Joint media release: Energy upgrades fund open to Australian households to drive bill savings

The Hon Chris Bowen MP, Minister for Climate Change and Energy

Senator The Hon Jenny McAllister, Assistant Minister for Climate Change and Energy

Australian households now have greater access to discounted green loans for energy upgrades with the first delivery of the Albanese Government’s $1 billion Household Energy Upgrades Fund (HEUF).

Making homes and businesses more energy efficient is one important way we can ease the cost of living and take pressure off Australians.

In this first round, the Albanese Government through the Clean Energy Finance Corporation (CEFC) is unlocking $60 million through lender Plenti to support cheaper finance for rooftop solar, home batteries and other energy efficiency upgrades for Australian homes.

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.

Race for 2030 analysis found that even a basic retrofit can save between 18 and 31 percent, and a comprehensive retrofit could save up to $1600. The HEUF is expected to help more than 110,000 Australian households to lower their energy bills through making lower cost loans available.

This is the first allocation under the $1 billion fund established to turbocharge discount financing options for home energy performance upgrades, partnering with banks and other lenders on upgrading homes to keep them warmer in winter and cooler in summer.

The first $60 million allocation will allow Plenti to offer green loans to households with interest rate discounts of up to 2.74% per annum and as much 3.34% per annum if households sign up to a virtual power plant plan.

Applications for these loans will open on 5 June through Plenti.

Minister for Climate Change and Energy Chris Bowen said this investment will unlock savings for thousands of households.

“These loans will let more Australians put solar panels on their roof or a battery at their back door, providing big savings on their energy bills for decades to come,” Minister Bowen said. 

“The Albanese Government is putting the power back in the hands of households, to give Australians more opportunities to benefit from the energy transition and ease cost-of-living pressures.”

Assistant Minister for Climate Change and Energy Jenny McAllister said the government was working to help households with energy costs.

“Australians have led the world in the take up of rooftop solar. Energy performance and electrification is the next frontier. This fund and deal will unlock cheaper finances for households to embrace home energy upgrades and unlock both comfort and savings,” Assistant Minister McAllister said.

“More than 7 million homes were built before national codes included energy performance standards. Just upgrading a house from a 1-star rating to a 3-star rating can reduce energy bills by 30 per cent, and the Fund will help more than 110,000 households access lower cost green loans to do just that.

“Through this Fund there are now more opportunities for families to install solar panels, batteries and other energy efficient devices, to make homes warmer in the winter, cooler in the summer and cheaper to run.”

More information about the Housing Energy Upgrades Fund.