Green banks are an emerging global success story, cutting emissions at a profit, by stimulating innovation and private sector investment.
Our VSB will build on the momentum of clean energy. It will be able to invest in enterprises that provide households, companies, farmers, local government and non-profit organisations with solar electricity for less money than they’d pay for conventional electricity.
By removing the need to have capital upfront, the VSB can help bring solar PV, solar hot water, energy saving and other technologies to low-income households and social housing.
This will make sure Victorian households and businesses can cut the costs of energy and reduce their greenhouse emissions.
The number of households with solar has doubled in the last three years, creating a new group of Victorians who want to control their energy costs and expect the Government to help them to do so.
Energy companies are preventing Victorians from taking control of their energy bills. Solar consumers and businesses who have already connected solar to the grid aren’t saving as much as they should because the guaranteed energy buy-back rate is too low.
Low-income households, which may not have the money upfront or a strong credit rating, need support to enable them to cut their bills using solar.
HOW WILL IT WORK?
The VSB will provide funds in conjunction with private lenders.
This money will be loaned to companies so they can offer solar and other systems to end consumers: households, small and medium businesses, farmers, local government and non-profits.
These systems will be offered under new, innovative leasing or power purchase agreements.
The Victorian Government will appoint an independent board and CEO, with suitable finance and industry experience, to run the VSB.
This is not a grants scheme but a profitable investment bank. The VSB will not give handouts but will loan funds to banks and other institutions so that they have an incentive to create the best deals for end consumers.
Victorians will share in the benefits of new jobs, investment and confidence. Our environment will benefit from reduced greenhouse pollution and local pollution of the La Trobe Valley, where our dirty brown coal power industry is based.
The Greens package of policies will help hundreds of thousands of Victorians to go solar and ensure that households and businesses that have solar panels will get a fair price for the energy they export to the grid.
By taking pressure off the power grid, people with solar panels help keep everyone’s power bills down.
Solar is a profitable investment because it produces consumer electricity more cheaply than conventional power.