Big boost for SA home battery scheme

Peer-to-peer lender RateSetter has signed a $100 million funding deal with the Clean Energy Finance Corporation to deliver the benefits of the South Australian Government’s Home Battery Scheme to South Australian householders and investors.

Under the State scheme 40,000 South Australian households have access to up to $6000 in government subsidies to put toward the cost of the battery component of solar and battery installations. In addition, subject to credit approval, households will be provided with an option to finance the unsubsidised portion of the battery system and rooftop solar if required.

The CEFC has now committed up to $100 million to finance loans where the upfront costs of the home battery system installations are not met by South Australia’s government subsidies, delivering the finance through RateSetter’s new South Australia-specific renewable energy lending market.

RateSetter will enable South Australian retail investors and also institutional investors such as banks, credit unions and superannuation funds to invest in the program through the new lending market.

The 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.

The Marshall Liberal Government welcomed the involvement of RateSetter and the CEFC in the home battery storage scheme that encourages South Australians to install battery storage products in their homes to help reduce the cost of energy, improve the resilience of South Australia’s energy supply, and support the environment by lowering carbon emissions.

“The Marshall Government’s home battery scheme puts South Australia way out in front on making batteries accessible for households, delivering cheaper and more reliable power for all,” said energy minister Dan van Holst Pellekaan.

“RateSetter’s plans to bring in even more investment from retail and institutional investors will play a vital role in reducing the upfront cost of batteries.”

RateSetter CEO Daniel Foggo says the program is great news for SA households, helping to ease the burden of high energy bills and overcome upfront financial barriers that households often faced when accessing the installation of renewable energy products.

“RateSetter wants to make clean energy products more accessible and cost-effective for Australians,” Foggo said. “The Government of South Australia’s subsidy, CEFC’s cost-competitive finance and RateSetter’s streamlined customer offering will together provide a simple and fast way for homeowners to reduce their power bills and contribute to a reduced carbon footprint.”

RateSetter has facilitated more than $370 million in loans to over 27,000 borrowers, and has relationships with hundreds of renewable energy installers nationally, including most of Australia’s largest home solar and battery original equipment manufacturers and retailers.