RateSetter has announced an 18-month extension to its green loans agreement with the Clean Energy Finance Corporation (CEFC), attributing its decision to a “strong launch growth”.
In May 2017, the CEFC agreed to provide RateSetter with $20 million in funding for green loans, designed to provide affordable finance options to Australian home owners and businesses purchasing approved energy-efficient products.
According to RateSetter, over 1,000 households and small businesses received finance through the initiative for products including solar panels and battery systems, energy-efficient lighting and energy-efficient heating and cooling systems.
The P2P lender has also noted that it received additional funding from retail and institutional investors, with over 200 retail investors financing green loans, earning up to 6.5 per cent per annum.
RateSetter also noted that in order to reach borrowers, it has secured distribution partnerships with manufacturers, installers and suppliers of solar and other clean energy products.
Commenting on the announcement, CEO of RateSetter Daniel Foggo said: “With the support of the CEFC, our green loan marketplace has achieved strong traction in its first 12 months.
“Continued reductions in the cost of solar systems, coupled with low-cost finance, makes these products a smart choice for many more Australians. As power costs continue to rise, the benefits of moving to solar power have become very clear.
“We’re delighted to announce the continuation of our partnership with the CEFC to help meet the green energy finance needs of Australian homes and business[es].”
CEFC debt markets lead Richard Lovell added: “We’re pleased to see this strong early response to the RateSetter green loan marketplace from both borrowers and investors.
“Already we’ve seen solid lending volumes, and we’re confident additional borrowers will take up the finance as the marketplace develops. This is about giving borrowers a new way to get the most out of clean energy, as well as cut their energy use and lower their carbon footprint.
“Together with RateSetter, we’re also looking forward to seeing more clean energy investors come into this innovative green loan marketplace.”
[Related: Liberty acquires P2P lender]
Charbel Kadib is a journalist on the mortgages titles at Momentum Media.
Before joining the team in 2017, Charbel held roles with public relations agency Fifty Acres, and the Department of Communications and the Arts.
Charbel graduated from the University of Notre Dame Australia with a Bachelor of Arts (Politics & Journalism).