Federal Government to fund residential energy efficiency offer to lower prices and emissions
Sustainable homes will be easier to access under a new agreement between the Federal Government, the Clean Energy Finance Corporation (CEFC) and the Commonwealth Bank of Australia (CBA).
A $125 million investment will be provided to CBA’s Green Home Offer to encourage home builders and renovators to construct dwellings that meet high energy efficiency standards. This includes 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. Energy efficiency appears to be the key to taking pressure off energy bills, the energy system, and emissions.
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% p.a. on standard variable rates over a five-year period, equally split between the CEFC and the Commonwealth Bank. For example, on a loan balance of $750,000 and with a discount of 0.18% p.a., customers could save about $1,350 in interest in the first year of the loan*.
Minister for Climate Change and Energy Chris Bowen said improving household energy efficiency was integral to easing cost-of-living pressures.
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% of overall electricity use and 11% of total carbon emissions nationally.
“The Government is working with the CEFC to futureproof Australian households through improved energy performance,” Assistant Minister McAllister said.
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 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.
*calculation based on current rates for eligible Green Home Offer customers with an owner-occupied principal and interest 30-year home loan with a wealth package and an LVR of 80%.