ACT launches interest-free loans for electric cars to boost uptake

Drivers in the Australian Capital Territory can now apply for zero-interest loans designed to boost the uptake of electric vehicles, as industry groups call for similar programs to be adopted across the country.

Anyone who holds a valid ACT driving licence or owns a home in the territory can apply for 10-year zero-interest loans of up to $15,000. This in addition to other benefits such as a stamp duty exemption for new electric vehicle purchases.

Shane Rattenbury, the ACT minister for water, energy and emissions reduction, said the territory wanted to send a strong signal it was embracing the transition to electric cars, both domestically and to carmakers abroad.

The program is being organised in a staged process with a small number of electric vehicle suppliers participating initially. More will be added over time.

Dr Jake Whitehead, head of policy at the Electric Vehicle Council, welcomed the development, saying it could save drivers thousands of dollars in interest payments and improve access to electric cars.

Energy company AGL calculated the cost of running an electric vehicle and found it was $1,346 cheaper than running a petrol car, although this result can change depending on location and whether solar panels are used to charge.

Whitehead called for interest-free loans to be rolled out across Australia, but said additional policies must also be introduced as well to supercharge uptake.