CommBank, CEFC launch $100m loan facility to drive energy efficient business

Commonwealth Bank has become the latest of Australia’s Big Four banks to join forces with the Clean Energy Finance Corporation in offering lower cost finance to businesses and not-for-profits wanting to invest in energy efficient equipment and technology.

The bank and the CEFC announced the launch of a $100 million Energy Efficient Equipment Finance program on Thursday.

It follows similar loan facilities designed to help businesses cut their operating and energy costs already launched by the CEFC in conjunction with both Westpac and NAB.

The CEFC-financed Commonwealth Bank loan scheme will give business and NGOs access to lower cost finance – 0.70 per cent discount on the bank’s standard asset finance rate for assets ranging of $10,000 to $5 million – for a wide range of assets that meet certain energy efficiency standards.

Eligible investments include a broad range of fuel efficient vehicles, energy efficient lighting and fittings, farm machinery, commercial lighting and rooftop solar panels.

In a statement on Thursday, the CEFC said it expected a significant number of businesses to upgrade their equipment over the coming 12 months, given the significant potential for transport, agriculture, construction sectors to benefit from clean energy technologies

“In a world that is transitioning to cleaner energy through the rapid global uptake of technologies like solar, battery storage and electric vehicles, it is imperative Australian businesses position themselves to take advantage of technologies that will help them work smarter and save them money through reduced energy use and operating costs,” said CEFC CEO Oliver Yates.

“This new program financed by the CEFC and offered through the Commonwealth Bank provides a great opportunity for businesses to invest now in energy efficient, low emissions and renewable
energy technologies,” he said.

Commonwealth Bank managing director of asset finance, David Farr, said businesses were becoming increasingly aware of the multiple benefits to their business of investing in energy efficient technology, including a reduction in their carbon footprint, added value to their brand and improved productivity.

“In particular, we see huge potential for the transport, agriculture and construction industries to realise major benefits from upgrading to energy efficient technologies, including fuel efficient vehicles, and energy efficient lighting and refrigeration,” Farr said.

Last year, the Commonwealth Bank became the first of the Big Four to secure a finance deal with a wave energy developer, when it signed off on a five-year, $20 million loan facility with ASX-listed Carnegie Wave Energy to help finance the Perth-based company’s world-leading CETO 6 project.