EVs will be cheaper to procure under a Clean Energy Finance Corporation (CEFC) deal to help small-to-medium-sized businesses (SMEs) through discount loans for a broad range of clean energy technologies offered by Australian auto finance lender Metro.
The $50 million CEFC commitment to the new $250 million MetroEco green securitisation warehouse will make it cheaper to finance EVs, solar PV, batteries, and more efficient farming and building machinery, says CEFC.
“Australia’s estimated 2.4 million SMEs account for up to 98% of Australian businesses and are in many ways the backbone of our economy,” says CEFC chief executive Ian Learmonth.
“From those working on the land and in the built environment, to business owners managing shops around Australia, upgrading to best-in-class equipment for EVs, energy efficient tractors, harvesters, earth movers and cranes will help improve energy use and reduce emissions.”
MetroEco supports a 1% discount for eligible customers on Metro’s standard rate, with the CEFC finance backing a 0.5% discount, matched by Metro Finance. For example, eligible customers with a loan of $60,000 for an EV could save some $1700 in interest expenses over five years.
“We are proud to be one of only a handful of non-bank lenders selected by the CEFC based on specific criteria,” says Metro chief executive Phillip Crossman.
“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.”
CEFC executive director Richard Lovell says the impressive range of renewable energy and energy efficient equipment supported by this initiative has the capacity to improve long-term resilience to energy price fluctuations and help businesses respond to growing consumer demands for greater transparency and sustainability.
Metro specialises in auto and equipment, finance for businesses, car finance for consumers, and novated leasing, and says it is making it easier and more affordable for small-to-medium-sized businesses (SMEs) to invest in environmentally friendly assets.
The discounts apply to new battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) on a loan amount of up to $90,000.
Metro says it is also financing three new assets for the first time – batteries, solar and EV charging stations, adding that businesses can bundle any of these in a single loan to get the best interest rate discount.
The MetroEco announcement comes as Metro releases its own research forecasting the uptake of ‘green assets’ among motorists.
A survey of an independent panel of 1000 Australians, commissioned by Metro, found that 66% of Australian motorists if they purchased an EV would invest in a home battery or solar panels to charge it.
Almost a third (30%) of respondents said they would purchase one of the items when they bought the car, and 37% would invest in these assets within a year of purchasing, or when they were able to afford it.
Metro has launched a MetroEco information microsite the MetroEco Hub to inform accredited brokers and borrowers about the program, green technologies, emissions profiles and energy performance data to encourage adoption of green assets.
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