Go Green with Green Loans in 2024
A green loan is a type of personal loan used to fund the purchase and installation of approved clean energy products in Australia. Like a personal loan, green loans allow you to borrow what you need, and pay is back over a selected time period. This significantly boosts the process, as well as the affordability and accessibility of installing solar panels and batteries, resulting in cost savings early on your electricity bills.
In this article, we will discuss the green loan rates currently available for the installation of solar, batteries, and EVs and provide the knowledge to get you started on your renewable energy journey. Whether you’re a homeowner or business owner, we want to help you make an informed decision and ensure you choose the right loan for your needs.
What can a green loan be used for?
A green loan can significantly ease the upfront cost pressure for both the installation of approved clean energy products and the uptake of green vehicles. Green vehicle loans vary significantly between EV charging and vehicles that contribute to the reduction of emissions. A ‘green’ vehicle is defined within these loans as a vehicle with emissions intensity that does not exceed 120 grams of C02 emissions per km.
In simple terms, a green loan allows you to add sustainable upgrades to your home. This includes the following installations and upgrades:
- Solar panel installation
- Sustainable heating or cooling systems
- Double glazing
- Electric vehicle charging
- Water tanks
- Energy-efficient appliances
- Insulation
How do I know if I am Eligible for a Green Loan?
Each Green Loan will differ in conditions, but for the most part, you will need to take into consideration age, income, credit, and history. Most Green Loan applications require you to be over 21 years old and make a certain amount per year. For every loan, the provider will look at your credit and history.
What Green Loan is best for me
This will heavily depend on personal factors; however, the types of loans should be considered. Fixed interest rates will stay the same for the entire loan period, however they tend to be attached to higher rates over time. Variable interest rates are subject to change over time, however present more flexible features and generally have lower rates. Unsecured loans are cash borrowed; therefore, rates may be higher, but your property is not at risk. On the other hand, secured loans, generally have lower interest rates, however assets are used as collateral.
What should I look for in a Green Loan?
- Fees: Keep an eye on other fees within the conditions, including application/establishment fees, Monthly subscription fees, late and early payments.
- Loan term: The shorter the loan length, the likelihood less interest will be paid, however loan repayments may be at a greater amount.
- Comparison Rate: This factors in the interest rate as well as the fees you will be charged. Comparing this to the advertised rate can give you a better understanding of the full cost.
- Extras: Some green loans feature additional perks such as free extra or flexible repayments. This can help you save on interest overtime.
What Green Loans can I get in 2024?
Below is a table with a collection of current green loans available, alongside the rate per annum, loan term, size and any extra conditions that apply.
Green Loans | ||||
Loan Name | Rate per Annum | Loan Term | Loan size | Conditions |
Community First Bank – Green Loan | 6.54% | 1-10 Years | Min $1,000 | $10 Monthly fee, plus $249 Application Fee |
CommBank Green Loan | 3.99% | 10 Years | Min $5,000- Max $30,000 | To be eligible have existing CommBank home loan or Investment Home Loan. |
Westpac Personal Loan for Solar and Battery | 7.99% | 1-7 Years | Min $4,000- Max $50,000 | —– |
RACQ Bank Green Home Loan | 2.79% | 10-15 Years | Min $3,000- Max $50,000 | To be eligible have existing RACQ Bank Home Loan with a minimum loan balance of $250,000 |
Gateway Bank Eco Personal Loan | 6.44% | 1-5 Years | Min $3,000- Max $30,000 | $149 Establishment Fee |
Queensland Country Bank | 6.49% | 1-10 Years | Min $3,000- Max $50,000 | —– |
Australian Mutual Bank Green Loan | 7.10% | 1-7 Years | Min $5,000- Max $40,000 | —— |
Brighte Green Loan | 8.99% | 2-10 Years | Min $1,000- Max $45,000 | Establishment fee starting from $199, $2.70/weekly account keeping fee. |
Plenti Green Loan | 9.49% | 3-10 Years | Min $2,000- Max $45,000 | $8.99 Monthly fees |
HandyPay Green Loan | 7.37% | 1-10 Years | Min $2,001- Max $75,000 | Establishment fee $250 |
What Green Loans are available for Sustainable Vehicles in 2024?
Below are the current Green Loans available for sustainable vehicles, with what you need to know about interest rates, loan term, size, and conditions.
Green Vehicle Loans | ||||
Loan Name | Rate per Annum | Loan Term | Loan Size | Conditions |
RACQ Bank Green Car Loan | 5.99% | 1-5 Years | Min $3,000- Max $150,000 | —— |
Bendigo Bank Secured Green Personal Loan | 5.49% | 1-7 Years | Min $2,000 | —— |
Queensland Country Bank Green Car Loan | 5.99% | 1-7 Years | Min $1,000- Max $150,000 | $150 Establishment fee, Plus Document Fee applies. Available to existing members of the bank. |
BankFirst Green car Loan | 6.29% | 1-7 Years | Min $5,000 | $195 Establishment fee |
Green Loan options for Businesses:
Green loans for businesses are designed to encourage Australian businesses to pursue sustainable, eco-friendly growth. Below are some of the Green Loan exclusive options for businesses.
Green Business Loans | ||||
Loan Name | Rate per Annum | Loan Term | Loan Size | Conditions |
ANZ Green Loan | 6.45% | 1-5 Years | Min $5,000- Max 3 million | Must meet eligibility criteria. |
QLD Country Bank Business Green car Loan | 5.99% | 1-7 Years | Min $1000- Max $150,000 | $150 establishment fee, Plus eligibility criteria. |
How we can help?
Horan & Bird started in 2004 and has built one of the longest-standing solar companies in Australia. We have over 30,000 customers and have won Master Electrician of the Year five times, along with Australian Small Business of the Year in 2012.
Not all companies are created equal, and the same applies to solar companies. That is why choosing a company with experience is essential. This way, you can be sure your system is installed correctly and will last for years.
Furthermore, we understand that each solar journey is unique, and our approach is tailored to meet your specific needs. Remember with any green loan, although you will have to bear the costs, you will make savings in the long term because the running costs will be lower. Additionally, you’ll be stretching the cost and minimising the short-term impact on your wallet and the planet.
Founder of Horan & Bird. Director of Master Electricians Australia and Board Member of Solar Accreditation Australia. John has played a key entrepreneurial role in the transformation of the Energy Landscape in Queensland.
