Australia’s Largest Bank Offers Interest Free Loans for Renewable Energy Products

A Commonwealth Bank sign is seen on a building in Melbourne, Australia, on Oct. 30, 2023. Susan Mortimer/The Epoch Times

Australia’s largest bank will offer interest-free loans to encourage people to buy renewable energy products like solar panels or batteries.

The Commonwealth Bank of Australia (CBA) will provide loans of between $1,000 and $30,000 for customers who buy clean energy products from select companies, according to an announcement.

The CBA is a signatory to the United Nations-convened Net Zero Banking Alliance, a group of global banks working to help reach net zero by 2050.

The “Big Four” CBA has also launched the InstalPay system to facilitate sales with UPowr, a solar and battery company, the first company to be linked to the service.

Solar panels can be seen on the roof of a house in Albany, Western Australia, on Aug. 8, 2023. Susan Mortimer/The Epoch Times

This InstalPay loan is only available online for a loan term of between one and five years.

Marcos Meneguzzo, executive general manager of consumer finance, said, “We’ve expanded our range of financing options to support rooftop solar, batteries, electrification, and energy efficiency, as well as electric or hybrid vehicles. We want to make these products more accessible to more Australians.

“CommBank customers who use InstalPay to pay for their UPowr products will be eligible for interest-free finance paid off in instalments, helping them potentially realise the benefits of lower energy bills from the first month. InstalPay creates more choice when budgeting for larger purchases.”

The bank also offers a Green Loan, with a 2.99 percent per annum low fixed interest rate with no fees. This can also be used for solar panels and battery packs, along with energy-efficient window treatments and electric vehicle charging stations.

Climate Change Push

UPowr CEO Stu Philpot explained the company wanted to make the switch to renewables “effortless.” UPowr is a New Energy Tech-approved seller.

“We believe in a brighter, greener future for every Australian. Our partnership with CommBank reinforces our mission, ensuring an accessible and hassle-free green energy journey for all their customers,” Mr. Philpot said.

The Commonwealth Bank reported a net profit after tax of $10.2 billion in the 2023 financial year, 6 percent higher than the previous financial year.

At the company’s annual general meeting in Sydney on Oct. 11, CBA chair Paul O'Malley said expectations were rising for organisations to “manage the risks” and capitalise on the “opportunities presented by climate change.”

“This past year has been challenging for our customers and communities in Australia and New Zealand impacted by weather-related events. Managing the risks and opportunities of climate change, and supporting our customers both continue to be a focus,” Mr. O'Malley said.

Most of the major banks, including Westpac and National Australia Bank, offer personal loans for clean energy initiatives such as solar panels and electric car chargers. ANZ also has a green loan for business customers.