The proposal comprises 3 components, all commencing on 1 July 2025:

Component 1: Reducing Power Bills for Social and Community Housing
The policy would expand and extend the existing Social Housing Energy Performance Initiative (SHEPI). 

From the policy start date, this component would increase the size of the Commonwealth’s annual commitment to $200 million per year (exclusive of any departmental funding) and extend the commitment to end 5 years after the policy start date (i.e. at the end of 2029-30). 

Component 2: Reducing Power Bills for Renters
For 5 years from the policy start date (i.e. to the end of 2029-30), the policy would allow owners of residential investment properties to claim depreciation for the full cost of eligible home energy upgrades in the year of installation, up to $25,000 (subject to annual indexation in-line with CPI) over the course of the scheme. Eligible home energy upgrades are:
•    Thermal envelope improvement works, specifically:
     –    Roller shutters and/or heavy drapes for windows; 
     –    Double glazing;
     –    Floor and/or ceiling insulation; and
     –    Air tightness upgrades to reduce infiltration 
•    Space conditioning heat pumps where they replace gas heating systems;
•    Heat-pump water heaters that replace gas water heaters;
•    Induction cooktops that replace gas cooktops;
•    Rooftop solar photovoltaic (PV) systems with a max capacity of 20kW; and
•    Home battery systems with a max capacity of 40kWh.

Component 3: Reducing Power Bills for Homeowners 
For 5 years from the policy start date (i.e. to the end of 2029-30), 10-year zero interest loans would be available to owner-occupiers of residential properties for the installed cost of eligible home energy upgrades. Eligible home energy upgrades are as follows:

•    Thermal envelope improvement works, specifically:
     –    Roller shutters and/or heavy drapes for windows; 
     –    Double glazing;
     –    Floor and/or ceiling insulation; and
     –    Air tightness upgrades to reduce infiltration 
•    Space conditioning heat pumps where they replace gas heating systems.
•    Heat-pump water heaters that replace gas water heaters;
•    Induction cooktops that replace gas cooktops; and
•    Home battery systems with a max capacity of 40kWh.

Each household may borrow a maximum of $25,000 (subject to annual indexation in-line with CPI) over the life of the proposed policy, for one or many upgrades. Administration and delivery of the loans would follow a similar model as the ACT Sustainable Household Scheme, with funds made available by the Commonwealth Government for delivery to end-users by private sector providers.