$160m bid to fight power prices
The Albanese government has launched a $160m initiative to encourage homeowners to make energy efficient upgrades by offering cut-price green loans.
The government on Sunday announced it had committed the funding to Westpac’s Sustainable Upgrades Home Loan scheme.
It forms part of the government’s $1b Household Energy Upgrade Fund, which is aimed at helping households become more energy efficient in the face of the cost-of-living crisis.
The scheme will allow homeowners or investors to take out low-rate loans for green upgrades including installing solar panels, solar batteries, electric vehicle chargers, double-glazed windows and insulation.
Under the scheme, customers will be able to access loans with a 4.49 per cent variable interest rate.
According to the government, on a 10-year $30,000 loan, a customer could save $3475 in interest.
“This innovative collaboration will give Australians more opportunities to benefit from the energy transition and ease cost-of-living pressures,” Energy Minister Chris Bowen said.
“These competitive-rate loans will give customers the freedom to choose how to upgrade their homes and to make them more energy efficient and save on their bills.”
It will allow Westpac to fund up to $320m worth of loans.
Under the scheme, Westpac home and investor loan customers, who have existing or approved loans, will be able to borrow up to $50,000 to install sustainable features on their property.
“We know this is something Australians want from their bank,” Westpac’s consumer chief Jason Yetton said.
“Our research shows that of the two thirds of Australians looking to renovate their home within the next five years, nine in ten would consider making a sustainable upgrade to their home.”
In May this year, the government committed $60m via lender Plenti to offer cheaper finance for green upgrades, as part of the Household Energy Upgrade Fund.
