New green loan offering to slash cost of solar for apartment owners and renters

Australia’s Clean Energy Finance Corporation (CEFC) has signed a partnership with Lannock Strata Finance to develop a green strata loan product designed to lower the cost of rooftop PV for apartment owners and renters.

The two organisations will develop the loan product for residential strata properties via the $1 billion Household Energy Upgrades Fund, which would offer a material reduction in the current borrowing rate to help finance the installation of rooftop solar on such buildings.

It would provide additional finance for owners corporations that also receive solar rebates under state government programs – such as the NSW government’s Solar for Apartments Residents (SoAR) program, which provides access to owners corporations of eligible apartment complexes to rebates of up to $150,000 toward the cost of installing solar.

Victoria and the ACT have also recently financed programs to support the installation of solar on apartment buildings.

“We can drive down emissions from the built environment by putting more renewable energy into the hands of more Australians,” said Ian Learmonth, CEFC CEO.

“Delivering this green strata loan product would help CEFC finance reach renters and apartment owners – a section of the community which has previously struggled to share in the benefits of renewable energy generation and reduce household costs.”

“Reducing the cost of finance to install solar will overcome a significant barrier to the uptake of solar across Australia’s many apartment buildings, enabling renters and owner occupiers to lower their carbon emissions and energy use.”

Neither the CEFC nor Lannock Strata Finance provided a timeframe on the development of this green strata loan product.

The two organisations confirmed, however, that the product would be backed by the Household Energy Upgrades Fund (HEUFTM) which was created by the CEFC after the federal government allocated $1 billion for its creation.

The HEUF was designed to fast-track sustainability improvements in existing housing across Australia by providing discounted consumer finance through a broad range of co-financiers.

Since its creation, the CEFC has engaged extensively with the sector and received proposals for investment opportunities worth over $850 million in green loans, and announced HEUF-backed investments worth around $345 million, with further commitments expected to be announced this year.