Bank Australia Launches Loan for Home Electrification

The bank is offering a low-rate loan to help customers transition to solar and electric home systems.

Updated on Oct. 21, 2026 in Electric Vehicles

Bold vector editorial illustration featuring solar panels on a rooftop and a home battery unit, representing residential energy electrification. — Bank Australia has introduced a 7.49% personal loan to help residential customers fund home electrification upgrades like rooftop solar and battery storage. AI Illustration. Upload story photo >

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Is now a good time for you to take out a loan for home energy upgrades?

Bank Australia has introduced a new Clean Energy Personal Loan featuring a 7.49% variable rate with no establishment or ongoing fees. This initiative aims to assist residential borrowers in funding upgrades like rooftop solar, home batteries, and electric hot water systems.

Why it matters

Residential mortgages currently account for more than 90% of Bank Australia's carbon emissions, making home electrification a central strategy for its sustainability goals. The bank intends to cut gross emissions from its mortgage portfolio by 70% by 2035.

The new loan carries a variable rate of 7.49% with zero establishment or ongoing fees. Bank Australia, which holds over $20 billion in assets and serves 330,000 customers, aims to reduce portfolio emissions by 70% by 2035.

The players

Bank Australia

An Australian customer-owned bank that emerged from the 2025 merger with Qudos Mutual.

Reserve Bank of Australia

The nation's central bank responsible for monetary policy and setting the official cash rate.

The details

Borrowers can use the BOOM! Power Electrify Your Home tool to assess potential savings and emissions reductions for upgrades like induction cooktops and solar panels. This effort coincides with a broader national trend, following the installation of 507,000 batteries under the government's Cheaper Home Batteries Program.

July 1, 2025: Bank Australia merged with Qudos Mutual.
September 2026: The Reserve Bank of Australia raised the cash rate to 4.6%.
21 October 2026: The date of the announcement regarding the new loan program.
2035: The deadline for Bank Australia to meet its target of a 70% reduction in gross mortgage portfolio emissions.

Roadmap

This loan offering reflects a broader shift among financial institutions to actively incentivise green transitions as part of their environmental mandates. By targeting the high-emission residential mortgage sector, the bank is positioning itself to lead in sustainable consumer finance.

Customers can utilise the loan to finance efficiency upgrades without upfront costs or ongoing service fees. This reduces the financial barrier for households aiming to install solar systems or batteries, which are increasingly attractive amidst rising interest rates.

The takeaway

Homeowners interested in electrification should weigh the 7.49% loan rate against current market interest rates and their potential energy savings. Evaluating the total cost of ownership is essential before committing to major household energy upgrades.