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The federal government has unlocked an additional $50 million to go towards framers, freight companies, and other small- to medium-sized enterprises (SMEs) accessing cheaper finance on solar, batteries, and more energy-efficient vehicles and equipment.
According to the government, the investment through the Clean Energy Finance Corporation (CEFC) will go towards discounted finance worth $250 million by non-bank lender Metro for electric vehicles, rooftop solar, and batteries.
Furthermore, discounted financing is available for more energy-efficient farm and building machinery such as tractors, harvesters, earthmovers, and cranes.
For financing on a $60,000 electric vehicle, eligible customers could save around $1,700 in interest over five years, according to the Albanese government.
This comes as the non-bank lender recently launched a new green lending program MetroEco, which supports a 1 per cent discount for eligible customers on Metro’s standard rate, with the CEFC financing backing a 0.5 per cent discount, matched by Metro Finance.
CEFC CEO Ian Learmonth said: Australia’s estimated 2.4 million SMEs account for up to 98 per cent of Australian businesses, and are in many ways the backbone of our economy.
“They play a central role in not only providing goods and services we need to live and work but also an integral part of our communities.
“This investment is about ensuring this dynamic and vital part of our economy can benefit from the clean energy transition, with lower energy use, lower energy costs and a smaller carbon footprint.”
Phillip Crossman, Metro CEO, said: “We are thrilled to be working with the CEFC for a second time to offer our SME clients this important incentive which will benefit Australia’s small business community, consumers and Australia’s path to emissions reduction.
“We are proud to be one of only a handful of non-bank lenders selected by the CEFC based on specific criteria.
“This offering demonstrates Metro’s commitment to, and investment in the continued growth and evolution of the clean energy market and green lending in Australia, which is on a growth trajectory.”
The non-bank lender aims to engage with clients and accredited brokers to highlight the benefits of choosing greener equipment options in order to drive more consumer interest while offering more information about electric vehicles.
Minister for Climate Change and Energy Chris Bowen MP said the CEFC investment will help Aussie businesses bring down their operating costs.
“The Albanese Government is putting the power back in the hands of small business, to give Australians more opportunities to benefit from the energy transition and ease cost‑of‑living pressures,” Bowen said.
“Clean technologies like EVs, solar, batteries and electric machinery are a great way for businesses to save on energy bills and decarbonise.”
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