Solar banks and electrification: Governments invest $206m to close the energy gap

The Australian and New South Wales governments have tipped a combined $206 million into energy saving upgrades for social housing properties in the state and a solar sharing scheme, to help address the cost-of-living for more than 30,000 disadvantaged households.

The move to upgrade some of the least energy efficient homes in the country was announced on Monday, alongside the launch of the Albanese government’s Solar Banks program – a plan unveiled back in 2021 promising to extend the benefits of solar to those households “locked out” of the market, either economically or logistically.

When announced before the 2022 federal election, the Solar Banks policy proposed allowing households to buy a share of a medium-scale solar farm. The $30 million committed to the scheme this week, however, also aims to help low-income households and apartment residents install rooftop PV.

Those households that simply cannot install rooftop solar on site, meanwhile, will be eligible for a subsidy to purchase a  portion of a ‘solar garden,’ or community energy plot.

It is hoped that more than 10,000 households will be able to access the Solar Banks program, which could help save households a vital $600 a year on their electricity bills.

The $206 million investment in energy efficiency and electrification for social housing properties also promise to deliver major bill savings – according to the NSW government, upgrading an average home from a 1-star energy efficiency rating to a 3-star rating can cut energy consumption by as much as 30%.

To this end, the Commonwealth and NSW governments will provide matched funding of $87.5 million over four years, with more than 24,000 homes to be eligible for upgrades including heat pump hot water systems, ceiling fans, reverse-cycle air conditioners, solar systems, insulation, and draught proofing.

Eligible households include a mix of NSW government-owned and managed homes as well as properties overseen by community housing providers. The investment is likely to come as a welcome relief for many thousands of New South Wales residents hoping to stay cooler in the summer and warmer in the winter, while also saving on their electricity bills.

“Saving energy means saving money, which is why we’re continuing to deliver cost of living relief for families that need it most without adding to inflation,” said Prime Minister Anthony Albanese.

“This $206 million package will mean 30,000 households across New South Wales will be able to access upgrades that will make their homes more energy efficient.

“We want all Australians to have access to cleaner, cheaper energy. Renewable energy for social housing helps power bills and is good for the environment.”

Priority will be given to the least energy-efficient properties which are often those homes built prior to minimum construction standards. Priority will also be given to those locations that experience extremes in weather.

“The Albanese government is helping those who can’t currently access energy upgrades and solar power reap the rewards of the clean energy transformation,” said federal energy and climate minister Chris Bowen.

“Today’s announcement comes on top of our Energy Price Relief Plan, which is supporting 1.6 million eligible NSW households with $500 off their bills.”

A further $1 million is also being invested in community renewable energy projects on the Far South Coast, with funding expected to go to local clean energy projects.

“Our number one priority is helping people across NSW with the cost of living, and helping with power bills is a key pillar of that,” said NSW Premier Chris Minns.

“We are investing to save people money while also getting NSW’s energy transition back on track.”

A welcome spend

Solar Citizens CEO Heidi Lee Douglas said on Tuesday that $206 million investment in social housing energy upgrades was a welcome announcement, but that plenty more could be done, including moves to fund home battery storage.

“Solar Citizens has been alongside the community sector in calling for this and we’d like to see the initial investment expanded to include a plan and timeline to deliver rooftop solar for all suitable social housing properties.

“Rolling out rooftop solar on social housing can save low-income households an average of $860 per year,” Douglas said.

“Adding batteries with storage orchestration offers additional grid security benefits for the energy grid, bringing bills down further.”

Jacqui Mumford, CEO of the Nature Conservation Council of NSW welcomed the signs government is drawing the link between cost of living and climate crises, but said the state’s policies so far had a glaring gap.

“One thing missing from this announcement is a plan to phase out new gas connections, as we’ve seen in Victoria,” Mumford said on Monday.

“This simple measure would cost the government nothing, reduce the risk of asthma for kids, cut emissions, and save renters and people living in social and public housing hundreds of dollars a year in electricity bills.”

Still, Rewiring Australia executive director Dan Cass says providing grants to electrify social housing properties is a good start.

“Household electrification is the fastest, most cost effective way to reduce emissions – and it also decreases the cost of living by significantly reducing energy bills,” Cass said on Monday.

“As the climate emergency and cost of living crisis worsen, governments will need to invest big in electrification policies like this, to slash bills and emissions at the same time.”