The Federal Government is helping homeowners make energy upgrades and save on their bills by working with one of Australia’s leading banks to offer discounted green loans.
The government is committing $160 million to support Westpac’s Sustainable Upgrades Home Loan through the Clean Energy Finance Corporation (CEFC).
This continues the rollout of finance from the government’s $1 billion Household Energy Upgrades Fund (HEUF), which helps homes become more energy efficient and lowers the cost of living.
The HEUF is expected to help more than 110,000 Australian households to lower their energy bills by making lower-cost loans available.
Westpac Sustainable Upgrades home and investor loans will be available to eligible home loan customers who want to improve their homes’ energy efficiency. The loans include installing solar panels, batteries, hot water heat pumps, electric vehicle chargers, double-glazed windows, and insulation.
Under one of Westpac’s Sustainable Upgrades Home Loans, with a loan balance of $30,000, eligible customers could save around $3,475 in interest over 10 years compared with Westpac’s basic variable rate home loan.
Federal Minister for Climate Change and Energy, Chris Bowen, said the $160 million commitment would unlock household savings.
“This innovative collaboration will give Australians more opportunities to benefit from the energy transition and ease cost-of-living pressures,” Mr Bowen said.
“These competitive-rate loans will give customers the freedom to choose how to upgrade their homes, make them more energy efficient, and save on their bills.”
Assistant Minister for Climate Change and Energy, Josh Wilson, said making homes and businesses more energy efficient is one meaningful way to ease the cost of living, relieve pressure on Australians, and reduce emissions.
“This investment will help people with older homes and appliances that don’t meet modern energy standards to upgrade and keep money from leaking out the door.”
The HEUF’s first commitment, made in May 2024, was $60 million through lender Plenti to support cheaper finance for energy efficiency upgrades.
The Westpac loans will launch with a competitive variable interest rate of 4.49 per cent.
More information can be found here: https://www.westpac.com.au/personal-banking/home-loans/sustainable-upgrades-home-loan
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