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This is a must for all environmentalists! The Bank Australia Clean Energy Home Loan

Bank Australia Clean Energy Home Loan

Did you know that there are green home financing options for you such as the bank Australia clean energy home loan? If you are a homeowner thinking about creating a sustainable and energy-efficient home then we have good news for you! Get rewarded doing the right thing! If eligible for this home loan, you’ll receive a substantial 0.40% discount on your variable interest rate for the first five years of the loan. You will also benefit from premium perks as the clean energy home loan is a feature of Bank Australia’s Premium Home Loan Package.

23 percent of Australia’s greenhouse gas emissions come from the property sector. As a result of heating, air conditioning, lighting, and hot water systems, residential buildings account for about half of those emissions.  Bank Australia’s clean energy home loan intends to encourage buyers and builders to have a financial incentive to adopt sustainable design principles. It is the first Australian green home loan to use energy efficiency measurement tools to determine eligibility. So what are the requirements for the loan? There are a variety of ways to meet the requirements.

Requirements for Bank Australia Clean Energy Home Loan

7 star criteria

The property securing the Customer Contract must be built after 31 December 2018 and meet at least one of the below criteria:

  1.  NatHERS rating of 7 stars or higher evidenced by a Nationwide House Energy Rating Scheme Certificate completed by a NatHERS Accredited Assessor
    There are three  NatHERS accreditation organisations: the Australian Building Sustainability Association ABSA (NSW-based organisation), Design Matters (previously the building design association of Victoria) and the House Energy Raters Association (HERA) based in Queensland.
  2. Residential Efficiency Scorecard rating of 7 stars or higher (excluding the impact of installed/installing rooftop solar) This is a Victoria-only program.
  3.  Passive House Certification
  4. ACT Energy Efficiency Rating (EER) Certificate together with a non-accredited NatHERS certificate of 7 Stars or higher for the same property completed by the same ACT licensed building assessor
  5. With respect to apartments only(i.e.aClass2Buildingunderthe National Construction Code), Green Star Design & As Built score of 8 points or more on the credit ‘15 Greenhouse Gas Emissions’; and any other rating agreed between BA and CEFC.

Property upgrade criteria

For the property securing the Customer Contract provide evidence that in the last 12 months:

  1. Achieved a minimum 1 star increase in improvement to the energy efficiency assessment as assessed by the Residential Efficiency Scorecard rating excluding any increase from the impact of installing a solar photovoltaic system. Such assessment must be undertaken by an accredited assessor; or
  2. Implemented three or more of the below improvements in the last 12 months:
    1.  In-home real-time energy monitoring system such as Wattwatchers, Solaranalytics, Efergy, Smappee, Sense, Curb, Nuerio, Flukso, Reposit Power, etc.;
    2. Solar photovoltaic system with a minimum system size of 3kW;
    3. Energy storage system with a minimum system size of 5kWh;
    4. Hot water heat pump or solar hot water system;
    5. Upgrade 75% or more of all windows by area to double-glazed and/or low-emissivity coatings;
    6. Upgrade underfloor, wall and ceiling insulation to levels set out in the prevailing National Construction Code;
    7. Electric vehicle home charging point and provide evidence of ownership of an electric vehicle;
    8. Upgrade to LED lights for 75% or more of all light fixtures;
    9. If the property is air conditioned, no air conditioning unit has an energy rating below 4 stars under the Minimum Energy Performance Standards; and
    10. If the property has a pool, a pool pump with a minimum energy rating of 7 stars under the Voluntary Energy Rating Labelling Program.

High Energy Efficiency Criteria

The property securing the Customer Contract must meet the requirements of 7-star+ as well as three or more of the following items:

  1. Either NatHERS rating of 8 stars or higher or ACT Energy Efficiency Rating (EER) Statement of 8 Stars or higher or Residential Efficiency Scorecard rating of 8 stars (excluding the impact of installed/installing rooftop solar);
  2.  In-home real-time energy monitoring system such as Wattwatchers, Solaranalytics, Efergy, Smappee, Sense, Curb, Nuerio, Flukso, Reposit Power, etc.;
  3. Solar photovoltaic system with a minimum system size of 3kW;
  4. Electrical energy storage system with a minimum system size of 5kWh;
  5. Hot water heat pump or solar hot water system;
  6. If the property is air-conditioned, no air conditioning unit has an energy rating below 4 stars under the Minimum Energy Performance Standards; and
  7. If the property has a pool, a pool pump with a minimum energy rating of 7 stars under the Voluntary Energy Rating Labelling Program.

If you want to learn more about the requirements, here’s a factsheet with information you’d need! As we are heading towards a sustainable future, having energy-efficient and environmentally friendly homes is a must. Talk to us today to find out more about the right home loan option for you!

Disclaimer: The information provided is general in nature and does not constitute financial advice. Please speak to us for recommendations on your individual circumstance and requirements.