowners and landlords with access to a zero-interest loan of up to $15,000 for approved home energy upgrades.
The loan can be repaid over a period of up to 10 years, potentially allowing households to spread the upfront cost of an eligible energy upgrade over a much longer period.
Unlike a rebate, however, the $15,000 is not free money.
It is a loan.
The important difference is that eligible applicants pay zero interest, subject to the terms and eligibility requirements of the program.
Eligible upgrades under the Home Energy Saver program can include a range of technologies designed to reduce household energy consumption or improve the way energy is generated and used within the home.
For homeowners considering renewable energy, two of the most relevant technologies are:
A rooftop solar system generates electricity during daylight hours that can be used directly within the home.
Every kilowatt-hour of solar electricity consumed inside the property is electricity that doesn't need to be purchased from the grid at that time.
The financial benefit therefore depends heavily on factors such as:
A battery allows electricity to be stored and used later.
For a home with rooftop solar, this can mean storing excess solar electricity generated during the day and using it during the evening or other periods when the solar system isn't producing enough electricity.
A battery may be particularly worth investigating for households that:
The right solution will vary from property to property.
Eligibility requirements apply.
Under the current NSW Government program information, applicants for the zero-interest loan generally need to:
Landlords may also be able to participate, subject to the applicable program requirements.
Eligibility should always be confirmed against the current NSW Government criteria before committing to an installation.
Eligible applicants can access a zero-interest loan of up to $15,000.
The NSW Government states that the loan may be repaid over a period of up to 10 years.
The fact that $15,000 is available, however, doesn't mean every household should automatically spend or borrow $15,000.
That's an important distinction.
The goal should be to determine the right energy upgrade for the property first, and then determine how the available finance and incentives can help fund it.
This is where a proper assessment becomes important.
There isn't one answer that applies to every household.
Solar may be the logical first technology to investigate.
A properly designed solar system can reduce the amount of electricity purchased from the grid during daylight hours.
The appropriate system size will depend on the home's electricity consumption, roof space and how electricity is used throughout the day.
A battery may deserve closer investigation.
For example, a household may generate substantial excess solar electricity during the middle of the day but purchase electricity from the grid again during the evening.
A battery could potentially store some of that excess solar generation for use later.
Whether that produces a strong financial return depends on the household's actual electricity profile.
The two systems should ideally be designed together.
Rather than simply installing the maximum amount of solar and the largest battery that fits within a budget, the system should be modelled around how the household actually consumes electricity.
That can include analysing:
No.
This is one of the most important things homeowners should understand.
The Home Energy Saver zero-interest loan is finance that must be repaid.
It should not be described as a "$15,000 rebate".
However, the fact that no interest is charged can potentially reduce the financing barrier for eligible households that would otherwise need to fund the entire system upfront or use interest-bearing finance.
There may also be other incentives or discounts available depending on the household, technology and timing of the installation.
Those programs have their own rules and should be assessed separately.
Potentially, depending on the particular program and the customer's eligibility.
NSW households may encounter several different types of energy support, including loans, discounts, certificate-based incentives and other government programs.
But these shouldn't simply be added together based on an advertisement.
Each program can have its own requirements relating to:
That's why the better approach is to assess the property and customer first, then identify which incentives may legitimately apply.
There isn't a universal savings figure.
Be cautious of anyone promising that every household will save a particular percentage on its electricity bill.
Actual savings depend on the property.
For solar, important variables include:
System size
A larger solar system generates more electricity, but that doesn't automatically mean it produces the best return.
Daytime consumption
Solar electricity used directly inside the home can reduce grid electricity purchases.
Electricity tariff
The value of avoiding grid electricity depends partly on what the household would otherwise have paid for that electricity.
Solar exports
Excess solar may be exported to the grid, but export rates can be considerably different from the retail price paid to purchase electricity.
For batteries, the calculation also needs to consider:
Available excess solar
How much energy is actually available to charge the battery?
Evening consumption
Is there sufficient consumption later in the day to make use of the stored energy?
Electricity pricing
Does shifting energy from one period to another create meaningful value?
Battery size
An oversized battery may add unnecessary capital cost if the household cannot regularly use its available capacity.
Government support can improve the affordability of an energy upgrade.
It cannot make a poorly designed system good.
That's why the process shouldn't begin with:
"How much can I borrow?"
It should begin with:
"How does my household use electricity?"
From there, a suitable solar and battery configuration can be investigated.
Only after that should available loans, rebates, discounts or other incentives be applied to the project.
A sensible process looks like this:
1. Analyse the household's electricity usage
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2. Review any existing solar system
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3. Understand daytime and evening consumption
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4. Determine whether solar, battery or both should be investigated
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5. Design an appropriately sized system
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6. Check available incentives and Home Energy Saver eligibility
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7. Compare the investment against expected energy savings
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8. Make an informed decision
If you're considering using the Home Energy Saver program for solar or battery storage, having a few pieces of information available can make the assessment much easier.
Ideally, have:
For households with an existing solar system, solar monitoring information can also be useful.
This is another reason not to design an energy system solely around today's electricity bill.
If your household expects to purchase an electric vehicle, convert appliances from gas to electricity, install a heat pump or otherwise increase electricity consumption, the future load should be considered when designing the system.
A solar and battery system expected to operate for many years should take reasonable future energy requirements into account.
The NSW Home Energy Saver program could make solar, battery storage and other energy upgrades more accessible for eligible NSW households by reducing the upfront financing barrier.
Eligible homeowners and landlords may be able to access up to $15,000 through a zero-interest loan, repayable over up to 10 years.
But the loan itself shouldn't determine what you install.
The right approach is:
Understand your energy use.
Design the right system.
Identify the incentives you may qualify for.
Then calculate whether the investment makes sense.
That gives homeowners a much stronger basis for making a long-term energy decision.
Ador Energy can assess your household's electricity usage, existing solar system and energy requirements to help determine whether solar, battery storage or a combined solar-and-battery system is worth investigating.
We can also help you understand which current energy programs may be relevant to your proposed installation.
Request your Home Energy Saver solar & battery assessment.
Eligibility for government programs, loans, rebates and incentives is subject to the applicable program rules and approval requirements. Program details may change. Customers should confirm current eligibility and terms before making a financial commitment.