The Clean Energy Finance Corporation is committing an additional $180 million to the NAB Energy Efficient Bonus program, following its success in helping Australian businesses transform their energy use.
The CEFC has now committed $300 million to the program, which was launched in 2015 with an initial $120 million commitment from the CEFC.
The Energy Efficient Bonus program provides customers with a 0.7% discount on NAB’s standard equipment finance rate for loans for eligible clean energy investments, such as vehicles, energy efficient irrigation systems, solar PV, building upgrades, lighting upgrades, processing line improvements and refrigeration.
CEFC head of portfolio management Paul Greenop said the program had already provided finance for more than 1,000 clean energy assets across Australia.
“We are pleased to provide further finance for this highly successful program, which is making it easier for businesses to tap into the benefits of energy efficient, renewable energy and low emissions technologies,” Greenop said.
“Accelerating the uptake of these technologies helps businesses across the country reduce their grid energy costs as well as lower their carbon emissions. At the same time, investments in new clean energy technologies can boost productivity through more efficient operating practices.”
The program has been particularly well received by NAB’s agribusiness customers.
NAB Agribusiness general manager Khan Horne welcomed the second round of CEFC financing.
“After surveying 5,000 of our farmers for two consecutive years, 85% told us they saw energy costs as a significant business risk. So, we’re helping our customers transition to more sustainable business models and, particularly for intensive agriculture, significantly reducing their energy and water bills,” Horne said.
Some examples of loans leading to savings include:
GV Storage, Goulburn Valley, Victoria
GV Storage is a vertically integrated business in the heart of Victoria’s Goulburn Valley. The second-generation farmers grow apples and pears, currently processing around 66,000 bins of fruit annually, requiring high energy consumption. The business has installed a 506kw rooftop solar system.
The installed solar is generating enough power to meet more than 65% of the business’s energy needs, which are significant due to the large amount of power required for packing, storage and delivery.
The project is eligible to receive Large-Scale Generation Certificate (LGC) credits for its energy generation.
Parilla Premium Potatoes, South Australia
One of South Australia’s leading potato, onion and carrot growers, Parilla Premium Potatoes produces more than 55,000 tonnes of fresh vegetables a year for local and international markets. The family-owned business upgraded crop irrigators with energy efficient variable rate centre pivots, improving the efficiency of irrigation through increased control over watering.
Has reduced energy use by around 15% and reduced water and fertiliser consumption by around 20%.
Through the NAB Energy Efficient Bonus program, customers looking to purchase and install new equipment can go to their regular relationship manager and discuss the potential to finance more energy efficient alternatives or renewable technologies. Discounted loans are available for up to 10 years for amounts between $10,000 and $5 million.