Household Energy Upgrades Fund

Location:

ACT

NSW

Qld

Tas

Vic

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About the program

Under the $1 billion Household Energy Upgrades Fund, the Clean Energy Finance Corporation (CEFC) will work with lenders to provide discounted finance products to help households upgrade their homes with solar PV systems, modern appliances and other improvements.

The Household Energy Upgrades Fund will help more than 110,000 households lower their energy bills, ensuring homes are warmer in winter and cooler in summer. It is also helping to fast-track the retrofit of greener, more sustainable homes Australia-wide.

How it works

Finance may be used for:

renovations
energy upgrades of one or multiple technologies at the same time
knock-down rebuild properties and energy-efficient appliances.

Household Energy Upgrades Fund finance products to help improve the energy performance of your home may include:

green home loans
green personal loans
other low-cost finance products.

Steps to upgrade your home under the Household Energy Upgrades Fund

Step 1. Decide on the type of upgrade you wish to make, such as a renovation or upgrading your hot water system.

Step 2. Speak to a participating lender about:

available funding options
your eligibility for the Household Energy Upgrades Fund
eligible upgrades/technologies
energy assessments.

Step 3. Once options in Step 2 have been finalised, contact an accredited installer.

Step 4. Ensure you have the correct documents and/or evidence with your lender to meet the requirements for your Household Energy Upgrades Fund upgrade.

Eligibility

Participating banks and finance institutions can be found on the Clean Energy Finance Corporation (CEFC) website. Speak to a participating lender for further advice on eligibility requirements.

Eligibility criteria

The Household Energy Upgrades Fund is open to households with or without a mortgage, rental property owners, and strata properties.
Upgrades are available for existing homes or knock-down/rebuild.
High value properties are excluded (speak to your lender for further details).
Products, installations and technologies must meet eligibility and evidence requirements.

Household Energy Upgrades Fund CEFC

Energy performance upgrades

To access discounted finance through a participating financier, energy upgrades must be eligible under the Household Energy Upgrades Fund. Please consult your lender for further eligibility advice, including specifications of eligible upgrade technologies.

Features of all eligible upgrades are shown below. Click on an icon to view more information about each technology.

Rechargeable batteries store 'excess' electricity generated from solar panels, boosting energy capacity and making power available when needed.

Batteries can be used:

at night
on cloudy days
when utility rates are more expensive
during blackouts (added back-up functionality required)

Although batteries are still reasonably expensive, government rebates and incentives may help offset the initial cost.

Solar PV systems capture sunlight and convert the sunlight to deliver electricity to homes. They consist of solar panels placed in arrays to capture the sunlight and an inverter to convert the sunlight to electricity.

The solar power can be:

consumed by the household, lowering energy bills and peak grid demand
sent to the electricity grid, with a payment to the householder
used to charge a home battery (if applicable).

The payback period for solar PV systems is between 4 and 8 years for most Australian homes (YourHome).

Energy monitoring systems provide useful insights into energy performance and support better management of energy use and costs.

They can:

accurately measure and provide a break-down of home energy usage
help households identify issues in their energy usage so they can be addressed
monitor energy usage in real time, thereby increasing monitoring effectiveness
help identify spikes and dips in home energy consumption and adjust if needed (such as take advantage of solar power).

Split system non-ducted air conditioners have an indoor unit that absorbs heat, and an outdoor unit that cools and pumps cold air into the indoor unit. Both heating and cooling capabilities are available in some systems.

Split system non-ducted air conditioners are:

typically less expensive to purchase and install than ducted systems
quiet to operate, making them suitable for bedrooms or studies
well suited to apartments or other small properties, and for single-room air-conditioning.

A house with clickable hotspots to display information about energy related products for consumers.

Benefits of energy performance upgrades

Residential buildings are responsible for around 24% of overall electricity use and more than 10% of total carbon emissions in Australia (DCCEEW, 2024).

If households know more information about their individual energy use and the thermal performance of their homes, informed choices can be made to make improvements.

Energy performance upgrades can:

lower energy bills
increase the comfort of your home
provide better health outcomes
provide greater awareness of home energy requirements and costs
reduce energy consumption and peak demand
reduce carbon footprint
contribute to energy security

Recent research by the Climateworks Centre found that:

Energy performance upgrades can deliver annual net savings from the first year of between $1,058 and $1,578.
States with higher space heating requirements, such as Victoria and Tasmania, have greater energy savings from the thermal upgrades due to increases in efficiency, requiring less energy to heat the home.
Improving a home’s thermal shell as well as electrification of appliances are essential for optimal outcomes.
There is more than one way to upgrade homes and cost-effective strategies vary depending on climate zones, choices of technology, and building archetypes.
At household level, the average energy bills savings generally offset the additional cost of energy upgrades over time.
Homes with greater energy performance have been shown to receive higher sale prices (based on a literature review by Climateworks Centre).
The literature also clearly shows that energy performance upgrades can help improve general health, including cardiovascular, respiratory and mental health.

Climateworks Centre - Climate ready homes, December 2023 (PDF 3.33 MB)

YourHome

Accrediting bodies

Installations of eligible upgrade technologies must be undertaken by accredited installers only. Please consult with your bank or financial institution on what evidence you need to show demonstrating that the technology upgrade has been installed.

Eligible technology and associated accrediting body

Product / Installation	Accrediting body
Solar photovoltaic (PV) modules	For products - Clean Energy Council For installers - Solar Accreditation Australia
Inverter	For products - Clean Energy Council For installers - Solar Accreditation Australia
Battery	For products - Clean Energy Council For installers - Solar Accreditation Australia
Solar hot water system	Clean Energy Regulator Essential Services Commission (NSW and Vic)
Hot water heat pump	Clean Energy Regulator Essential Services Commission (NSW and Vic)
Double glazed windows	Australian Glass & Window Association
Insulation	Energy Efficiency Council
Air conditioner	Australian Refrigeration Council
Ceiling fan	Any installation involving electrical work must be installed by an electrician with a current electrical license for the relevant state or territory.
Electric vehicle (EV) charger	Any installation involving electrical work must be installed by an electrician with a current electrical license for the relevant state or territory.
Energy monitoring system	Any installation involving electrical work must be installed by an electrician with a current electrical license for the relevant state or territory.
Pool pump	Any installation involving electrical work must be installed by an electrician with a current electrical license for the relevant state or territory.
Induction cooktop	Any installation involving electrical work must be installed by an electrician with a current electrical license for the relevant state or territory.

Assessments

For large and/or complex upgrades of existing homes, you may consider an energy assessor to provide ratings and customised upgrade advice.

Home energy assessments

A home energy assessment can help you understand the whole picture of a home’s energy use, level of comfort and safety. An assessment can help determine:

the energy use of a home
problem areas affecting the energy efficiency of a home
solutions to save energy and improve a home’s comfort level.

An energy-efficient home reduces energy waste and greenhouse gas emissions. It can also provide a healthier, more comfortable, cleaner living environment and offer savings through lower energy costs.

Home assessment reports

An energy assessment report provides guidance to help improve the energy performance of your home.

Currently, energy assessments are available for new homes under the Nationwide House Energy Rating Scheme (NatHERS), and for existing homes under the Residential Efficiency Scorecard program. Further information on these programs and how to find accredited energy assessors can be found at nathers.gov.au and homescorecard.gov.au.

Energy assessors

Energy assessors are home energy efficiency experts who assess the comfort and energy costs of a home and make tailored improvement recommendations. Assessors can work with households, landlords, builders and architects.

Accredited assessors can deliver assessments and create certificates to help you reach your energy saving goals and remain within budget.

Participating lenders

Working with the Clean Energy Finance Corporation, the following lenders are providing cheaper finance for households to upgrade their homes with solar PV systems, home batteries, insulation, modern appliances and other improvements:

As participating lenders grow, this will increase the options for loan products available under the Fund, enabling households to choose a fit for purpose product to support their upgrade journey and personal circumstances.

Contact support

Have a query about your Household Energy Upgrades Fund loan?

Please contact your lender. If you are not satisfied with the response, you can contact the Australian Financial Complaints Authority (AFCA) to register a formal complaint.

Have a query about your Household Energy Upgrades Fund energy upgrade product or installation?

Please contact the product manufacturer or installation company. You can also contact the relevant accrediting body.

Tried the above and would like to provide further feedback?

Please provide further details by using our contact form.

You can also contact the relevant state or territory consumer affairs organisation to register a formal complaint.