Green bank backs cheap loans to unlock EVs, solar and batteries for business

The Australian government is investing $50 million to support discounted loans for small and medium-sized businesses wanting to purchase solar, batteries, electric vehicles, and energy efficient equipment.

The $50 million commitment from the Australian government’s Clean Energy Finance Corporation (CEFC) is being poured into the $250 million MetroEco green securitisation warehouse being run by Metro – an independent non-bank lender which specialises in auto and equipment finance for businesses, car finance for consumers, and novated leasing.

Eligible customers will receive a one per cent discount on Metro’s standard rate, making it cheaper to buy clean energy and energy efficient technologies.

For example, eligible customers financing a $60,000 electric vehicle are expected to save around $1,700 in interest over 5 years.

“The discounted loans would mean savings on energy bills and the cost of financing,” said Jenny McAllister, assistant minister for climate change and energy.

​“We want to help small businesses across industries and across the country make every watt count. These lower cost energy performance upgrades mean more control over energy use and emissions, especially in hard to abate sectors.”

The $50 million CEFC investment is also expected to provide discounted finance for farmers and other small businesses looking to purchase energy efficient farm and building machinery such as tractors, harvesters, earthmovers, and cranes.

“This CEFC investment will help Australian businesses bring down their operating costs,” said Chris Bowen, Australian minister for climate change and energy.

“The Albanese Government is putting the power back in the hands of small business, to give Australians more opportunities to benefit from the energy transition and ease cost-of-living pressures,

“Clean technologies like EVs, solar, batteries and electric machinery are a great way for businesses to save on energy bills and decarbonise.”

This marks the second time the CEFC and Metro have worked together, following a 2018 CEFC investment of $50 million into the Metro Green initiative which was designed to encourage customers to choose lower emissions passenger and light commercial vehicles. The investment helped finance an additional 1,000 low emissions vehicles.

Metro also revealed that it is engaging with clients and accredited brokers to highlight the benefits of choosing electric and energy efficient vehicle and equipment options in an effort to drive increased consumer interest.

Specifically, Metro makes available information about EVs, EV charging assets, and solar panels to encourage further uptake, and is also committed to gathering and publishing data on emissions profiles and energy performance.