Add CategoryWestpac is the first bank to offer homeowners government-subsidised discounted green loans to install solar panels and other energy-efficient home upgrades, potentially saving thousands of dollars in interest costs.
From next week, eligible Westpac home loan customers will be able to borrow up to $50,000 at a 4.49% variable interest rate for up to 10 years to install new energy efficiency upgrades around the home.
Customers could expect to save about $3,475 in interest over 10 years on a $30,000 green loan, compared to the bank’s basic variable rate mortgage.
Energy efficiency upgrades include installation of solar panels, batteries, hot water heat pumps, electric vehicle chargers, double-glazed windows and insulation.
It comes as nine out of ten Aussies looking to renovate within five years say they would consider making a sustainable upgrade to their home, according to a 2024 Westpac survey.
The big four lender is the first bank to offer discounted loans through the federal government’s $1 billion Household Energy Upgrade Fund (HEUF), which subsidises affordable finance for green home energy upgrades.
Westpac consumer chief executive Jason Yetton said the new loans would help customers to make more environmentally conscious choices and improve their homes.
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Homeowners can access lower-cost loans for energy efficient home upgrades like installing solar panels. Picture: Getty
“We recognise more Australians want to play their part to reach a net zero future, and that starts at home," Mr Yetton said.
The new loan offering is backed by the federal government-owned ‘green bank’, known as the Clean Energy Finance Corporation (CEFC), which runs the HEUF.
The $1 billion HEUF is expected to help more than 110,000 Australian households to lower their energy bills by using cheaper loans to fund energy-saving upgrades.
Assistant Minister for Climate Change and Energy Josh Wilson said making homes and businesses more energy efficient was one important way of easing the cost of living.
“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,” Mr Wilson said.
It comes after the CEFC partnered with non-bank lender Plenti in June to offer cheaper green loans for energy efficient home upgrades.
Home energy efficiency was a big driver for many Aussies when they were looking to buy, rent or build a new home, according to the PropTrack Origin Australian Home Energy report.
“Amid the rising cost of living, both homeowners and renters are actively seeking ways to minimise expenses, making homes with higher energy efficiency ratings an appealing solution for reducing energy bills,” PropTrack senior analyst and report author Karen Dellow said.
Property seekers are increasingly prioritising energy-efficient features in homes. Picture: Getty
A 2024 Lonergan Research survey of 1,007 Australians, on behalf of Westpac, found that about two in five (38%) people would consider installing solar panels on their home.
One in four would consider putting in solar batteries or changing to solar hot water, while more than a fifth of respondents would consider installing insulation or putting in double-glazed windows, the survey found.