The big four bank announced on Monday it will be launching a Green Loan for existing home loan customers to purchase renewable technology for their homes.
The Green Loan allows eligible CBA customers to borrow up to $20,000 on a fixed rate of 0.99%.
"As part of our commitment to the responsible global transition to net zero emissions by 2050, we're supporting our customers access renewable energy through sustainable housing solutions," said CBA's Group Executive Angus Sullivan.
"For most customers, they will see their energy bill drop by over $500 per year if they switch to solar which will offset total repayments of the loan in the long-term.
"As Australia's largest lender, we want to help as many customers as possible make their homes more sustainable."
CBA customers with an eligible owner occupier home loan or investment home loan can use the Green Loan to purchase and install eligible small-scale renewable technology such as solar panels (and inverters if applicable), battery packs and electric vehicle charging stations at the property used to secure their existing home loan.
The loan can be repaid over 10 years with no set up, monthly service or early repayment charges.
See also: Bank Australia partners with CEFC to launch first 'green' home loan with rock bottom rates
Eligible small-scale renewables must be installed by a Clean Energy Council accredited installer.
The Green Loan will kick off with a pilot in February with a national rollout scheduled for May. Customers eligible to participate in the pilot will receive an invitation from CBA to apply for the loan, but customers can also register their interest online.
Mr Sullivan said the bank has a role to play in encouraging households to lower their emissions.
"We have a responsibility to meet the current needs of our customers and the community while operating sustainable for future generations, and our new CommBank Green Loan will make financing more accessible."
According to the Clean Energy Council, over 2.7 million Australians have installed solar panels on their homes.
See also: Rising energy costs a major concern for 96% of Australian households
"It's a great way to reduce your power bills and reduce your household's carbon footprint," Clean Energy Council's Chief Executive, Kane Thornton said.
"By choosing a Clean Energy Council Approved Solar Retailer, you will be working with someone who has signed on to the Solar Retailer Code of Conduct and uses designers and installers who are accredited by the Clean Energy Council."
Photo by Science in HD on Unsplash
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