The Green Loans program will be phased out in the coming months and will transition to a new Green Start program.
The Green Loans program was a Government initiative to improve sustainability and reduce energy use within households. The program was established in 2008/09 financial year with an original budget of $300 million. The aim was to undertake 360,000 household assessments and provide 200,000 loan subsidies to households. The budget was later reduced to approximately $175 million to undertake 360,000 assessments and provide up to 75,000 loans.
The review of the ‘Green Loans’ identified a number of key failures. These can be summarized as lack of
control over the number of assessors, poor financial controls for the program which allowed regulatory breaches, poor management controls, faulty program design and inadequate procurement controls.
The new Green Start arrangements will benefit Australian households “ particularly low-income and disadvantaged Australians – by helping them to save energy and reduce energy bills. The new program will also give greater certainty to assessors about their future under the Green Loans program and will be delivered through transparent and robust administration.
Applications for funding under both of these rounds will open later this year. The Government will announce further details regarding delivery of the Green Start program in the coming weeks, following targeted consultation with stakeholders.
The changes are still being compiled and we will attach a link to them below in the discussion when we find out.
Written by Prateek Chourdia
MEngSc – Photovoltaics and Solar Energy, UNSW
Solar Energy Analyst
© 2010 Solar Choice Pty Ltd
Resolution Consulting: Review of the Green Loans Program