The Australian Government has unveiled a significant initiative to help homeowners reduce their energy costs and improve energy efficiency.
Federal Minister for Climate Change and Energy, Chris Bowen, and Assistant Minister Josh Wilson announced a $160 million commitment to support Westpac’s Sustainable Upgrades Home Loan program through the Clean Energy Finance Corporation (CEFC).
This investment is part of the government’s broader $1 billion Household Energy Upgrades Fund (HEUF), which aims to assist over 110,000 Australian households in lowering their energy bills by providing access to lower-cost loans for energy-efficient upgrades.
The Westpac Sustainable Upgrades home and investor loans will be available to eligible home loan customers seeking to enhance their homes’ energy efficiency. The program covers a range of improvements, including the installation of solar panels, batteries, hot water heat pumps, electric vehicle chargers, double-glazed windows, and insulation.
Minister for Climate Change and Energy Chris Bowen said the $160 million commitment would unlock savings for households.
“This innovative collaboration will give Australians more opportunities to benefit from the energy transition and ease cost-of-living pressures,” Bowen said.
The government estimates that on a loan balance of $30,000, eligible customers could save approximately $3,475 in interest over a 10-year period compared to Westpac’s basic variable rate home loan.
This initiative represents a significant step in the Albanese Government’s efforts to address climate change and reduce living costs for Australian households. By partnering with one of Australia’s leading banks, the government aims to make green loans more accessible and affordable for homeowners across the country.
Assistant Minister for Climate Change and Energy Josh Wilson said making homes and businesses more energy efficient is one important way we can ease the cost of living, take pressure off Australians and reduce emissions.
“This investment will help people with older homes and appliances that don’t meet modern energy standards to upgrade and keep money from leaking out the door,” he said.
The first commitment from the HEUF in May this year committed $60 million through lender Plenti to support cheaper finance for energy efficiency upgrades.
The Westpac loans will launch with the competitive variable interest rate of 4.49 per cent.
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