CEFC partners with ING for $150M Green Upgrade Loan program
The Clean Energy Finance Corporation (CEFC) has entered into an agreement with ING Australia to introduce a new low-rate green loan product aimed at funding energy-efficient home upgrades. This collaboration involves a memorandum of understanding signed this week, paving the way for the CEFC to potentially invest up to $75 million in the ING Green Upgrade Loan program, which totals $150 million. This initiative marks the third investment from the CEFC’s Household Energy Upgrades Fund (HEUF) and is set to offer a fixed rate of 3.74 per cent. This rate represents a 2 per cent discount compared to an ING Fixed Rate Home Loan for the initial five years of the loan term.
Customers opting for an ING Green Upgrade Loan could save up to $5000 over the first five years on a $50,000 loan balance. The loan is designed to assist eligible ING mortgage customers in accessing up to $50,000 for the installation of various clean energy technologies. These technologies aim to enhance energy efficiency, reduce energy consumption, and lower emissions, including options such as battery-ready solar PV, batteries, and inverters.
Streamlining the Retrofitting Process
ING CEO, Melanie Evans, highlighted the customer-centric approach behind the Green Upgrade Loan, which was developed based on feedback from customers and mortgage brokers. The loan aims to simplify the retrofitting process, acknowledging the complexities and time-consuming nature of such projects. Evans emphasised the importance of removing barriers that hinder individuals from enhancing the energy efficiency of their homes, especially in the context of accelerating decarbonisation efforts.
Commitment to Sustainable Housing
The CEFC, supported by a $1 billion allocation from the Australian government to expedite sustainability enhancements in existing housing, operates the HEUF to facilitate discounted consumer finance in collaboration with various co-financiers. While the CEFC has received proposals for green loan investments exceeding $850 million, it has thus far announced HEUF-backed investments totalling $220 million. Future commitments are anticipated to be disclosed in the coming year, with a focus on aiding households in reducing their carbon footprint to contribute towards achieving net zero emissions by 2050.
CEFC CEO, Ian Learmonth, underscored the significance of assisting households in lowering their carbon footprint as a pivotal step towards realising the net zero emissions target by 2050. The HEUF’s efforts to attract additional private capital aim to yield a transformative impact by offering cost-effective financing options in collaboration with diverse co-financiers for home upgrades that enhance energy efficiency.
