Another green home loan scheme is in the works. The Clean Energy Finance Corporation has just recently signed a memorandum of understanding, this time with the ING bank, to offer $150 million in a green upgrade loan program for mortgage holders. The funding will allow home buyers to borrow up to $50,000 to install clean technologies to improve energy efficiency, reduce energy use and cut scope 3 emissions. Customers are offered a 2 per cent discount on their fixed-rate home loan at the bank for the first five years of the loan.
They can access the loans at 3.74 per cent, a $5000.
The MOU stipulates that the CEFC will consider investing up to $75 million in the program. The investment will be the third of its kind as part of the CEFC’s household energy upgrades fund program (HEUF).
Eligible technology includes battery ready solar photovoltaic, battery and inverters. Borrowers can also access resources from BOOM! Power, which can recommend clean energy technology upgrades appropriate to a household’s existing systems and appliances.
CEFC chief executive Ian Learmonth said that lowering the household carbon footprint is critical to net zero emission targets.
“Our work crowding in additional private capital through the HEUF will help deliver a catalytic outcome, providing low-cost financing together with a range of co-financiers for home upgrades that improve energy performance.
“Australia’s existing 11 million homes are responsible for more than 10 per cent of total emissions and more than 25 per cent of electricity consumption.”
ING CEO Melanie Evans said: “If we want to accelerate decarbonisation, we need to remove the complexities and barriers that are stopping people from making their homes more energy efficient. We have created an experience that is stress-free and customer focused.”
More on CEFC green loans
The CEFC created the HEUF with support from the Australian government, which allocated $1 billion to fast track sustainability improvements in existing housing through discounted consumer finance options. This is on top of the $30.5 billion allocated to the body by the federal government.
Proposed plans for the fund include green mortgages, green personal loans, and other green financial products to improve home energy performance for homeowners, renters, and strata.
According to its 2024 annual report, these includes:
- $9.5 billion in general portfolio
- $19 billion in rewiring the nation fund
- $1 billion in HEUF
- $500 million in powering Australia technology fund
- $300 million in advancing hydrogen fund
- $200 million in clean energy innovation fund
But this funding source for energy efficiency and sustainability is just one option on offer.
Following is a list of other green financing options on the market.
The agency is expected to announce further commitments in 2025.
But these loans are ONLY available to EXISTING home loan customers of ING (and Westpac has a similar offering), so the rest of the people looking to invest in solar battery to reduce their electricity costs have to pound rocks!? Especially in SA, we have the highest bills (in literally still pay $1200 a quarter when I use 2,358Kw but sell 2,748Kw (eg send back to the grid more than I use)!!! Plus, we lose power and have no back up… Why no battery subsidy??? Because we are privatised, and someone loses a heap of $$