If you’re a small business in construction, transport or farming you’re probably already considering switching to electric vehicles next time you’re upgrading your fleet or equipment to save on high fuel costs and reap the benefits of clean energy.
But if you need an extra incentive, Metro Finance offers a full percentage point discount on finance thanks to an investment from the Clean Energy Finance Corporation, which splits the discount offer evenly with Metro.
The Metro Eco offer kicked off in June, and it’s already written close to $150 million in business.
Chief financial officer Mark Donovan says most clients use the finance to upgrade their transport trucks, light commercial, transport and heavy equipment such as excavators and bobcats that currently run on petrol or diesel.
The thinking from the CEFC is that these are heavily polluting items with about 90 per cent causing greenhouse gas emissions. The flip side is this also presents a great opportunity to save on GHGs and Scope 3 emissions.
Jessica Clarke, Metro’s eco sales manager, says the big incentive, though, is, quite frankly, the cost savings.
With fixed interest rates of 6.9 per cent, the 1 per cent discount is bound to appeal.
“We also look to incentivise customers,” Jessica says. “So that if they opt for EVs or solar, is there an opportunity that batteries can offer?”
Solar investments by clients who tend to have turnovers of less than $1 million tend to range from $30,000 to $50,000 but can go up to $100,000.
Mark says the Metro Eco product is turning out to be a win-win, as the best options often are.
Not only is it saving money for clients, but it’s also helping underpin the viability and attraction of green bonds.
He says the current portfolio is worth around $140 million and, within two years, could well hit around $500 million. At this point, it could well qualify to be syndicated into a green bond offer, which will enable more investors to underpin the growing strength of the green tech economy and hopefully spin out the opportunities even further.
