Australian farmers and Agribusiness owners are poised to reduce energy costs and further transform their energy use following today’s announcement that NAB and the Clean Energy Finance Corporation (CEFC) will provide an additional $180 million in finance for investments in energy efficient and renewable energy equipment.

The new finance extends the NAB’s successful Energy Efficient Bonus program to $300 million. The program provides NAB customers with a 0.7 per cent discount on its standard equipment finance rate for loans for eligible clean energy investments.

The latest round of finance will see NAB offer businesses of all sizes discounted equipment finance for eligible clean energy assets that cut energy use or generate renewable energy. This includes vehicles, efficient irrigation systems, solar PV, building upgrades, lighting upgrades, processing line improvements and refrigeration.

Of the initial $120 million in CEFC finance, 87% was used by NAB Agribusiness and rural customers. Among them were Chris Georgopoulos and Jimmy Kalafatis from GV Storage in Shepparton, Victoria, who installed roof-top solar panels which generate enough power to meet more than 65% of their energy needs.

“As second generation farmers growing apples and pears and currently processing 66,000 bins of fruit per year, we require a massive amount of power, so we investigated solar,” Mr Georgopoulos said.

“NAB backed us with the energy efficiency loan which has reduced our energy costs, made us more sustainable, particularly with some beautiful days here in Shepparton.”

Khan Horne, General Manager NAB Agribusiness, welcomed the program’s second round of financing and said hundreds of agribusinesses have already transitioned to more sustainable business models.

“After surveying 5,000 of our farmers for two consecutive years, 85% told us they saw energy costs as a significant business risk. So we’re helping our customers transition to more sustainable business models and, particularly for intensive agriculture, significantly reducing their energy and water bills,” Mr Horne said.

CEFC Head of Portfolio Management Paul Greenop said the Energy Efficient Bonus program had already provided finance for more than 1000 assets nationwide.

“We are pleased to provide further support to this highly successful program, which is making it easier for businesses to tap into the benefits of energy efficient, renewable energy and low emissions technologies,” Mr Greenop said.

“Accelerating the uptake of these technologies helps businesses across the country reduce their grid energy costs as well as lower their carbon emissions. At the same time, investments in new clean energy technologies can boost productivity through more efficient operating practices.”

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