The Commonwealth Bank of Australia (CBA) has formed a new partnership with the Clean Energy Finance Corporation (CEFC) to offer loan discounts to residential customers to improve energy efficiency in new and renovated 7-star homes, including for technologies such as battery-ready solar panels, electrification and heat pump water systems.
Under the CBA’s Green Home Offer, CEFC is committing $125 million to help homeowners who build or renovate dwellings to the Green Star Home Standard – as set by the Green Building Council of Australia – that meet high-energy efficiency standards.
Under the Green Home Offer, which was initially introduced by CBA is 2022, borrowers are eligible for a discounted interest rate on entire home loans as opposed to just sustainable renovations.
“A discounted Green Home Offer is a powerful tool to drive down emissions, reduce energy use and create homes that are fit for the future,” says CEFC CEO Ian Learmonth.
“The CEFC has been one of the earliest backers of green home initiatives, with this latest investment bringing our total commitment to $350 million since 2020.”
The CEFC finance supports a discount of up to 0.18 per cent per annum on standard variable rates during a five-year period, equally split between the CEFC and CBA.
“It’s great to see the CEFC – the world’s biggest green bank – make smart partnerships to incentivise energy efficient homes,” says Minister for Climate Change and Energy Chris Bowen.
“Powering homes with battery-ready solar PV, as well as installing better insulation and windows, will help households cut power bills and emissions.”
CBA has also introduced green discounts for borrowers taking out personal loans to make sustainable purchases such as electric vehicles, solar panels and home batteries.
These discounts add to the new CBA Green Loan, a low secured fixed interest rate loan for borrowers to fund up to $20,000 in renewables to be repaid over 10 years.
“While we expect all residential homes to be built to these standards during the coming years as we move towards a net-zero future, our Green Home Offer encourages customers to take steps now to protect the environment and their home,” says CBA executive general manager for home buying Michael Baumann.
“It represents the bank’s commitment to rewarding new and existing customers taking actionable steps to reduce their environmental footprint.”