RateSetter and the Australian Government’s Clean Energy Finance Corporation (CEFC) have announced an 18 month extension of their innovative green loan marketplace, which is bringing clean energy borrowers and investors together.
Launched in May 2017, the RateSetter green loan marketplace is the CEFC’s first investment in a peer-to-peer lending platform. Seeded with $20 million from the CEFC, the marketplace provides affordable finance options to Australian home owners and businesses purchasing approved energy efficient products.
In the first year alone, over 1000 households and small businesses have chosen to finance energy efficient and renewable energy products through RateSetter.
These loans have helped finance a wide range of green product purchases, including solar panels and battery systems, energy efficient lighting and energy efficient heating and cooling systems.
Solar systems financed over the first 12 months of the program have resulted in a reduction of over 2,250 tonnes of CO2 emissions annually.
Retail and other institutional investors have also shown strong interest in the green loan marketplace. In addition to the CEFC, over 200 retail investors have financed green loans, earning up to 6.5% per annum – tapping into strong investor demand for eco-investments with good returns.
Daniel Foggo, CEO of RateSetter, said its 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," he said.
"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.”
CEFC Debt Markets lead Richard Lovell is confident that additional borrowers will take up finance as the marketplace develops.
"We have already seen solid lending volumes," he said.
"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.”
The peer-to-peer online lending platform allows investors to nominate the amount they wish to invest and the interest rate they are prepared to accept. This offer is then matched to approved borrowers.