Rewiring Australia needs at least 100 billion dollars of Capital. Public Capital is the most efficient way to find this Capital. It can ensure every household in Australia can make their home and transport use renewable electricity while giving an excellent return to investors.
Private Capital are assets owned by households, and the whole population owns Government Capital.
Local organisations of consumers who pay for the products own Public Capital. Families buy the assets as they consume and pay for them and become custodians of the assets. They pay an ongoing maintenance cost when they have paid for the assets they use.
A Canberra Public Capital experiment has reduced yearly electricity charges by 30% while each year paying 10% towards the purchase of solar panels. Consumers make no upfront Capital Payment. Investors increase the value of their Public Capital by the 10% of Capital transferred to the consumer.
If an interest-free loan supplied the Public Capital to a Local Cooperative of which a low-income household was a member, the consumer would reduce their electricity costs by 30% while acquiring about 1/7th of the value of solar panels.
Public Capital with interest-free loans is an alternative to the rebates offered to assist low-income households. However, the ACT government does not need to provide incentives for Public Capital to fund the rewiring of Canberra. Many retired people and superannuation contributors are looking for higher return annuities than are currently on offer. The ACT government can accelerate the process by using the rebates to kick start Public Capital investment in local cooperatives.
Local cooperatives overcome a barrier to low-income households unfamiliar with investing and who do not wish to take the risk or effort involved.
Spreadsheet to show Public Capital in Canberra ACT.
