The Clean Energy Finance Corporation (CEFC) has announced a $50 million investment in Bank Australia to support energy performance upgrades in existing homes, accelerating the rollout of the Household Energy Upgrades Fund (HEUF).
The funding aims to generate up to $100 million in green lending, including through Bank Australia’s Clean Energy Home Loan.
According to CEFC, this flagship loan offers a reduced variable rate of 5.38 per cent for the first five years, enabling significant savings for homeowners.
For instance, a $500,000 loan could save borrowers $254 in monthly repayments, equating to $24,500 in interest savings over a 30-year loan term.
The CEFC’s investment brings total commitments through the HEUF to $270 million.
CEFC CEO Ian Learmonth highlighted the initiative’s potential to scale up sustainable home upgrades.
“This commitment via the HEUF is a great opportunity to reach more Bank Australia customers and support the electrification journeys of their existing homes,” Learmonth said.
Bank Australia Managing Director Damien Walsh emphasised the role of green loans in helping customers decarbonise their homes.
“As a customer-owned bank we know our customers care about climate action so we’ve set a net zero emissions by 2035 target. Supporting our customers to buy, build or renovate energy efficient homes will play a big role to meet our goal,” Walsh said.
“Increasing the uptake of renewable energy, storage and related infrastructure is critical to Australia’s net zero ambitions and clean energy transition. The installation of more rooftop solar, home batteries and energy efficiency equipment will help unlock additional clean energy capacity. This means we can better manage energy demand and ultimately contribute to the creation of a stronger, more reliable and cleaner grid.”
The Clean Energy Home Loans incentivise customers to purchase or upgrade to sustainable homes, offering pathways for renovating existing properties or buying all-electric, newly built homes.
Additionally, Bank Australia is providing free access to the BOOM! Power Electrify Your Home tool, which generates energy assessment reports and connects homeowners with suppliers for electrification upgrades.
Australia’s 11 million existing homes account for over 10 percent of the nation’s emissions and 25 percent of electricity consumption.
The CEFC’s HEUF initiative aims to address this by fast-tracking energy improvements through discounted consumer finance, backed by a $1 billion Australian Government allocation.
The HEUF initiative continues to attract strong interest, with the CEFC receiving proposals worth over $850 million for green loans. Further commitments are expected in 2025 as the program expands its reach, driving Australia’s transition to cleaner, more sustainable housing.
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