Govt explains interest-free energy loans

Modern wood heaters will be among a range of special products eligible for purchase under a no-interest loan scheme introduced by the Tasmanian government.

The Liberal administration put aside $10 million in its 2016/17 budget for the Energy Efficiency Loan Scheme, which will be available for households and small businesses over terms of up to five years to purchase special-category products including reverse-cycle airconditioners, double-glazing and solar.

"Securing greater efficiency in the way we use our power can help drive down power bills over the longer term ... it's good for the environment," Energy Minister Matthew Groom told state parliament on Tuesday.