Democratizing access to net-zero homeownership
We pay for our partner lenders' customers to reduce their scope 1+2 property emissions
The end customer doesn't pay any extra, benefitting from a healthier, energy efficient, and higher value property
Lenders achieve climate agenda commitments without comprising margin
Accelerating the transition to net-zero emissions
The average energy performance of Australia's 8 million dwellings is just 1.7 stars out of a possible 10 stars.
Goal to net-zero emissions
Financial institutions face the challenge of meeting their net-zero banking alliance commitments while balancing customer engagement and voluntary expenditure for climate initiatives. With Australian housing contributing significantly to emissions, retrofitting established dwellings is crucial but expensive.
Prospective and existing loan customers hesitate to voluntarily spend on property emission reduction initiatives amidst a cost of living crisis, requiring a solution that offers financial support and compelling incentives.
Green equity unlock product
Provides access to an ongoing financial rebate for existing property owners, which funds building enhancements, aimed at reducing scope 1 & 2 emissions, such as rooftop solar systems, batteries, thermal improvements, and inefficient appliance replacements.
Steps to the goal
Case Study
Lets imagine a typical Australian house:
A contemporary 4BR home in Hornsby Heights, NSW
- Built in the 2000's in original condition,
- Located in National Park in Bushfire Zone [BAL - 40],
- Climate Zone 5 (warm-temperate),
- NaTHERS 2-star rating,
- No existing solar panels or battery,
- Limited insulation in roof,
- No insulation in walls or subfloor.
Ownership Scenario
- Currently owner-occupied for 6 years
- Purchase price: $1.65m with deposit of $800k
- Loan balance remaining: $859k
- Current valuation: $2.33m
- Equity Available: $1.00m
Our Leg Up Green Rebate
- Equity Investment of $1.00m
- Fixed annual return of: 2.5% p.a.
Impact for Bank
- More loyal customers
- Reduce emissions via market leading green / net-zero home loan
- Supported by audit and ongoing reporting
Improvements with budget of $125,000 over 5 years
A portion of the rebate would be allocated towards auditing the property and drafting a highest impact, prioritised activity report to consider. Below is an example:
Greener Solutions
Year 1 Budget
| 6.6 kWh PV: | $4,940 |
| 14kWh Battery: | $13,000 |
| Electric Cooktop and Oven: | $7,060 |
| Our Leg Up Rebate: | -$25,000 |
| Total Cost to Owner: | $0 |
Time-shifting peak energy
14kWh Battery effectively time-shifts the PV generated energy through to the peak evening period.
Electric Induction Cooktop + Upgraded Extractor
Replacing gas cooktop with electric equivalent. Often the range hood would need to be upgraded with induction. Alternatively it can be combined with a downdraft model.
Induction / Downdraft Cooktop: $5,000
Electric Pyrolytic Oven
Replacing gas oven with electric equivalent. Pyrolytic Ovens represent the best of available technology in electric ovens.
60cm Pyrolytic Oven: $2,060
Reduced Payback Period
PV + Battery payback period is reduced to 0 years, with an additional $2.7k p.a. cashflow saved.
Estimated Savings on Energy Bills
PV + battery saves each year:
| (PV): | $1,566 |
| (feed-in): | $94 |
| (battery): | $1,082 |
| Total Annual Energy Savings: | $2,742 |
Year 2 Budget
| Electric Heating/Cooling: | $9,500 |
| Heat Pump Hot Water: | $5,000 |
| Full House Re-wiring | |
| with LED Lighting : | $7,500 |
| EV Charger: | $3,000 |
| Our Leg Up Rebate: | -$25,000 |
| Total Cost to Owner: | $0 |
Reverse Cycle Heating / Cooling
Additional improvements in Year 2 include. Replacing Gas Ducted Central Heating with Electric Reverse Cycle Heating / Cooling.
Heat Pump Hot Water
Additional improvements in Year 2 include. Replacing Gas Hot water with Heat Pump Hot Water.
Full House Re-wiring with LED Energy Efficient Lighting
Where a house has not been wired for LED lighting, it would warrant a full house re-wiring with appropriate safety upgrades.
100% Green Energy Rebate
Each year, if the owner opts in to 100% Green Energy they can claim a rebate for the cost per kWh drawn from the grid.
As the grid gets greener, this feature will be required less.
Further Savings on Energy Bills
| Disconnect Gas Plan: | $1,200 |
| Hot Water Heating Savings: | $225 |
| Heating/cooling Savings: | $1,280 |
| LED Lighting Savings: | $628 |
| PV+Battery Savings (above): | $2,742 |
| Total Annual Energy Savings: | $6,075 |
Years 3 - 5: Thermal Efficiency Upgrade Plans
Reduce heating and cooling energy loads by up to 90% with an energy retrofit plan: e.g. insulated glazing, insulated building, airtightness system, vapour membrane, heat recovery ventilation, removal of thermal bridges.
Total Rebate to Owner ($25k p.a.) $75k
Airtightness System
Airtightness systems help prevent moisture from entering the structure of the building from the inside while facilitating the drying potential of the building elements, thus making building elements durable for the long term. They are also the best way to ensure optimum energy efficiency.
Heat Recovery Ventilation Units
A heat recovery system helps the air circulate within a building by replacing it with colder air that is warmed by the ventilation system. It can also work in summer mode to bypass the heating of incoming air.
Maximized Savings on Energy Bills
| Additional heating/cooling save: | $2,196 |
| Existing Savings: | $6,075 |
| Total Annual Energy Savings: | $8,271 |
