RateSetter signs $100 million South Australian Home Battery Scheme deal
Today we are delighted to announce we have signed a $100 million funding deal with the Federal Government’s Clean Energy Finance Corporation (CEFC) to deliver the benefits of the South Australian Government’s Home Battery Scheme – one of the world’s most ambitious Government-funded home battery schemes – to South Australian households.
RateSetter will be the finance provider for the South Australian Home Battery Scheme, with a commitment of $100 million from the CEFC. This is to finance loans where the upfront costs of the home battery system installations are not met by the program’s subsidies. The CEFC finance will be delivered through RateSetter’s new South Australia-specific renewable energy lending market.
Our investors – both retail and institutional – can also invest in our new SA Renewable Energy lending market, providing a simple way to invest directly in loans supporting this program, while earning attractive, stable returns. Investors can start investing from their RateSetter account, under the Lend money tab.
This funding agreement between RateSetter and the CEFC will operate in conjunction with an agreement between RateSetter and the Government of South Australia, in which RateSetter will be the exclusive administrator of the Government’s $100 million Home Battery Scheme, providing subsidies for 40,000 South Australian households. See below for more details on the Home Battery Scheme program.
We are very excited about this new agreement and the value it brings for South Australian households. It also shows that the Government of South Australia is embracing new ways of working with businesses that can provide technology-enabled solutions to help improve the lives of Australians.
The decision to select RateSetter as both the exclusive administrator of the scheme’s subsidies and the finance provider reflects our unique position in the market. We have been working with the CEFC since May 2017, when the CEFC made a $20 million commitment to kick-start RateSetter’s Renewable Energy Loan Marketplace for borrowers looking to buy or install energy-efficient and solar products.
Off the back of this commitment, we now have funding relationships with hundreds of renewable energy installers nationally, including most of Australia’s largest home solar and battery original equipment manufacturers and retailers. Renewable energy loans are one of our fastest-growing business areas, and this agreement firmly positions RateSetter as a market leader for renewable energy finance.
We look forward to progressing a number of similar opportunities with the CEFC and other state governments, so we can continue to open up simple, fast and affordable finance for renewable energy products and improve energy security for all Australians.
About the Home Battery Scheme
The South Australian Government is delivering on its commitment to provide more affordable, reliable, secure energy for all South Australians.
From October this year, 40,000 South Australian households will have access to $100 million in State Government subsidies and $100 million in loans to pay for the installation of home battery systems.
The subsidy will be available to all South Australians, however, Energy Concession Holders will be able to access a higher subsidy, ensuring low-income households are supported to access the Scheme.
While the subsidy will be applied to the battery only, households will be able to apply for finance made available through the Commonwealth Government’s Clean Energy Finance Corporation to purchase new or additional solar panels as well as the battery system.
The subsidy will be scaled in line with the size of the home battery system being installed, calculated on the kilowatt-hour capacity of the battery.
Home Battery Scheme subsidy levels
|All other households||Energy concession holder|
|$500.00 per kilowatt hour (kWh)||$600.00 per kilowatt hour (kWh)|
While the subsidy will vary depending on the size of the battery, the subsidy will be capped at a maximum of $6,000 per battery installed.
The Scheme will directly reduce electricity costs for the 40,000 households that purchase a home battery system. In addition, the installation of these systems will reduce demand on the network (especially at peak periods) and in turn lower prices for all South Australians.
A dedicated website will be available in October to assist homeowners consider their suitability for a home battery system, choose between approved products and system providers, access the subsidy and apply for finance if required.
Check out the Department of Energy and Mining website for more information.
This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of RateSetter as at the date of publication and may later change without notice.