The Eco Plus Clean Energy Home Loan is incentivising newer homes that have a Nationwide House Energy Rating Scheme (NatHERS) rating of 7.5 stars or higher plus a solar system. Backed by investment of $30m from the Clean Energy Finance Corporation (CEFC), eligible homes could be eligible for reduced interest rates for up to five years on their home loan interest rate.
Bank Australia first launched its Clean Energy Home Loan with backing from the CEFC in 2020 and has since funded over 300 loans for energy efficient homes.
Damien Walsh, Bank Australia Managing Director, says this evolution of the Clean Energy Home Loan is linked to the bank’s broader climate strategy.
“Our customers have told us how important action on climate change is to them. We’re proud that our Clean Energy Home Loan already makes up more than 1% of our total home loan portfolio,” said Walsh. “As we start to set net zero targets for the emissions from our lending, we know we need to keep innovating to incentivise the green homes of the future.”
Customers will also be able to qualify for the Eco Plus Clean Energy Home Loan using the new Green Star Homes certification from the Green Building Council of Australia. Green Star Homes are independently assessed against three key criteria – positive, healthy and resilient. Qualifying homes have a high NatHERS rating, use renewable power and are all-electric.
CEFC CEO Ian Learmonth said: “We’re pleased to continue working with Bank Australia to provide Australians with added incentives to choose greener options for their homes. Building homes that have strong energy efficiency measures today creates more resilient cities and regions for the future. At the same time, incentivising new homebuyers and builders to adopt stronger sustainability design standards is an important step in reducing our carbon footprint as we transition towards net zero emissions.”