Australian Bank Westpac has partnered with the Clean Energy Finance Corporation (CEFC) to offer new home and investor loans to promote energy-efficient upgrades. Beginning August 26, these loans will feature a competitive variable interest rate of 4.49% per annum, facilitating the installation of technologies to enhance energy efficiency and climate resilience in homes.
This initiative marks the first deployment of funds under the CEFC’s $1 billion Household Energy Upgrades Fund (HEUF). It allows eligible Westpac customers to borrow up to $50,000 over a ten-year term, supporting the adoption of sustainable home improvements in response to increasing environmental awareness.
Jason Yetton, Westpac’s Chief Executive of Consumer Banking, expressed the bank’s commitment to supporting customers in making sustainable choices. “Westpac’s new offering, backed by the Australian Government-owned ‘green bank’, will appeal to our customers wanting to make their home more energy-efficient,” Yetton said, emphasising the role of such initiatives in achieving a net-zero future.
The programme is expected to significantly boost the adoption of renewable energy technologies among Australian homeowners. Westpac’s research indicates that 89% of Australians looking to renovate within the next five years are considering eco-friendly upgrades. Also, 38% Australians would consider installing solar panels on their home, one in four would consider putting in solar batteries or changing to solar hot water, and over a fifth would consider installing insulation (23%) or put in double-glazed windows (22%).
Ian Learmonth, CEO of the CEFC, highlighted the broader implications of the initiative. “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 manage household energy costs and 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.”
This loan introduction is a key part of broader efforts by financial institutions and government bodies to facilitate the transition to sustainable energy solutions within the residential sector.