Save money and make your home more energy efficient with a green loan

Optimising your home’s energy efficiency is not only great for the planet, it can be great for your wallet too. Small behavioural changes and energy-efficient appliances and technologies may contribute to a notable reduction on your home’s energy consumption. Here are our top tips on reducing your household’s carbon footprint, and how a green loan may help you access new energy-saving solutions.

Energy-saving solutions to save you money

Many households don’t know much about the energy efficiency of their heating, cooling, hot water and lighting. Generally, we work with what’s already installed when we move in. But when it comes time to replace or upgrade these systems, choosing a more energy efficient option can help reduce your carbon footprint and lower your energy bills.

Heating and cooling systems are responsible for over 40 per cent of a household’s total energy usage. Hot water systems make up over a quarter of the average household’s energy consumption. Opting for energy efficient heating, cooling and hot water systems is a great place to start. Here are some popular considerations.

Reverse cycle heating and cooling

These types of units offer dual functionality. They heat your home in winter and cool it in the summer and are much more energy efficient than conventional heating and cooling systems. Rather than creating new heat, the system absorbs existing heat from the outside air. In the summer, the system efficiently captures heat inside the home and removes it. This is substantially less energy intensive than a portable air conditioner.

Solar heating, cooling and hot water systems

Solar energy collects thermal energy from the sun to power heating, cooling and hot water functionality in the home. Panels are generally placed on the roof of your home at a specific angle and orientation to best capture the sun’s energy. This energy is then used to provide electricity for heating and cooling systems, or to heat water.

These systems tend to have an electric or gas backup system for when there isn’t sufficient sunlight to generate the energy you need.

Heat pump hot water systems

A heat pump hot water system extracts heat from the surrounding air and uses it to heat hot water. These systems typically use around 60 to 75% less electricity than a conventional electric hot water system, but require consideration for the climate they’re used in. Heat pump hot water systems are better suited to warmer climates.

Electric vehicles (EV)

Electric vehicles are becoming more popular in Australia. Providing a more energy-efficient way to get around, EVs may be fully electric or a hybrid of both fuel and electricity power. The use of electric power reduces your fuel emissions and saves on fuel costs.

Fully electric cars need to be charged, either at a home charging point or at a charging station. Charging stations are even more impactful when paired with renewable electricity. For example, electricity from solar panels. Some hybrid vehicles, however, can charge themselves while driving and running on fuel power. The Australian Government’s charging calculator allows you to estimate charging costs for an EV.

Funding your energy efficient upgrades

While greener energy can save you money over the long term, upfront costs can be high. Loans specifically designed to help you fund energy efficient projects are available to help you manage cash flow. These are a type of personal loan known as a green loan. They are suitable for things like solar panels, solar hot water, electric vehicle charging stations and energy efficient heating and cooling systems.

Types of green loans

Bendigo Bank offers two types of green loans: unsecured and secured.

• Unsecured green loans are not secured against the value of what you’re purchasing, and so may carry a slightly higher interest rate. These are most suited to heating, cooling and hot water upgrades.
• Secured green loans are secured against the asset you’re purchasing. These are generally suitable for electric and hybrid vehicles, a bit like a traditional car loan.

Government support to fund your upgrades

Australian state and territory governments offer grants, concessions, rebates and assistance for certain household energy upgrades. Use the energy.gov.au search tool to find out what you might be eligible for.