The Australian government, through its Clean Energy Finance Corporation (CEFC), has committed a further $160 million to support homeowners looking to make energy efficient upgrades to their home through a new loan offering from ‘Big Four’ banking giant Westpac.
Westpac announced its new Sustainable Upgrades home and investor loans on Sunday which has been tailored to provide home and investor loans for customers to make energy-efficient upgrades to their home.
Westpac home loan customers will be able to access a variable interest rate of 4.49 per cent per annum to install new features or technologies in their property that will improve energy efficiency or climate resilience.
It is open only to customers with an existing or approved eligible loan will be able to apply to borrow up to $50,000 with a loan term of up to ten years.
“We recognise more Australians want to play their part to reach a net zero future, and that starts at home,” said Jason Yetton, Westpac chief executive for consumer banking. “This announcement will help our customers to make more environmentally conscious choices and improve their homes at the same time.”
Westpac becomes the first bank to be supported by the CEFC’s $1 billion Household Energy Upgrades Fund (HEUF) which is aiming to provide help for more than 110,000 Australian households lower their energy bills.
Loans will be available for those looking to improve the energy efficiency of their homes through the installation of solar panels, batteries, hot water heat pumps, electric vehicle chargers, double-glazed windows, and air conditioners, to list just a few of the eligible upgrades.
Potential savings could amount to thousands of dollars: For example, on a loan of $30,000, eligible customers could save around $3,475 in interest over a period of 10 years compared with Westpac’s basic variable rate home loan.
Loans between $4,000 and $50,000 will be eligible on a 10-year maximum loan term, with one loan available per property. However, to qualify for the new Sustainable Upgrades loan, customers must have or be approved for a Westpac home or investment loan with a minimum loan size of $150,000.
“Increasing the uptake of renewable energy, storage, and related infrastructure is critical to Australia’s net zero ambitions and clean energy transition,” said Ian Learmonth, CEFC CEO.
“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.”
