$100m in asset finance made available to businesses

The Clean Energy Finance Corporation (CEFC) and Commonwealth Bank have launched a $100 million Energy Efficient Equipment Finance program to provide Australian businesses with lower cost finance for a wide range of assets that meet certain energy efficiency standards.

The new program enables businesses to benefit from reduced energy and fuel costs, while also lowering their carbon emissions, and will support business investment in energy-efficient and lower emissions vehicles, equipment, machinery and fixtures that meet the CEFC’s investment guidelines.

The finance will provide a 0.70% discount on the bank’s standard asset finance rate for assets ranging from $10,000 to $5 million, where the asset’s technologies meet the CEFC’s investment guidelines. Eligible investments include a broad range of fuel-efficient vehicles, energy-efficient lighting and fittings, farm machinery, commercial lighting and rooftop solar panels.

CEFC CEO Oliver Yates said the program provided businesses with compelling reasons to invest in energy-efficient and renewable technologies.

“In a world that is transitioning to cleaner energy through the rapid global uptake of technologies like solar, battery storage and electric vehicles, it is imperative Australian businesses position themselves to take advantage of technologies that will help them work smarter and save them money through reduced energy use and operating costs,” Yates said.

“This new program financed by the CEFC and offered through the Commonwealth Bank provides a great opportunity for businesses to invest now in energy-efficient, low-emissions and renewable energy technologies,” he said.

Business interest in energy-efficient assets continues to grow steadily. The CommBank Asset Financing Australia (AFA) Index Report 2016, conducted by East & Partners, showed steady increases in both the number of businesses using, and planning to use, energy-efficient vehicles or equipment.

More than 800 businesses were surveyed throughout the 2015–16 financial year and findings include:

• One in five businesses (20.5%) plan to use energy-efficient vehicles or equipment in the next 12 months (up from 14.7% from the beginning of the year).
• One in eight businesses (12.5%) currently use energy-efficient vehicles or equipment (up from 9.5%).
• The number of businesses that had no intention of using energy-efficient vehicles or equipment fell (from 59.0% to 45.1%) in the 12 months to June 2016.

Commonwealth Bank Managing Director Asset Finance David Farr said: “We know energy-efficient assets help reduce operating costs, but we’re seeing businesses increasingly aware of other benefits to their business, reducing their carbon footprint, adding value to their brand and improving their productivity.

“In particular, we see huge potential for the transport, agriculture and construction industries to realise major benefits from upgrading to energy-efficient technologies, including fuel-efficient vehicles, and energy-efficient lighting and refrigeration,” Farr said.