National capital expands low interest loans for EVs, adds electric cargo bikes

The Australian Capital Territory (ACT) government has expanded its Sustainable Homes Scheme to offer increased low interest loans for electric vehicles (EVs) and energy-efficient home appliances, while also introducing electric cargo bikes to the scheme for the first time. The loan amount has been raised from $15,000 to $20,000, with a fixed interest rate of 3 per cent, and the eligibility criteria for EVs now includes vehicles priced up to $60,000, narrowing from the previous cap linked to the luxury car tax threshold. This move aims to further encourage the adoption of EVs and sustainable transport options among ACT residents. The ACT leads Australia in EV uptake, with electric vehicles accounting for 36.5 per cent of new car registrations in May, significantly outpacing the national average of 20 per cent. The territory’s existing EV fleet represents 4.5 per cent of all vehicles, the highest proportion in the country. Alongside EVs, the loan scheme also supports the purchase of energy-saving home improvements such as electric cooktops, heat pumps, insulation, solar hot water systems, and home battery storage, reinforcing the government’s commitment to reducing carbon emissions and enhancing energy efficiency. Representatives from the ACT branch of the Australian Electric Vehicle Association (AEVA) have welcomed the expanded scheme, highlighting its role in helping the territory meet its ambitious net zero emissions target by 2045. The AEVA emphasised that the availability of low interest loans makes EVs more affordable, particularly for lower income households, by enabling buyers to offset loan repayments through savings on fuel costs. Dr Peter Campbell, AEVA spokesperson, also noted that electric cargo bikes could reduce the need for second cars by providing a practical alternative for transporting goods, pets, and children. The expansion of the Sustainable Homes Scheme reflects the ACT government’s broader strategy to transition to renewable energy and sustainable transport, supported by its fully renewable power grid. By making cleaner technologies financially accessible, the scheme aims to build resilience against fluctuating fuel prices and supply uncertainties. This initiative positions the ACT as a national leader in the shift towards electrification and sustainable living, setting a benchmark for other Australian jurisdictions to follow.