Household energy fund tops AUD $1 billion in loans
Wed, 5th Aug 2026 (Today)
The CEFC Household Energy Upgrades Fund has made more than AUD $1 billion in low-interest loans available to Australian households over the past two years.
The finance has supported home upgrades including solar panels, batteries, insulation, window improvements and electric appliances such as heat pumps, induction cooktops, air conditioners and electric vehicle chargers. According to the Clean Energy Finance Corporation, households using the fund are cutting energy bills by up to 80%.
Total annual household savings linked to HEUF-backed finance are estimated at up to AUD $16.4 million. Customers who took out loans under the co-financing program are estimated to save about AUD $1,700 to AUD $2,300 a year on average on electricity bills, as well as around AUD $570 on average in loan interest in the first year.
The CEFC has committed more than AUD $500 million through the fund to the end of June 2026, with seven lenders and co-financiers contributing a similar amount. That has lifted the total pool of available low-interest consumer lending to more than AUD $1 billion.
Lenders and co-financiers participating in the program include Brighte, Commonwealth Bank, ING, Plenti, Plico and Westpac. The CEFC does not lend directly to individual borrowers, but provides finance through participating institutions.
Household savings
One borrower, Justin, said his family had seen direct financial benefits after installing a battery at their home in Dora Creek, where he lives with his partner, Janet, and their three teenage and young adult children.
The family estimates the battery is saving them around AUD $5,000 a year and expects it to pay for itself within three to four years. They used finance through the scheme to complete the installation earlier this year.
"The benefits that we've experienced from having the battery in the home definitely comes down to saving money. The battery is actually paying for itself," said Justin, HEUF loan customer, CEFC Household Energy Upgrades Fund.
The CEFC said electrification was also reducing other household costs. Households that disconnect from gas can typically save more than AUD $200 a year in ongoing charges, and in some cases more than AUD $600, depending on location.
Those savings come on top of lower energy use from more efficient electric appliances. The program is intended to address the upfront cost barrier that often delays home energy upgrades.
Access to finance
The fund is structured as a co-financing program to widen access to discounted lending for households seeking to improve energy efficiency or add on-site energy systems. By lowering borrowing costs, it aims to make upgrades more affordable when households are deciding whether to proceed.
Grace Tam, Head of Consumer Finance at the CEFC, said the latest figures showed households were using the scheme to manage living costs as well as energy use.
"The Household Energy Upgrades Fund is delivering immediate cost-of-living relief while helping households future-proof their energy use. By reducing upfront costs through our co-financiers, we're enabling more Australians to access proven technologies that deliver lasting savings and greater energy independence.
"Australians are leading the charge in the energy transition, in their kitchens, living rooms and garages, by changing their energy use in their homes. This change is occurring nationally and at scale, benefiting individual households while creating more resilience in local grids. With energy costs remaining volatile, the program's uptake points to a clear shift in how households are managing energy and costs," Tam said.
The CEFC also said some customers whose loans include access to a virtual power plant can earn extra income by linking their household energy systems into a shared network that supports the grid during periods of peak demand.
That points to a broader role for home energy assets such as batteries and rooftop solar beyond cutting bills for individual users. For lenders, the scale of the uptake suggests sustained demand for consumer finance tied to energy savings and electrification.
With more than AUD $1 billion now available through the program, the HEUF has become a sizeable channel for household energy lending in Australia, spanning both cost-saving upgrades and a shift away from gas. Estimated annual savings of up to AUD $16.4 million suggest the impact is already being felt across thousands of homes.