CEFC signs MOU with Lannock Strata Finance to develop green finance for strata properties

17 March 2025

The CEFC will work with Lannock Strata Finance (Lannock) to develop a green strata loan product for residential strata properties via the Household Energy Upgrades Fund (HEUF™), unlocking the benefits of solar power for Australians who own or rent apartments.

Under a Memorandum of Understanding (MOU) signed by both parties, the CEFC will work with Lannock to develop a green strata loan product that would make it cheaper and easier for owners corporations to install rooftop solar in residential strata buildings.

The CEFC finance would offer a material reduction in the current borrowing rate to help finance the upgrades.

The CEFC capital would provide critical additional finance for owners corporations that receive solar rebates under State Government programs, including the NSW Solar for Apartments Residents (SoAR) program. SoAR is supported by the Commonwealth’s Community Solar Banks, allowing the owners corporations of eligible apartment complexes to access rebates of up to $150,000) toward the cost of installing solar.

CEFC CEO Ian Learmonth said: “We can drive down emissions from the built environment by putting more renewable energy into the hands of more Australians. Delivering this green strata loan product would help CEFC finance reach renters and apartment owners - a section of the community which has previously struggled to share in the benefits of renewable energy generation and reduce household costs.

“Reducing the cost of finance to install solar will overcome a significant barrier to the uptake of solar across Australia’s many apartment buildings, enabling renters and owner occupiers to lower their carbon emissions and energy use.”

Lannock is Australia's largest strata lender and a pioneer in strata finance. Lannock works with the NSW and ACT Governments as the loan servicer for the NSW Project Remediate Program and the ACT Government Private Buildings Cladding Scheme to facilitate funding to help residential buildings replace flammable cladding.

Australia’s existing 11 million homes are responsible for more than 10 per cent of total emissions and more than 25 per cent of electricity consumption⁵.

The Australian Government has allocated $1 billion to the CEFC to create the HEUF and fast-track sustainability improvements in existing housing by providing discounted consumer finance through a broad range of co-financiers.

The CEFC has engaged extensively with the sector and received proposals from a wide range of financiers, including major banks, mutual banks, non-banks and fintech innovators. The proposals covered green mortgages, green personal loans and other innovative green finance products to improve home energy performance for homeowners, renters and strata properties.

The CEFC has received proposals for investment opportunities worth more than $850 million in green loans. It has since announced investments via the HEUF worth some $345 million. It continues to work with a range of lenders to develop products with the potential to be financed through the HEUF, with further commitments expected in 2025.

The HEUF builds on the CEFC experience in designing and leading the green home and personal loan markets, and the uptake of clean energy technologies, through its consumer finance programs, as well as investments to help improve energy efficiency across the property sector.

Please note: The CEFC does not provide finance to individual borrowers and is not involved in individual financing decisions. The CEFC does not assess individual finance applications and does not provide grants. Interested borrowers should contact relevant financiers directly.

About Lannock Strata Finance

Lannock is Australia's leading strata lender. As pioneers in strata finance, Lannock has built its products and business through a commitment to innovation and excellence. Founded in 2004 by CEO Paul Morton, Lannock Strata Finance are the country's experts in strata funding and the economics of capital works in strata. Lannock works with the NSW and ACT Governments as the loan servicer for the NSW Project Remediate Program and the ACT Government Private Buildings Cladding Scheme. Lannock works with these state governments to facilitate funding for the remediation of residential buildings with flammable cladding to ensure safety and compliance.