AGL partners with Plenti to offer interest-free loans for solar and batteries

AGL Energy says will offer its customers interest-free loans to fund the installation of solar and storage systems, announcing a partnership with personal loan provider Plenti.

AGL says the offer could help break down the barrier that high upfront costs can pose to some wanting to own their own solar and storage systems.

“We understand that the initial cost of renewable products for the home can be a significant investment, but this partnership provides customers with more options as in the long run many consumers who invest in renewable products return savings through reduced household energy bills,” AGL’s chief customer officer, Christine Corbett said.

Starting in February, Plenti will begin offering eligible AGL customers loans of up to $30,000, for a term of five years, which can be used towards the installation of solar and home batteries.

Plenti is a provider of personal loans – formally known as RateSetter – and has sought to position itself as a leading lender for those looking to finance the purchase of rooftop solar, battery storage and also electric vehicles.

It received seed investment from the Clean Energy Finance Corporation to establish its ‘Green Loan Marketplace’, and later expanded the offer to South Australian households through the state’s Home Battery Scheme, and was selected as the loan provider for the NSW government’s Empowering Homes program.

In a quarterly update to shareholders, also released on Thursday, Plenti said it achieved 135 per cent year-on-year growth for the value of its loans provided to customers, which included an expansion of the company’s products into loans for electric vehicle purchases.

Also on Thursday, Westpac announced that it had provided Plenti with a $250 million debt facility that will be used to provide loans specifically to fund the purchase of an electric vehicle.

Westpac executive director for structured finance, Craig Parker, said the funding arrangement was part of the bank’s strategy for capitalising on the surging market for electric vehicles.

“The electric vehicle market in Australia is reaching a pivotal time, and we are proud to partner with Plenti to develop a dedicated green Auto Finance programme, which focuses on growing the adoption of electric vehicles in Australia,” Parker said.

“Westpac is committed to supporting our clients in responding to the challenges of climate change through innovative and sustainable financing solutions, and this transaction is another example of the bank’s commitment to be at the forefront of sustainable finance in Australia.”

Plenti said that it had lent more than $1.1 billion across its total portfolio of loans, which includes around $130 million in loans used to finance the purchase of residential solar installations.

“We’re delighted to be working with AGL in a strategic partnership that reflects our wholesale commitment to a more sustainable future for Australia,” Plenti CEO Daniel Foggo said.

“Together we’re providing a solution that makes solar and home battery systems more accessible for Australian households, allowing customers to save on their power bills while helping the environment at the same time.”

As part of the partnership, eligible customers will be able to participate in AGL’s virtual power plant platform, allowing customers to benefit from additional payments for allowing stored power to be sent into the grid during peak electricity periods.

Customers that join and contribute to our VPP may be eligible for a sign-on bonus or ongoing bill credits for allowing AGL to access power stored by their batteries, usually during times of peak electricity demand.