Bank Australia funds solar, batteries, and electric upgrades outside the home loan
Bank Australia has launched a Clean Energy Personal Loan to fund all-electric and energy-efficient home upgrades. The loan carries a variable rate of 7.49% with no establishment or ongoing fees. Existing customers and newcomers can both apply.
The move targets the bank’s biggest source of emissions. According to Bank Australia’s 2026 Climate action strategy, residential mortgages account for more than 90% of its reported emissions. The customer-owned bank aims to cut gross emissions from that portfolio by 70% by 2035, against a 2026 baseline.
What the loan funds and why it matters for brokers
Eligible upgrades include rooftop solar, household batteries, induction cooktops, and electric hot water systems. Eligibility, lending criteria, and terms and conditions apply, and the rate may change.
Because the loan sits independently of a home loan, borrowers can fund a solar or battery install without altering an existing mortgage structure. That option arrives as borrowing costs climb. The Reserve Bank (RBA) lifted the cash rate to 4.6% in September, its fourth increase this year and the highest level since November 2011.
Federal subsidies are already lifting battery demand. More than 507,000 batteries have been installed under the Cheaper Home Batteries Program, administered by the Clean Energy Regulator, which discounts solar-connected systems by around 30%, according to figures reported by Energy Storage News.
Borrower intentions point the same way. Great Southern Bank’s No Place Like Home report found battery storage is the top planned upgrade, with 30% of households intending to install a system within five years. That lender has also seen its green lending portfolio double over the past 12 months.
Part of a wider green lending push
The personal loan joins Bank Australia’s award-winning Clean Energy Home Loan and its Electric Vehicle Loan. The Clean Energy Home Loan rewards customers for building, buying, or renovating energy-efficient, all-electric homes. The bank merged with Qudos Mutual on 1 July 2025 and reports almost 330,000 customers and more than $20 billion in assets.
Bank Australia chief marketing officer Kevin Ramsdale (pictured) said climate change was a top concern for the bank’s customers.
“However, making sustainable upgrades at home isn’t always easy,” Ramsdale said.
Energy assessment and expert support
Eligible customers can also use BOOM! Power’s Electrify Your Home tool. It draws on household energy bill data to estimate the savings and emissions reductions from replacing gas appliances and can match households with nearby installers. The bank said results will vary by household. A new, free Energy Concierge service adds the option of a 15-minute video call with a qualified energy expert.
“Getting off gas is one of the best things you can do for your home, but knowing where to start can be overwhelming,” BOOM! Power chief executive Alex Houlston said.
The tool is free for eligible customers in Victoria, New South Wales, Queensland, Tasmania, and the Australian Capital Territory. It is also available to those near major regional cities in South Australia and Western Australia. Using BOOM! Power is optional for loan applicants.
