Discounted loans for electric vehicles (EVs) will help Australians ditch petrol cars sooner, but Rewiring Australia says the government must go further if low-income households and pensioners are to share in the savings from lower power bills.
The Federal Government has announced $60 million in discounted EV loans through its Clean Energy Finance Corporation, aimed at reducing upfront costs for popular EV models and accelerating the shift away from petrol-powered transport.
Rewiring Australia has welcomed the move as good news for Australians in the market for a new car, but says money could still be better spent investing in policies which benefit everyone.
“These discounts are about helping Australians switch to cars that are cheaper to run, better to drive, powered by Australian-made energy, and ultimately better for planet Earth,” Rewiring Australia CEO Francis Vierboom said.
“Every new petrol car sold today is effectively a 20-year subscription to imported fossil fuels, locking households into higher costs for decades.
“Transport is on track to become Australia’s biggest source of carbon pollution and the solution is a relatively straightforward one in that we just need to make EVs the more favourable option to consumers, which this announcement helps do.
“But we still need to do more for lower-income homes. These kinds of loans work well for upper-middle income folks who can easily make regular repayments but leave behind Australians who need help the most.”
Mr Vierboom said without affordable finance to upgrade to fully electric, energy-efficient homes, most Australians will continue to miss out on the full savings of the clean energy transition.
“Rewiring Australia’s proposed Electrify Everything Loan Scheme (EELS) has been designed for Australians irrespective of income and would offer government finance secured on the property which doesn’t need to be repaid until the upgraded house is sold,” Mr Vierboom said.
“This would remove the up-front cost barrier to electrification for all homes, regardless of the owner’s income, and arm them with cash up-front to install solar, batteries, smart EV charging, water heating, induction cooking, split system air-con, and other efficiency upgrades.
“We know that once a home is fully electric with solar and a battery, households can save more than $4,000 per year if they also have an EV - a significant win for families during a cost-of-living crisis, and for our climate.
“If the government is serious about climate targets and household budgets, it needs to move beyond conventional loan models and invest in solutions that can be accessed by homes under the most pressure.”
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