Quick answer
A home electrification loan funds the move from gas and other fuels to electric appliances such as heat pump hot water, reverse-cycle heating and induction cooking, often alongside solar and a battery. Ownright Custom Finance arranges these loans Australia-wide, using personal loans, home-equity structures or other secured options depending on the size of the project.
Key points
- Covers appliances, wiring upgrades and solar or battery add-ons
- Small jobs may suit a personal loan, bigger ones a secured structure
- Quotes from licensed trades are normally needed
- Rebates and incentives vary by state and change often
- Suits
- Owner-occupiers and landlords upgrading older homes
- Security
- Unsecured for small jobs, property for larger ones
- Typical items
- Hot water, heating and cooling, cooktops, switchboard upgrades
- Australia-wide
- Yes
What is home electrification?
Home electrification means running your house on electricity instead of a mix of gas, LPG or wood. The usual targets are hot water, heating, cooking and, increasingly, the family car. Done well, it replaces several energy bills with one, and it pairs neatly with rooftop solar so the home makes much of what it uses.
The sticking point is rarely the idea. It is the upfront cost. A heat pump hot water system, a reverse-cycle unit, an induction cooktop and the electrical work to support them add up quickly, which is where finance comes in.
What can a home electrification loan pay for?
- Heat pump or electric hot water systems
- Reverse-cycle air conditioning used for heating and cooling
- Induction or electric cooktops and ovens
- Switchboard upgrades, extra circuits and three-phase connections
- Disconnection of gas or LPG services
- Rooftop solar and a home battery to power the new loads
- A wall charger for an electric vehicle
Quotes should list each item. Lenders are more comfortable funding identifiable goods and licensed labour than a vague project total.
Who is electrification finance for?
| Situation | What it often looks like |
|---|---|
| Owner-occupier with an ageing gas setup | Replacing a hot water system that has failed, plus heating |
| Landlord improving a rental | Upgrading appliances to attract tenants and reduce repairs |
| New build or knockdown rebuild | Designing the home all-electric from the start; see knock down rebuild loans |
| Household adding solar and a battery | Financing the whole system as one project |
| Family planning an electric vehicle | Bundling charger and wiring with other upgrades |
Personal loan or secured loan?
Smaller electrification jobs often suit a personal loan: quick, no property valuation, and a short list of documents. Larger or staged projects can justify a loan secured against the home. The trade-off is more steps, such as valuation and title checks, in exchange for a different borrowing structure. Our guide on secured versus unsecured personal loans sets this out plainly, and our personal loans page shows where each fits.
If the electrification is part of a bigger renovation, the finance might sit better inside a renovation loan or a home loan top up.
What do lenders look at?
Your income and spending. Lenders assess whether the new repayment fits alongside your existing commitments. Our guide to loan serviceability explains how that works.
Your credit history. A clean file widens the options. A messy one narrows them but does not always close the door.
The project. A clear scope, licensed tradespeople and itemised quotes make approval easier.
Security, if any. For larger amounts, the property may be taken as security, which involves checking title and sometimes value.
Are there government programs that help?
Governments at federal, state and territory level have run rebates, discounted loans and installation schemes for efficient appliances, solar and batteries. They have conditions covering the product, the installer and sometimes the household, and they are updated regularly. Rather than put a number on a page that might be wrong next month, we suggest checking your state energy department and the Australian Government’s energy site, then bringing the real quote to us so the finance matches the true cost after any incentive.
How does Ownright arrange it?
Trevor Scott and the team start with the project, not a product. Do you want hot water and heating done this year and the solar next, or all in one go? Is this your forever home or something you will sell in three years? The answers decide whether a simple personal loan, a top up, a second mortgage or a staged plan is the sensible way through.
We also keep an eye out for solutions that other brokers do not tend to mention. If your income is irregular, you are self-employed or a lender has already declined, there may still be a path. Ownright works with households in every state and territory, so a Tasmanian heat pump and a Queensland solar array get the same attention.
You can also start a no-obligation enquiry now and we will come back with options.
An illustration
Illustrative scenario only. A couple in an older brick home want to retire the gas hot water, install reverse-cycle heating and put solar on the roof. The switchboard needs upgrading first. A broker might combine the appliance and electrical quotes into one itemised project, compare an unsecured option with a small top up, and sequence the solar to follow the appliance changes.
Mistakes to avoid
- Starting work before the finance and any incentive paperwork are settled
- Using an unlicensed installer, which can void rebates, warranties and insurance
- Forgetting the switchboard and wiring in the budget
- Borrowing for the equipment but not the installation
- Choosing a term much longer than the life of the appliance
Documents to have ready
- Itemised quotes from licensed trades
- Photo ID and proof of address
- Payslips, or tax returns and BAS if self-employed
- A list of current loans and cards
- A recent rates notice if property security is involved
The guide on what documents you need for a loan and our get loan ready checklist will save you time.
Where does this fit in the wider green picture?
Electrification rarely stands alone. It links to energy efficient upgrade loans such as insulation and glazing, to solar panel loans, home battery loans and green home loans. The green finance hub pulls it all together.
Which order should the upgrades go in?
Sequencing can save money and stress. Many households start with whatever has failed or is about to, usually hot water, then move to heating and cooling, then cooking. Solar and a battery are often easiest to size once the new electric loads are known, because the installer can see what the system must feed. The switchboard is the quiet hero of the project: if it is old or full, it may need replacing before anything else is added.
Financing in stages is possible. A small personal loan might cover the urgent job, with a bigger facility arranged later for the remainder. That said, several small applications leave several enquiries on your credit file, so talk to us before you lodge anything.
What does the lender need from the installer?
Lenders are comfortable with quotes that name the products, the model numbers and the licensed electrician or plumber doing the work. For solar and batteries they may also want accreditation details. If a rebate or incentive is involved, the installer usually handles that paperwork, and the quote should show the amount you actually pay. When the finance has to reach the supplier before the job starts, tell us the payment terms so the timing lines up.
How does a loan affect my home’s running costs?
A repayment replaces some of what used to go on energy bills, but it does not erase them. The honest comparison is the new repayment plus the new electricity use against the old gas and power costs over the same period. Because tariffs, usage and weather differ, we do not promise savings. What we can do is size the loan so the repayment sits comfortably in your budget even if the savings arrive more slowly than hoped.
Ready to go all-electric?
Sounds like you’re weighing up finance to electrify your home. We’re the lending experts in home energy upgrades, so click through and see if you qualify, or call us on 03 7043 7233.
How it works, step by step
- 1
Step 1
Gather one or more quotes that list each item, including any switchboard or wiring work.
- 2
Step 2
We size the borrowing and decide whether an unsecured loan or a property-secured option is the better fit.
- 3
Step 3
We approach lenders comfortable with home improvement and energy projects.
- 4
Step 4
Funds are released to you or the supplier and the work gets underway.
Frequently asked questions
What counts as home electrification?
Generally it means replacing gas or fuel-burning appliances with electric ones: heat pump hot water, reverse-cycle air conditioning for heating, induction cooktops and sometimes an electric vehicle charger. Many households add solar and a battery so the new load runs on their own power. Wiring or switchboard upgrades are often part of the job.
Can I borrow for the electrical work as well as the appliances?
Usually yes, provided the work is itemised on a licensed tradesperson's quote. Switchboard upgrades, new circuits and gas disconnection are common line items. Some lenders prefer a single invoice from one contractor, others accept several. Tell us who is doing what and we will line up the paperwork.
Should I use a personal loan or my home's equity?
It depends on size, timing and your goals. Smaller projects often suit a personal loan because it is quick and does not involve the property. Larger projects might be cheaper to carry as a secured loan, but they bring valuation and security steps. We walk through both and explain the trade-offs.
Are there rebates for switching from gas to electric?
State and territory governments and some retailers run programs that change often, and they usually have eligibility rules about the appliance, the installer and the household. We do not quote amounts. Check the current state program and ask your installer, then bring us the quote so the finance reflects the real cost.
Can landlords borrow to electrify a rental?
Yes, investors can finance upgrades to rental homes. Lenders look at the borrower's overall position, and the way a loan is structured can matter for tax, so it is worth speaking to your accountant. Ownright can arrange the finance side and explain the choices.
What if a bank has already said no?
A decline does not always mean the project cannot be funded. Other lenders treat income, credit history and security differently, and a different structure sometimes works where the first did not. Talk to us before applying anywhere else, because each application leaves a mark on your credit file.