The Australian Government has announced an additional $150 million in discounted finance to help small and medium-sized businesses invest in energy-efficient technologies, reduce electricity costs, and improve business productivity. The funding will be provided through an expanded partnership between ANZ Bank and the Clean Energy Finance Corporation (CEFC), further strengthening efforts to support Australia’s clean energy transition.

The new funding will be available under the ANZ Energy Efficient Asset Finance Program, which was introduced in 2017 to encourage businesses to adopt sustainable technologies. Under the program, both ANZ and the CEFC contribute a 0.4 per cent annual interest rate discount, giving eligible businesses a combined finance discount of 0.8 per cent per year. The lower-cost loans can be used to purchase a wide range of energy-efficient assets, including rooftop solar systems, battery energy storage, electric vehicles, energy-efficient industrial machinery, and recycling equipment.

The initiative is designed to address one of the biggest challenges faced by many businesses—the high upfront cost of investing in clean energy technologies. By making finance more affordable, the government hopes to encourage businesses to adopt energy-saving equipment sooner, helping them reduce operating expenses while improving long-term competitiveness.

Since the program was launched, it has provided more than $444 million in discounted finance to over 1,600 Australian businesses. During the last financial year alone, more than $90 million in funding was delivered to support clean energy and energy-efficiency projects across different industries.

Australian Minister for Climate Change and Energy Chris Bowen said that many small and medium-sized businesses want to reduce their energy bills but are often discouraged by the initial investment required. He noted that affordable finance enables businesses to make these upgrades earlier, resulting in immediate savings on electricity costs and improved operational efficiency.

Minister for Small Business Dr Anne Aly said the funding reflects the government’s commitment to supporting Australian small businesses. She stated that helping businesses lower their energy expenses allows them to grow, remain competitive, and contribute to a stronger economy.

The benefits of the program are already being demonstrated by businesses such as Lago Smallgoods, a family-owned food manufacturer in Victoria. The company used discounted financing to invest in advanced slicing machines, robotic picking systems, and modern packaging equipment. According to General Manager Rhett Davis, the upgrades increased the company’s production capacity by around 30 per cent while reducing operating costs by approximately 20 per cent.

With the additional $150 million now available, the Australian Government expects hundreds more businesses to modernize their operations through energy-efficient technologies. The initiative is expected to lower energy costs, reduce carbon emissions, improve business resilience, and further support Australia’s transition to a cleaner and more sustainable economy.