$100 million leasing scheme to increase electric vehicle uptake

Australia's potential solar output exceeds electricity consumed in NEM.

The Clean Energy Finance Corporation is funding a $100 million leasing program aimed at boosting electric vehicle use in Australia.

The deal with Macquarie Leasing will see EV leases offered at a 0.7 percentage point discount on the standard rate.

Customers buying lower emissions passenger vehicles are also eligible for the program, with a 0.5 per cent finance discount.

The Electric Vehicle Council expects the arrangement to finance around 1,200 new EVs. Behyad Jafari, Council CEO, said the agreement was an important show of support for the EV sector.

“The greening of Australia’s vehicle fleet represents extraordinary untapped opportunity to cut carbon emissions,” he said.

Electric vehicle uptake cuts greenhouse emissions: CEFC

Discounted loans scheme encourages uptake of electric vehicles. Image: Pixabay

Discounted loans scheme encourages uptake of electric vehicles. Image: Pixabay

Regular vehicles represent one of the nation’s fastest-growing sources of greenhouse emissions. Estimates show Australia could reduce carbon emissions by around 9 million tonnes by 2030 by increasing uptake of EVs.

Coupled with ongoing decarbonisation of the electric grid, this figure could swell to 27 million tonnes by 2050.

The Macquarie Leasing scheme goes beyond just loans for electric vehicles. The $100 million program also extends to energy efficient vehicle equipment, along with rooftop solar and batteries.

In addition, discounted finance will be offered on equipment to improve the energy efficiency of buildings.

CEFC modelling shows carbon savings of more than 200,000 tonnes of carbon emissions over the life of the program.

CEFC CEO Ian Learmonth said the Macquarie Leasing program was an important extension of the CEFC’s ongoing efforts to embed clean energy solutions across the economy.

Finance scheme supports domestic electric vehicle industry

Unlike other nations, Australia does not provide concessions on registration charges or fringe benefits tax for purchases of EVs.

That’s why discounted leasing programs like Macquarie’s are so important, according to Jafari.

“Unfortunately, we lag advanced developed nations in the uptake of electric vehicles,” he said.

“However, it’s not too late. By getting our tax and investment policies right, Australia can support the development of electric vehicle infrastructure [and] win a slice of a booming global market.”

Initially, Macquarie Leasing will make their discounted loans available to customers through its existing relationships with EV manufacturers.

Customers will receive discounted finance on Macquarie’s standard interest rate when they enter into arrangements to hire, lease or finance the purchase of vehicles that satisfy program criteria.