Qualified seniors are getting rejected from energy loans by government—what's happening?

John Wootton thought the timing could not have been better when he heard about Western Australia's new solar battery rebate scheme.

He and his wife had been planning to add battery storage to their existing solar system, and now the government was offering generous rebates plus interest-free loans to make it happen.

Excitement quickly turned to frustration when the promise of support collided with unexpected obstacles.

The WA Battery Scheme and What It Offers

The WA Residential Battery Scheme appeared straightforward on paper: eligible households could reduce energy bills and store solar energy through rebates of up to $3,800 and optional interest-free loans of up to $10,000 for home battery systems.

For the Woottons of Warnbro, the scheme seemed tailor-made—they had a solid credit history, an unencumbered home, income from Australian and UK pensions plus superannuation, and John's casual employment at Murdoch University.

Despite ticking all the expected boxes, their application through Plenti—the Sydney-based administrator appointed by the WA Government—was rejected with no clear explanation.

Systemic Barriers for Seniors

The rejection illustrates a troubling trend across Australia’s financial services sector, where retirees with stable incomes and substantial assets increasingly encounter barriers when accessing credit, effectively treating them as second-class applicants despite their financial reliability.

Federal Age Discrimination Commissioner Robert Fitzgerald confirmed the problem stretches beyond solar batteries, noting that there are growing concerns by seniors that their financial needs, as they live longer, are not being properly considered by financial institutions.

He added that such discrimination can be 'possibly unlawful, depending on the circumstances'—a stark warning for a demographic controlling significant wealth yet facing systemic hurdles in accessing essential financial products.

How the WA Battery Scheme Works

Understanding the WA Battery Scheme clarifies what seniors stand to lose, with the government planning to expand support to up to 100,000 households, making it one of the country’s largest clean energy initiatives.

Rebates range from $1,300 for Synergy customers to $3,800 for Horizon Power customers, calculated per kilowatt-hour of battery capacity, and combined with federal incentives, can significantly reduce the upfront cost of home batteries.

Interest-free loans of up to $10,000 are also available for households with a combined annual income under $210,000, with repayment terms stretching to 10 years.

Virtual Power Plants: The Hidden Requirement

A critical requirement—participation in a Virtual Power Plant (VPP)—was not widely publicised, requiring eligible households to allow their batteries to be remotely coordinated during peak demand and sell stored energy back to the grid, with payments around $200 per year for a 15 kWh battery.

While this model benefits both participants and the state’s renewable energy goals, it assumes households can first access financing—a hurdle for many seniors.

When Good Credit Isn’t Enough

John Wootton’s rejection exemplifies a Catch-22 faced by retirees, as Plenti’s algorithm deemed his application unsuitable despite proof of unencumbered property and multiple income streams.

When he escalated the case, the company replied: 'Disclosing precise reasons for loan decisions may undermine the integrity of the scheme, as such information could potentially be used to circumvent the credit assessment process in future applications.'

A Broader Issue for Seniors

Margaret Walsh, national president of Australian Independent Retirees, said the issue extends beyond clean energy programs, with members reporting difficulties accessing credit from other utilities including phone, power, and gas providers.

Algorithmic lending has introduced new forms of discrimination, often penalising seniors with stable financial positions.

With more than 531,000 solar installations in WA, excluding seniors on the basis of automated credit decisions threatens both household participation and the government’s renewable energy targets.

Recourse and Solutions

Seniors seeking recourse have several options, including requesting written rejection reasons, escalating through internal dispute processes, checking credit reports, and gathering comprehensive financial documentation.

External support is available through the Australian Financial Complaints Authority, the Australian Human Rights Commission, financial counsellors, or local MPs.

Alternative financing options include vendor financing, personal loans from credit unions, solar-specific lending products, or peer-to-peer platforms.

Looking Forward

The WA Battery Scheme remains a forward-thinking policy with potential to deliver around 1 GWh of distributed storage if fully accessed, but good intentions falter when implementation barriers prevent eligible seniors from participating.

Requiring private contractors to provide clear rejection explanations and demonstrate fair credit criteria could help overcome these obstacles.

Have you or someone you know been denied a government-backed energy loan despite being financially qualified?