A new initiative from National Australia Bank (NAB) and the Clean Energy Finance Corporation (CEFC) is offering small to medium sized businesses access to discounted financing for solar panels and energy efficiency upgrades.
The $120 million program will offer a rate 70 basis points below NAB’s standard equipment finance rate on qualifying projects up to $5 million.
“This program is unique to NAB and a real point-of-difference,” said Cindy Batchelor, Executive General Manager NAB Business.
“We’ve been working with customers to help them manage their natural capital risk for some time and we know that energy risk is a key concern. It’s great to be able to help them address this concern with the support of the CEFC.”
Pre-approved assets under the initiative include vehicles, irrigation systems, solar energy systems, building and lighting upgrades, and refrigeration. Solar energy options encompass rooftop solar power systems, solar thermal for hot water, heat pumps and solar panels to displace diesel generation.
“Businesses can seize the significant opportunities to save with commercial solar where their peak power demand profiles match the daytime generation profile of solar,” says NAB.
While available across a broad commercial base, the program has a particular emphasis on agribusiness and regional Australia.
According to the bank, Australian Alliance to Save Energy modeling indicates when measured as GDP per unit of energy input, Australia’s energy productivity is 14% lower than the average of the G20 countries – so there is significant room for improvement.
“A business or organisation that takes energy efficiency measures seriously, shows that they are serious about running a profitable and highly productive business and organisation, with the added benefit of reducing their emissions,” said CEFC CEO Oliver Yates.
Previous NAB/CEFC collaborations include the inaugural issue of the NAB’s Climate Bonds, used to finance renewable energy developments in Victoria, South Australia, Tasmania, Western Australia, New South Wales and the ACT.
Another strategy for SME’s to start slashing their power costs is through a solar PPA (Power Purchase Agreement) or leasing arrangement. These options can remove the burden of ownership and the need for up-front capital outlay, while delivering electricity at a cost significantly less than usual daytime mains-grid rates.
