Finance has a critical role in supporting households to invest in home energy efficiency improvements. The report considers the policy reforms that can underpin the establishment of a finance market to support investment in energy efficiency upgrades that is efficient, resilient and fair to all.
Financial institutions have innovated to offer a range of residential energy efficiency finance products for owner-occupiers and residential investors. Analysis of the residential energy efficiency finance products offered by the major banks demonstrates that households do have a range of energy efficiency finance products to select from. The common features of products are individual pricing the risk of loans, interest rates generally higher than standard variable housing loan rate and loan repayments shorter than housing loan repayment terms.
This research examined the strengths and limitations of governance in financing and delivering home energy upgrades in existing homes in Australia. The research:
Research findings highlight where finance arrangements support home energy upgrades and where opportunities for reform remain. Alternative financing, such as income-contingent loans and property-linked finance, can reach households that existing products do not serve well.
Led by Centre for Sustainable Development Reform (CSDR), this research is part of the Energy Upgrades for Australian Homes (EUAH), this project co-funded by UNSW & RACE for 2030.
EUAH is a national collaboration across five universities and CSIRO. The overall objective of EUAH is to develop the tools, evidence, and guidance necessary to enable councils and community organisations to deliver tailored, scalable, and effective energy upgrades for Australian homes.
