Today we announced an 18 month extension of our partnership with the Australian Government’s Clean Energy Finance Corporation (CEFC) for funding of our innovative green loan marketplace.
When we launched in May 2017, the Plenti^ green loan marketplace was the CEFC’s first investment in a consumer lending platform. Seeded with $20 million from the CEFC, the green market provides affordable finance options to Australian homeowners and businesses purchasing approved energy-efficient products. In the first year alone, over 1000 households and small businesses have financed energy efficient and renewable energy products through a Plenti green loan.
These loans have helped finance a wide range of green product purchases, including solar panels, battery systems, energy-efficient lighting, energy-efficient heating and cooling systems. Solar systems financed over the first 12 months of the program have resulted in a reduction of over 2,250 tonnes of CO2 emissions annually.
Homeowner demand for energy efficiency
Interestingly, homeowners of all ages from their 20s to their 60s have taken out renewable energy loans, demonstrating strong demand for consumers to make their homes energy efficient, with 9 out of 10 renewable energy loan borrowers owning their home with a mortgage. A number of those households have invested in solar systems and unsurprisingly this has been predominantly from the sunshine state of Queensland (39%), although closely followed by New South Wales (23%).
Retail and other institutional investors have also shown strong interest in the renewable energy loan marketplace. In addition to the CEFC, over 200 retail investors have financed renewable energy loans, earning up to 6.5% per annum, demonstrating an increasing investor demand for green investments with good returns.
Strong early response to the scheme
Our CEO, Daniel Foggo, said: “With the support of the CEFC our Renewable Energy Loan marketplace has achieved strong traction in its first 12 months. Continued reductions in the cost of solar systems coupled with low-cost finance make these products a smart choice for many more Australians. As power costs continue to rise the benefits of moving to solar power have become very clear. We’re delighted to announce the continuation of our partnership with the CEFC to help meet the green energy finance needs of Australian homes and business.”
CEFC Debt Markets lead Richard Lovell said: “We’re pleased to see this strong early response to the Plenti Renewable Energy Loan marketplace from both borrowers and investors. Already we’ve seen solid lending volumes, and we’re confident additional borrowers will take up the finance as the marketplace develops.
“This is about giving borrowers a new way to get the most out of clean energy, as well as cut their energy use and lower their carbon footprint. Together with Plenti, we’re also looking forward to seeing more clean energy investors come into this innovative Renewable Energy Loan marketplace.”
Spend less on power
To help us distribute our low-rate renewable energy loan to potential borrowers, we have secured partnerships with a number of Australia’s leading manufacturers, installers and suppliers of solar and other clean energy products. These partners understand that a low-cost financing option can make clean energy options more affordable, helping more Australians save on energy bills while contributing to the health of the environment.
Based on research conducted by Plenti, customers installing solar panels often find that, even after loan repayments, they are spending less on power in the first month, with the whole system expected to pay for itself over 5-6 years, but lasting for up to 20 years.*
*Solar system repayments are an estimate only, based on a 5kw system located on a north-facing property in NSW with power consumption for a family of 4, 40% usage of solar power, 3% inflation and a borrower with a good credit history. Actual loan repayments and savings will depend on your selected solar system, energy usage, power supplier and local climate.
^Plenti was known as RateSetter prior to August 2020.
Lender rates are displayed on an annualised basis and net of applicable fees. Lender rates assume payments received are continually reinvested at the stated rate and assume the investment is protected by the Provision Fund in the event of any borrower late payment or default, however, there is no guarantee nor warranty as to any protection from the Provision Fund. Lender rates are also available for our retail markets funding consumer personal loans. See our Product Disclosure Statement for further details.
This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of Plenti as at the date of publication and may later change without notice.