Investors and borrowers drive clean energy use through Plenti Green Loan Marketplace
Innovative platform backs growth of green loans
Purchasers, installers and manufacturers are brought closer together through the Plenti Green Loan Marketplace to encourage borrowers to invest in energy efficient technologies and rooftop solar.
$32m
CEFC finance
1st
Australian peer-to-peer green lending platform
1,000
loans in 1st year
This facility created a real opportunity for retail investors to have access to a regulated green loan product for the first time in the Australian market.Richard LovellExecutive Director, CEFC
Our investment
The Plenti Green Loan Marketplace helped propel Plenti towards becoming one of the biggest non-bank green loan providers in Australia while providing increased opportunities for small businesses and individuals to finance clean energy technologies.
More than 200 retail investors participated in the Plenti Green Loan Marketplace, which was seeded with $20 million from the CEFC in 2017, when Plenti was known as RateSetter. The CEFC increased its commitment to $32 million.
Plenti has since reshaped its business and has continued to develop its products to become one of the biggest non-bank green loan providers in Australia today. It has extensive experience delivering market-leading green finance to Australian households via its ~600 strong national accredited installer network.
our impact
Australia’s transition to a lower emissions economy. The Reserve Bank of Australia notes that markets for green bonds, green loans and securitisations, and ethical equity funds, have grown quickly over recent years, mirroring trends seen internationally. However, they still comprise only a small share of the total market.1
The CEFC has a proven track record of working with specialist lenders to support the uptake of clean energy technologies by small businesses and households. By working with these co-financiers and tapping into their established networks, the CEFC can support many more individuals and businesses seeking to improve their sustainability and reduce their carbon footprint.
Loans sourced through the Plenti Green Loan Marketplace helped finance a wide range of green product purchases by both individuals and businesses. Technologies included solar panels and battery systems, energy efficient lighting, energy efficient heating and cooling systems, emissions-reducing industrial applications, electric and low emission cars and trucks.
Through the peer-to-peer platform investors were able to nominate the amount they wish to invest, the interest rate they were prepared to accept, and their request was then matched to approved borrowers.
In its first year alone, more than 1,000 households and small businesses financed energy efficient and renewable energy products through the platform. Solar financed during that period resulted in abatement of more than 2,250 tCO2-e.
