The Clean Energy Finance Corporation, Australia’s Government-owned green bank, has received proposals for investment opportunities worth over $850 million in affordable green loans.
As a result, this confirms its first investment via the $1 billion Household Energy Upgrades Fund (HEUF), a program to help consumers access cheaper home energy solutions and affordable finance.
In its inaugural HEUF investment, the Clean Energy Finance Corporation (CEFC) will work with fintech lender Plenti to provide finance to drive down the cost of clean energy technologies for eligible customers, improving household sustainability and reducing emissions.
The $60 million CEFC commitment will support cheaper finance for solar PV, home batteries and other energy efficiency upgrades via discounts on Plenti green loans of up to 2.74 per cent annually.
Eligible customers can get a further 0.6 per cent discount if they sign up to a Virtual Power Plant through Plenti’s GreenConnect platform, taking the total discount up to 3.3 per cent.
Consumers can apply to Plenti for a green loan financed via the HEUF from 5 June 2024. The CEFC received proposals from major banks, mutual banks, non-banks and fintech innovators during a three-month Request for Proposal process covering green mortgages, loans and other green finance products.
CEFC CEO Ian Learmonth said the market enthusiasm to meet consumer demand for green loans will result in competitive financing products giving people more control over energy use.
“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,” he said.
Plenti CEO Daniel Foggo said consumers want lower energy bills and to reduce their household emissions but have been put off by the high upfront costs.
“Discounted finance will help households overcome these cost barriers, and help unlock faster uptake of energy efficiency equipment, reducing energy bills and accelerating Australia’s transition to net zero,” he said.
According to CEFC, the Plenti discounted HEUF green loan will be distributed through accredited and eligible equipment installers.
Consumers will be able to unlock discounted green loan rates, longer loan terms as well as access and sign-up for exclusive virtual power plant offerings via the Plenti GreenConnect platform.
CEFC said on a loan balance of $25000, eligible customers could save up to $3531 in interest over seven years, compared with the Plenti standard green loan rate.
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