Rush on ACT's interest-free solar loans from sustainable household scheme before eligibility tightened

Up to $14 million in loans was expected to be approved in the ACT government's sustainable household scheme in the past week, about eight times the usual weekly amount approved.

Between Monday and Thursday, there were 796 applications for solar systems up from 116 applications in the week before.

The scheme averaged 103 solar loan applications each week since it opened in July 2021.

The ACT government announced last Sunday it would tighten the eligibility rules for households seeking loans for rooftop solar to "free up capacity" in the scheme.

Only homeowners whose unimproved value is at or below $450,000 will be eligible for a loan to cover the cost of a solar installation, down from an unimproved value of up to $750,000 under the old rules.

Home owners with unimproved values of up to $750,000 remain eligible for loans for other products, including electric appliances and vehicles.

Chief Minister Andrew Barr on Monday said the government had decided to focus support for solar installations on low- and middle-income households.

"It's important at this point to acknowledge that the price for solar systems has come down and if you're sitting on land worth more than three quarters of a million dollars, you probably now don't need an interest-free loan from the government to put solar panels on your roof," Mr Barr said.

"What we want the loan to be there for is for households who don't have either significant equity in their mortgage or households who don't have $10,000 sitting around to invest in making the switch. That's the purpose of the scheme."

The ACT budget, released on Tuesday, included an extra $80 million for the sustainable household scheme, which had now had $80 million of investment and assisted more than 13,000 households.

Owners corporations will also be able to access up to $100,000 to install solar panels on apartment buildings under a joint ACT and Commonwealth government scheme.

The funding includes a rebate funded by the federal government from a $1.8 million commitment and an interest-free loan backed by the ACT government.

Solar system loans far outweighed applications for other products over four days this week.

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Twenty-three applications were made for loans to cover the cost of battery storage systems, 69 applications were made for reverse cycle heating and cooling systems, and four applications were made for new electric vehicles.

The government in February confirmed Brighte, which administers the loans for the scheme, would continue to do so for another two years following a tender process.

Brighte chief executive Katherine McConnell said at the time: "This scheme serves as a best practice model for other jurisdictions who are seeking a low-risk way to combine progressive public policy with proven operational execution."

Ceiling insulation was added to the scheme in March, ahead of changes to minimum rental property standards that will require properties to be insulated.

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