When Tasmania (TAS) launched its Energy Saver Loan Scheme in late 2022, it was intended to be a three-year program that would provide households, landlords, small businesses, and community groups with an affordable way to upgrade to cleaner, more efficient technology. The design was simple: interest-free loans of up to $10,000 that could be used for solar panels, batteries, electric vehicle chargers, heat pump hot water systems or other energy-saving appliances. Within weeks, applications were flowing in steadily. Within months, uptake was strong enough to prompt the state government to increase the budget. By September 2025, the funds had been completely exhausted, closing the scheme a full year earlier than expected.
The early finish was not the result of poor design or lack of interest. It was the opposite. More than 7,500 upgrades went through the scheme, showing that Tasmanians were eager to invest in cleaner energy as soon as the financial barrier was lowered. It highlights a critical point for the rest of Australia: the appetite for solar and storage is not in question. When people are given a practical path to manage upfront costs, they move quickly. The Tasmanian experience underlines that the real challenge lies in designing programs that match the scale of demand rather than assuming demand needs to be created.
The appetite is there: Proof from Tasmania
What stands out about Tasmania’s scheme is not just how quickly the funds disappeared, but the kind of upgrades people chose. Solar panels and batteries were obvious winners, yet many households also used the loans for heat pump hot water systems and energy-efficient appliances. That mix suggests Aussies aren’t only chasing bill savings through generation but are also looking to cut demand and electrify everyday living. It’s a sign that interest has matured beyond the early “solar only” stage.
Equally important was who applied. Landlords upgrading rentals and non-profits reducing operating costs point to a broad base of participation that goes beyond middle-class homeowners. The scheme unlocked investment from groups that rarely get a look-in when energy programs are rolled out. That breadth of demand is the real lesson: once upfront costs are handled, the clean-energy market in Australia reaches far further than many policymakers expect.
Cost is the real barrier, not interest
The Tasmanian scheme worked because it removed the one obstacle that consistently slows down clean energy adoption: upfront cost. For many households and small businesses, the economics of solar and storage are sound, with payback periods of seven to nine years in Hobart. Yet those returns only matter if you can afford the initial outlay. By covering sums of up to $10,000 with no interest attached, the program bridged the gap and made investment possible for people who might otherwise have waited years.
The popularity of the loans makes clear that hesitation is not about whether solar or batteries make sense. Aussies already recognise the savings potential and the security of producing their own power. What stops action is the size of the cheque that needs to be written on day one. Once that hurdle was removed, uptake surged. The lesson here is straightforward: policy does not need to convince people of the value of clean energy, it needs to give them a financial mechanism that makes the decision affordable today.
The lesson for other states
Tasmania’s experience shows that when finance is accessible, uptake follows. That lesson should resonate across the mainland, where households face similar hurdles in covering upfront costs. National rebates help reduce the price of solar and batteries, but without the added support of easy finance, many families and small businesses remain locked out. States such as Queensland (QLD), New South Wales (NSW), and Western Australia (WA) could replicate Tasmania’s model to unlock far greater participation.
The risk is that policymakers assume the main challenge is sparking interest, when in reality the interest is already there. Aussies are increasingly motivated by rising power bills, the need for energy security during extreme weather, and a desire to reduce emissions. Those drivers are strong enough to guarantee demand. What is missing is a financing framework that recognises demand as the constant and cost as the variable that needs to be managed. By ignoring that reality, states risk leaving a large segment of willing households on the sidelines.
The risk of stopping too soon
The abrupt end of Tasmania’s scheme also highlights the dangers of success without follow-through. Cutting off support once demand is proven leaves households who delayed or only recently became aware of the program at a disadvantage. Early adopters reap the rewards, while those who need more time to organise finances or gather information are left behind. That divide reinforces inequality, especially for low-income families who are least able to manage upfront costs and most likely to benefit from lower energy bills.
The ripple effects extend beyond households. Installers and small businesses that scaled up to meet demand face uncertainty when programs end suddenly. Momentum built around training, employment, and supply chains can stall overnight. A stop-start approach to policy undermines trust in future initiatives, making people hesitant to engage the next time a scheme is announced. If0 the aim is to accelerate the transition to cleaner energy, cutting off funding early risks doing the opposite by creating frustration and scepticism among the very people the policies are meant to encourage.
What’s still on the table
While TAS’ loan program has closed, there are still national measures that reduce the cost of clean energy upgrades. The federal solar rebate continues to provide a substantial discount on new systems, lowering the price of installation across every state and territory. The Cheaper Batteries Program also offers households around a 30 per cent reduction on approved storage units, helping to narrow the gap between solar alone and combined solar-battery systems.
Feed-in tariffs (FiTs) remain another piece of the picture, though they vary by state. In TAS, the minimum rate is set a 8.782 cents per kilowatt-hour for 2025-26, ensuring households receive some return for exporting excess solar to the grid. Although less generous than in the past, these tariffs still contribute to payback periods and strengthen the case for rooftop systems. For those weighing up their options, even without state-level loan programs, support still exists, and the economics of solar in particular remain strong. Acting sooner rather than later is wise, as rebate levels are designed to step down over time.
A roadmap for better policy
Tasmania’s experience provides a clear signal to governments across the country that success should not be treated as a finish line. When a program proves popular, the logical step is to expand it, not close it early. That requires long-term planning, predictable funding, and the flexibility to scale when demand outstrips expectations. The goal should be continuity rather than the stop-start cycle that has too often defined clean energy policy in the nation.
There is also room for broader thinking about who delivers support. If governments set the framework, private lenders and energy companies can play a role in extending affordable finance options to households and businesses. Partnerships of that kind could keep momentum going even when public budgets are tight. Above all, programs should be designed on the assumption that Aussies already want solar, batteries, and efficiency upgrades. The task is not to spark interest but to create stable mechanisms that let people act on it.
Tasmania’s scheme showed that Australians are ready to invest in cleaner, cheaper energy when the upfront cost barrier is removed. The lesson for the rest of the nation is simple: demand already exists. What matters now is building policies that keep pace with it.
Energy Matters has been in the solar industry since 2005 and has helped over 40,000 Australian households in their journey to energy independence.
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