CEFC commits $150m to help small business cut energy costs

The Clean Energy Finance Corporation (CEFC) has committed $150 million to expand access to discounted finance for ANZ’s small and medium enterprise (SME) customers.

The CEFC and ANZ will each annually contribute 0.4% p.a. towards a total discount of 0.8% for assets including electric vehicles, rooftop solar, batteries, energy-efficient technology and recycling equipment, helping businesses reduce operating costs while improving energy performance.

The discounted rate can reduce total repayment costs and improve cash flow over the life of the asset, supporting investment decisions that may otherwise be deferred.

The commitment builds on the successful CEFC co-financing program with ANZ, which has helped bring lower-cost clean energy finance to small to medium businesses at scale and has supported more than 1600 Australian businesses with over $444 million in discounted asset finance.

In the last financial year, more than $90 million in finance was provided to customers through the program.

“SMEs are looking for practical ways to manage rising costs while maintaining productivity. This program helps bring forward investment in equipment that can reduce energy use and improve efficiency, while lowering financing costs at a time when access to affordable capital matters,” said CEFC Executive Director Richard Lovell.

ANZ MD Product and Specialist Sales, Business & Private Bank, John Campbell said, “Australian businesses are constantly looking for ways to improve productivity and manage costs. Whether it’s installing solar panels, upgrading equipment or transitioning a vehicle fleet, these investments can deliver meaningful savings over time, but the upfront cost can be a barrier. By making finance more affordable, we’re helping businesses invest with confidence in assets that can strengthen their operations today while positioning them for future growth.

“Over the past nine years, our partnership with the CEFC has helped businesses invest in the equipment and technology they need to grow and adapt. This additional funding will allow even more Australian businesses to access the assets they need to remain competitive.”

This investment takes the total cumulative CEFC commitment to the ANZ clean energy finance program to $600 million. It has financed the installation of clean energy technologies across the economy, including more than $105 million in the agriculture sector, $72 million in manufacturing, $37 million in retail and wholesaling and $16 million in mining.

More than $3.2 billion of CEFC finance has been committed to help commercial borrowers access discounted finance to invest in renewable energy and energy efficiency.

Image credit: iStock.com/WANAN YOSSINGKUM