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Green Loan With Commonwealth Bank

Recently Commonwealth Bank has announced the release of a “Green Loan” that can be used to purchase solar systems for residents across the country. This is obviously an extremely exciting development for those of us in the solar industry and it is also great news for people looking to make the change.

Seeing cornerstone financial institutions back solar is great news because it further solidifies the mainstream acceptance of renewable energy. While there are some eligibility requirements to be able to take advantage of this offer it is a great step forward in giving everyone access to solar power.

green loans commbank

Depending on what state you live in you might be eligible for a variety of solar incentives. Some of these incentives include low or no interest loans to help facilitate the installation of solar. We often encounter potential clients that are disgruntled that they don’t have access to the same subsidies as their friends in another state.

By introducing a nationwide alternative that is not bound to location it gives people another option worth considering. Let’s take a look at the details and eligibility requirements to get a better understanding as to how this offer may benefit you.

Commonwealth Bank Green Loan Details

The loan’s strongest feature is the fact it comes with no establishment fee and has no monthly service or early payment fees. The 0.99% PA 10 year fixed rate is an easy pill to swallow with the loan having a minimum amount of $5000 and a maximum of $20,000.

There is a caveat though as we previously mentioned.To be able to apply for this loan you must have an eligible home loan or investment home loan through CommBank. If you are in this position then you can use the Green Loan to purchase and install eligible products.

These product categories include solar panels, battery packs and solar hot water systems but only at the property the initial home loan is tied to. You won’t be able to switch or split the loan and you will not have access to an offset account. This means no redraws or features like top-ups.

Are You Eligible For The Green Loan?

In order to be able to take advantage of the Green Loan you need to be able to meet certain criteria. As we mentioned above you will need to be an existing CommBank home loan customer with the following requirements coming straight from the Green Loan page on their website:

  • Existing home loan balance of $150,000 or more (not including your available redraw balance);
  • The loan is secured against a single property and is not an apartment or commercial property;
  • The loan to value ratio of the existing home or investment home loan plus new CommBank Green Loan does not exceed 80%;
  • The installation address of the eligible small-scale renewables matches the address we have listed as security for your home loan or investment home loan.

While rules are not always fun they are a necessity and given the generous nature of the loan we can understand why CommBank does not just offer this to everyone regardless of having a home loan. They also have other caveats relating to this offer in the form of what products are eligible to be purchased.

green loans with commbank

Before we go through the product requirements it is a good time to recap. The CommBank Green Loan gives you a very low rate loan on a 10 year plan. There are $0 service and establishment fees with the flexibility to pay it off sooner if you wish. You can borrow between $5000 – $20,000 to cover both the purchase and installation of eligible solar products.

Eligible Products & Approved Retailers

Under the terms and conditions of the CommBank Green Loan you are able to cover the purchase and install of the following clean energy products:

  • Solar panels with a system size equal to or greater than 6 kilowatts (kW) (and solar inverter if applicable)
  • Battery packs with a system size equal to or greater than 5 kilowatts-hour (kWh)
  • Solar hot water system with a minimum system size equal to or greater than 250 litres
  • Heat pump hot water system with a system size equal to or greater than 250L
  • Electric vehicle charging station(s)

In order to ensure everything is carried out to Australian standards CommBank requires you to have the products purchased from and installed by a company approved by the Clean Energy Council. You can use their website to check approved retailers and of course Global Solar Solutions is one.

You would be hard pressed to find anyone in this industry not recommending you choose CEC approved retailers and installers in any situation so this is not surprising. An Approved Solar Retailer means that the company in question has made a commitment to responsible business practices within the solar industry.

approved retailer

The CommBank Green Loan Process

The first step in claiming a Green Loan is to contact the team responsible for the product on 1800 965 047 between 9am – 5pm (AEDT) and discuss your eligibility with them. They will go ahead and decide to conditionally approve your claim or not.

Once you are pre-approved you will then need to talk with an Approved Solar Retailer such as Global Solar Solutions to attain a quote. You then take the supplied quote and give it to CommBank for them to process. Once they let you know the loan is officially approved based on the given quote you can then give the go ahead for us to proceed.

Normally under the conditions of the Green Loan you are required to pay any deposit from your own savings. You will then be reimbursed once a final invoice is given. Global Solar Solutions is waiving deposits for any clients using the Green Loan product from CommBank to make the process as smooth as possible.

Once we have finished installing your new solar power system we will supply you with a final invoice for you to pass along to CommBank. They will process the invoice and pay us directly within 14 days according to their website. This process does not interfere with claiming STC’s under the Small-Scale Renewable Energy Scheme.

It’s Now Easier Than Ever To Go Green

We hope to see more financial institutions take up similar loan products in the near future. Renewable, clean energy and its benefits are something that should be championed and facilitating it’s adoption is key to a better future for everyone.

You can see a complete list of requirements and some very handy FAQ’s by visiting CommBank’s Green Loans page. They also offer a Green Loan guide in PDF format for you to download and peruse at your own leisure.

If you have any questions about solar, what potential packages might be suited to you and what our process entails then you can give us a call today on 1800 255 474. Our expert solar consultants are well versed with the Green Loan and any other state or national government incentives. You can also contact us online to have us get back to you via email with any information you might need.