CEFC and Lannock Strata Finance Partner to boost solar adoption in strata properties
A new partnership between the Clean Energy Finance Corporation and Lannock Strata Finance aims to break down barriers and increase solar adoption across NSW strata properties.
In a collaborative effort, the Clean Energy Finance Corporation (CEFC) has entered into a memorandum of understanding (MOU) with Lannock Strata Finance (Lannock) to create a green strata product that will make solar power more accessible for apartment owners and renters.
The announcement follows the Australian government’s $1 billion commitment to CEFC, which will accelerate sustainability upgrades in existing homes by offering discounted financing, through a diverse coalition of co-financiers.
The initiative comes as around 11 million residences across the country contribute more than 10 per cent of total emissions and account for more than 25 per cent of electricity usage.
Energy consultancy Wattblock’s CEO, Brent Clark, revealed that a mere 3.3 per cent of the 49,000 apartment buildings in Greater Sydney have installed solar power systems.
The figure underscores the urgent need for enhanced access to solar energy solutions in the NSW region.
“The number one barrier for strata buildings is this: roughly half of all apartments in Australia are let to tenants, in other words, they’re owned by investors,” Clark said.
“Owner-investors just haven’t been on board because they’re not getting a direct benefit from the solar.”
The CEFC and Lannock solar initiative, supported by the Household Energy Upgrades Fund (HEUF), is designed to reduce borrowing costs for owners corporations looking to install rooftop solar systems in residential strata buildings.
Under the agreement, the CEFC will provide funding at a reduced borrowing rate, enabling owners corporations to finance solar upgrades more affordably.
The CEFC support will leverage solar rebates available through multiple state government initiatives, such as the NSW Solar for Apartment Residents (SoAR) program.
The SoAR program, which is supported by the Commonwealth’s Community Solar Banks, offers financial assistance, granting rebates of up to $150,000 for apartment dwellers and owners corporations to transition to solar energy.
CEFC’s chief executive officer, Ian Learmonth, said extending renewable energy benefits to apartment residents was important.
“Delivering this green strata loan product would help CEFC finance reach renters and apartment owners – a section of the community which has previously struggled to share in the benefits of renewable energy generation and reduce household costs,” Learmonth said.
“Reducing the cost of finance to install solar will overcome a significant barrier to the uptake of solar across Australia’s many apartment buildings, enabling renters and owner-occupiers to lower their carbon emissions and energy use.”
Lannock previously collaborated with the NSW and ACT governments on major initiatives, including the NSW Project Remediate program and the ACT Private Buildings cladding scheme to provide financial assistance to residential buildings for safety and sustainability upgrades.
Recently, CEFC reported receiving investment proposals exceeding $850 million in green loans, of which they have allocated $345 million through the HUEF.
The CEFC is actively working with multiple lenders to develop innovative financing products within the HUEF framework to promote the adoption of clean energy technologies and advance energy efficiency within the property sector.