Green loans in Australia, explained
Green loans are discounted finance for upgrades that cut your home's energy use — solar, batteries, EV chargers, hot water and efficiency work. Here's how they price, what they fund and when they beat the alternatives.
Apply nowWhat green loans fund
Rooftop solar
Panels, inverter and installation — see solar panel finance.
Home batteries
Storage, hybrid inverters and backup circuits.
EV chargers
Wall-mounted home charging, installed.
Heat pump hot water
Replacing electric or gas storage systems.
Insulation & glazing
Ceiling insulation, draught sealing, double glazing.
Whole-home retrofit
Several upgrades bundled under one rate.
Secured vs unsecured green loans
A secured green loan is backed by the installed equipment or another asset, which lowers the lender's risk and your rate. An unsecured green loan is quicker to settle and suits smaller amounts, but is priced higher. For most solar and battery projects above roughly $10,000, secured wins on total cost.
Green loan vs the alternatives
| Option | Typical term | Best when |
|---|---|---|
| Green loan | 3–10 years | You want a low rate matched to the life of the upgrade. |
| Mortgage top-up | Up to 30 years | You have equity and will make extra repayments to clear it early. |
| Standard personal loan | 1–7 years | The purchase isn't eligible for a green product. |
| Interest-free / BNPL | 6 months–5 years | Small amounts you can clear inside the interest-free window. |
Where to go next
- Solar panel finance — costs, options and how to apply.
- Home battery finance — sizing the loan for storage.
- Rebates guide — claim incentives before you borrow.
- Repayment calculator — see monthly cost by amount and term.
Green loan FAQs
What is a green loan?
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A green loan is credit that can only be used for approved energy-efficient or clean-energy purchases, such as rooftop solar, home batteries, EV chargers, heat pump hot water, insulation or double glazing. Because the money is tied to an asset that lowers running costs, lenders usually price green loans below their standard personal loan rates.
Are green loans cheaper than personal loans?
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Generally yes. Dedicated green products are typically a couple of percentage points below an equivalent unsecured personal loan, and secured green loans are cheaper again. The trade-off is that funds must go to eligible upgrades and are often paid straight to the installer.
Is a green loan better than adding the cost to my mortgage?
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A mortgage top-up usually has the lower interest rate, but spreading a 10-year upgrade over 25 years of home loan repayments can cost more in total interest and reduces your equity. A green loan keeps the debt matched to the life of the asset. Compare total cost, not just the headline rate.
Who can apply for a green loan?
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Typically Australian citizens or permanent residents aged 18 or over, in stable employment, with the upgrade installed at a property you own or occupy. Lenders assess income, existing commitments and credit history as usual.
How long do green loans run for?
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Commonly three to ten years. Shorter terms cost less interest overall; longer terms lower the monthly repayment.