The Clean Energy Finance Corporation (CEFC) has signed a $100 million finance deal with peer-to-peer lender RateSetter to deliver the benefits of the South Australian government’s Home Battery Scheme to householders and investors.
Under the arrangement, the CEFC has committed the money to finance loans where the upfront costs of the home battery system installations are not met by the South Australia government subsidies. The CEFC finance will be delivered through RateSetter’s new South Australia-specific renewable energy lending market.
At the same time, South Australian retail investors as well as institutional investors such as banks, credit unions and super funds can invest in the program.
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The agreement will mean RateSetter is the exclusive administrator of the government’s Home Battery Scheme.
Under the State Government’s Home Battery Scheme program, 40,000 South Australian households have access to up to $6000 in government subsidies to put toward the cost of the battery component of solar and battery installations. In addition, subject to credit approval, households will be provided with an option to finance the unsubsidised portion of the battery system and rooftop solar if required.
The scheme was created to encourage South Australians to install battery storage products in their homes to help reduce the cost of energy, improve the resilience of South Australia’s energy supply, and support the environment by lowering carbon emissions.
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Minister for Energy and Mining Dan van Holst Pellekaan said the Marshall Liberal Government’s home battery scheme puts South Australia way out in front on making batteries accessible for households, delivering cheaper and more reliable power for all.
“RateSetter’s plans to bring in even more investment from retail and institutional investors will play a vital role in reducing the upfront cost of batteries,” he said.
RateSetter and the CEFC have been working together since May 2017, when the CEFC made a $20 million commitment to kick-start RateSetter’s Green Loan Marketplace for borrowers looking to buy or install energy efficient and solar products.