Westpac, one of Australia’s leading banks, has taken a significant step towards promoting sustainability and energy efficiency by becoming the first bank to offer government-subsidised discounted green loans to homeowners. This initiative aims to encourage more Australians to make environmentally conscious choices and improve their homes by installing solar panels and other energy-efficient upgrades.
Starting next week, eligible Westpac home loan customers will have the opportunity to borrow up to $50,000 at a competitive variable interest rate of 4.49% for up to 10 years. This will allow homeowners to finance the installation of new energy efficiency upgrades such as solar panels, batteries, hot water heat pumps, electric vehicle chargers, double-glazed windows, and insulation. By opting for these green loans, customers could potentially save thousands of dollars in interest costs over the loan term.
According to a 2024 Westpac survey, nine out of ten Australians planning to renovate within the next five years expressed interest in making sustainable upgrades to their homes. This highlights a growing trend towards eco-friendly living and the increasing importance of energy efficiency in residential properties.
The discounted loans offered by Westpac are made possible through the federal government’s $1 billion Household Energy Upgrade Fund (HEUF), which aims to subsidise affordable finance for green home energy upgrades. By partnering with the Clean Energy Finance Corporation (CEFC), Westpac is able to provide lower-cost loans to help homeowners make their properties more energy efficient.
Jason Yetton, Westpac’s consumer chief executive, emphasized the bank’s commitment to supporting Australians in their efforts to achieve a net-zero future. He stated that the new green loans would enable customers to make environmentally conscious choices and enhance the sustainability of their homes.
Assistant Minister for Climate Change and Energy, Josh Wilson, highlighted the importance of making homes and businesses more energy efficient as a means of reducing the cost of living. The HEUF is expected to benefit over 110,000 Australian households by enabling them to lower their energy bills through energy-saving upgrades funded by affordable loans.
In addition to Westpac, the CEFC has also partnered with non-bank lender Plenti to offer cheaper green loans for energy efficient home upgrades. This collaboration reflects a broader industry effort to promote sustainability and support homeowners in making environmentally friendly choices.
The growing interest in energy efficiency among Australians is evident in surveys and reports that indicate a strong preference for sustainable home upgrades. Property seekers are increasingly prioritising energy-efficient features when buying, renting, or building a new home, as they seek to minimize expenses and reduce energy bills.
Overall, Westpac’s initiative to offer government-subsidised discounted green loans for energy-efficient home upgrades represents a significant step towards promoting sustainability and supporting homeowners in making environmentally conscious choices. By providing affordable financing options for solar panels and other energy-saving upgrades, the bank is empowering Australians to create more sustainable and energy-efficient living spaces.