The Clean Energy Finance Corporation (CEFC), in partnership with the Federal Government, will provide $125 million to encourage builders and renovators to construct dwellings that meet high energy efficiency standards.
The $125 million investment will be provided to the Commonwealth Bank of Australia’s (CBA) Green Home Offer, and will be applicable for use on technologies such as battery-ready solar panels, electrification and heat pump water systems.
Research by Green Building Council Australia shows improved energy efficiency, and the installation of solar PV, reduces household energy bills by at least $800 a year.
The Green Home Offer has been designed to help Australians live in more comfortable, healthier homes, while also saving them hundreds of dollars a year in interest payments on their mortgages, saving them thousands of dollars over the life of their loan.
The CEFC finance supports a discount of up to 0.18 per cent p.a. on standard variable rates over a five-year period, equally split between the CEFC and the Commonwealth Bank.
Federal Minister for Climate Change and Energy, Chris Bowen, said improving household energy efficiency was integral to easing cost-of-living pressures.
“It’s great to see the CEFC, the world’s biggest green bank, make smart partnerships to incentivise energy efficient homes,” Mr Bowen said.
“Powering homes with battery-ready solar PV, as well as installing better insulation and windows, will help households cut power bills and emissions.”
Federal Assistant Minister for Climate Change and Energy, Jenny McAllister, said improving energy efficiency will help to ease cost-of-living pressures for Australian households.
“Australia’s residential houses and apartments are responsible for around 23 per cent of overall electricity use and 11 per cent of total carbon emissions nationally,” Ms McAllister said.
“The Government is working with the CEFC to futureproof Australian households through improved energy performance.”
To be eligible for the Green Home Offer, houses must meet a 7-star rating under the Nationwide House Energy Rating Scheme and incorporate a range of initiatives under the Green Building Council of Australia’s ‘Green Star’ Home Standard.
To further improve household energy performance, the Federal Government is currently developing a National Energy Performance Strategy. The strategy forms part of a $15.2 million investment to look at the demand side of electricity use.
The Federal Government has also committed to promoting gender equality in the clean energy transition by joining the Equal by 30 campaign, which seeks to achieve equal pay, equal leadership, and equal opportunities for women in the energy sector.