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Broker clients can now access discounts on standard finance rates to purchase green assets in a new line from the non-bank.
Auto and equipment finance lender Metro has launched a new green lending program MetroEco that rewards consumers and small- to medium-sized (SME) businesses that opt for ‘green’ assets such as electric vehicles (EVs), solar panels, and batteries with discounted rates.
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As part of the program, the non-bank auto and equipment finance lender will offer borrowers interest discounts on loans for eligible EVs, energy-efficient equipment, and battery technology.
The new line has been formed in tandem with the government-owned ‘green’ bank, the Clean Energy Finance Corporation (CEFC), which will provide a $50 million investment towards the program.
The new line will use CEFC finance to offer customers a 0.5 per cent discount on Metro’s standard finance rate to purchase. Metro will then match this with an additional 0.5 per cent discount.
The total 1 per cent interest discount will apply to new battery electric vehicles and plug-in hybrid electric vehicles on loans of up to $90,000. Borrowers can bundle purchases into a single loan to get the best discount possible, according to the lender.
MetroEco marks the first time the non-bank lender will be financing products such as batteries, solar, and electric vehicle charging stations.
Farmers and other small businesses will also be able to access the discounted finance for more energy-efficient farm and building machinery such as tractors, harvesters, earthmovers and cranes.
CEO Phillip Crossman claimed the line would be one of the most competitive offerings in the green lending space.
“Metro is committed to providing financial incentives to borrowers looking to purchase not only electric vehicles but batteries, solar equipment and charging stations,” Crossman said.
“There will be significant growth in the green lending sector through this kind of government support, which empowers businesses and individuals to invest in green technologies.”
“Our MetroEco initiative empowers Australian small-to-medium businesses and consumers to embrace green technologies and ultimately supports Australia’s transition to a net-zero economy,” Crossman said.
CEFC CEO Ian Learmonth said the program underscores the organisation’s commitment to accelerating the adoption of green assets in Australia.
“CEFC finance is incentivising businesses and individuals to choose technologies that support Australia’s transition to a low-carbon economy,” Learmonth said.
“We are keen to see the concept adopted broadly across the business community.”
Federal ministers also welcomed the new discounted loan offering, with the Minister for Climate Change and Energy, Chris Bowen MP, stating it would "help Australian businesses bring down their operating costs".
“Clean technologies like EVs, solar, batteries and electric machinery are a great way for businesses to save on energy bills and decarbonise,” he said.
Similarly, the Assistant Minister for Climate Change and Energy, Senator Jenny McAllister, said: “The discounted loans would mean savings on energy bills and the cost of financing.
“From farmers to local grocers, the Albanese Government is helping take pressure off small businesses bills. Lower-cost financing for solar and electric machinery will save small businesses on energy bills and loan repayments.
“We want to help small businesses across industries and across the country make every watt count. These lower cost energy performance upgrades mean more control over energy use and emissions, especially in hard-to-abate sectors.”
The CEFC has been seeking to increase the flow of finance into the clean energy sector since its establishment in 2012. In recent years, the organisation has partnered with non-bank lenders such as Firstmac and MONEYME to provide discounted loans on EVs.
[Related: Metro appoints CIO]
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