Canberra residents are set to benefit from an expanded Sustainable Household Scheme, with the ACT Government increasing its low-interest green loans from $15,000 to $20,000 this month. The move, announced on June 11, 2026, aims to accelerate the adoption of electric vehicles (EVs) and energy-efficient home upgrades, further cementing the ACT’s position as Australia’s leader in EV uptake.
Under the updated scheme, eligible households can now secure a 3% low-interest loan of up to $20,000 for a range of green initiatives, including the purchase of new or used EVs, installation of home charging infrastructure, and upgrades such as heat pump hot water systems, solar hot water, ceiling insulation, and home batteries.
“Helping Canberra households afford an electric cargo bike may avoid second car ownership, as a cargo bike can carry children or groceries and is much cheaper to run than a car.”
This expansion is a direct response to the growing demand for sustainable living solutions and aims to make these technologies more accessible to a broader range of residents. The ACT already boasts the highest EV uptake in Australia, with electric vehicles accounting for a remarkable 36.5 per cent of all new car registrations in May 2026.
Key Changes to the Sustainable Household Scheme
The most significant change is the increase in the maximum loan amount from $15,000 to $20,000. This additional capital provides a more substantial financial boost for households considering higher-value green investments, particularly for electric vehicles or comprehensive home energy overhauls. The interest rate remains at a competitive 3 per cent, repayable over up to 10 years.
Crucially for EV buyers, the price cap for eligible electric vehicles has been adjusted to $60,000. Previously, the scheme applied to any EV (excluding plug-in hybrids) below the Luxury Car Tax (LCT) threshold, which currently stands at $91,387 for fuel-efficient vehicles. This revised cap targets more affordable EV models, aligning the scheme with efforts to make electric transport accessible to more everyday Australians.
For the first time, the scheme has also expanded its eligibility to include electric cargo bikes, recognising their potential to reduce reliance on second family cars and lower household transport costs.
What This Means for ACT Residents
For those looking to transition from petrol to electric, the increased loan amount can significantly reduce the upfront financial barrier of purchasing an EV. With the cheapest new EVs now available from around $24,000, a $20,000 loan at 3% interest makes ownership a tangible reality for many more households.
Beyond vehicle purchases, the scheme continues to support essential home energy improvements. Residents can utilise the funds for:
| Upgrade Category | Examples |
|---|---|
| Electric Vehicles | New or used BEVs (under $60,000), electric cargo bikes |
| EV Charging | Home EV charging stations (e.g., wall boxes) |
| Hot Water Systems | Heat pump hot water systems, solar hot water systems |
| Heating & Cooling | Reverse cycle air conditioning |
| Insulation | Ceiling insulation |
| Energy Storage | Home battery systems |
This holistic approach encourages a comprehensive shift towards an electrified, energy-efficient lifestyle, directly addressing both transport and household energy consumption. For those considering an EV, pairing the purchase with a dedicated home charger is often the most convenient and cost-effective way to power their vehicle. You can explore options and costs in our guide: Best EV Home Chargers in Australia 2026: A Buyer’s Guide to Costs and Installation.
ACT’s Leading Role in EV Adoption
The ACT’s proactive stance on EV incentives has demonstrably impacted local adoption rates. The territory’s 36.5 per cent EV market share in May 2026 far outstrips the national average, which saw battery electric vehicles reach a record 20 per cent of all new vehicle sales in the same month.
This consistent leadership highlights the effectiveness of targeted government support in accelerating the transition to cleaner transport. While other states have scaled back or ended direct EV purchase rebates, the ACT continues to innovate its incentive programs to keep momentum strong. For instance, South Australia’s $3,000 EV subsidy closed in December 2024, and its 3-year registration exemption ended on June 30, 2025.
Beyond the Sustainable Household Scheme, the ACT also maintains other incentives, including emissions-based registration with ZEVs receiving the lowest rates, and exemptions from motor vehicle duty (stamp duty) for new and used ZEVs.
For homeowners looking to leverage these loans for broader energy savings, investing in solutions like heat pump hot water systems can lead to substantial reductions in electricity bills. Learn more about these savings here: Heat Pump Hot Water Australia 2026: Slash Bills by $900+ with Rebates.
The expansion of the Sustainable Household Scheme reinforces the ACT Government’s commitment to its net-zero by 2045 target and provides a clear pathway for residents to contribute to this goal while enjoying significant cost-of-living benefits.
Future Outlook
The ACT’s model serves as a benchmark for other Australian jurisdictions grappling with how to sustain EV uptake and drive household decarbonisation without relying on upfront cash rebates. By focusing on accessible financing for a broad range of green technologies, the scheme empowers consumers to make long-term investments that reduce both their environmental footprint and their ongoing energy expenses. As the national EV market continues its rapid growth, the lessons from the ACT’s sustained success will be increasingly valuable.
For those still weighing the benefits of an electric vehicle, understanding the financial incentives available, combined with long-term running cost savings, is crucial. Our comprehensive guide can help first-time buyers navigate the transition: From Petrol to Plug: The Ultimate First-Time Buyer’s Guide to Switching to an EV in Australia 2026.