Quick answer
Green business loans are equipment or asset finance for things that cut energy use or emissions, such as rooftop solar, batteries, electric vehicles and efficient machinery. In Australia many carry a discount funded partly by the Clean Energy Finance Corporation, which works through lenders such as ANZ and Metro Finance rather than lending to small businesses directly. The asset must meet the program's eligibility rules.
Key points
- Usually structured as equipment finance, with the asset as security
- The CEFC funds discounts through partner lenders; you apply to the lender, not the CEFC
- ANZ and the CEFC added $150m to their discounted program in July 2026
- Only listed asset types qualify, so check eligibility before you choose a supplier
- Judge the loan on payback: energy savings against the total dollar cost
- Typical assets
- Solar, batteries, EVs, efficient equipment
- Structure
- Chattel mortgage, lease or loan
- Security
- Usually the asset itself
- Discount source
- CEFC programs via partner lenders
Energy is now one of the bigger controllable costs for many small businesses: the bakery running ovens from 3am, the cold room in a butcher shop, the delivery fleet doing laps of the suburbs. Spending money to cut that bill makes sense on paper. The hard part is that solar arrays, batteries and electric vans cost a lot upfront, and the savings arrive over years.
Green business loans are designed to bridge that timing gap. This page explains what they are, how the government-backed discounts actually reach a small business, and how to tell whether a project pays its own way.
What counts as a green business loan
There’s no single legal definition. In practice, lenders use the label for finance where the asset being bought meets a list of environmental criteria. Common eligible assets include:
- rooftop solar and inverters;
- battery storage;
- battery electric and some plug-in hybrid vehicles, and EV chargers;
- energy-efficient refrigeration, heating, cooling and lighting;
- more efficient production equipment and machinery;
- recycling and waste-reduction equipment.
Most are structured as equipment finance: a chattel mortgage, lease or hire-purchase agreement in which the asset itself is the security. Larger building upgrades may be funded through a business loan secured by property instead.
How the CEFC discount reaches you
The Clean Energy Finance Corporation is the federal government’s specialist green financier. It doesn’t write $40k solar loans for individual businesses. Instead, it puts money into lenders’ programs so they can price eligible green assets more sharply. You deal with the lender throughout.
As at October 2026, the two programs most visible to small businesses are:
ANZ’s Energy Efficient Asset Finance Program. On 31 July 2026 the government announced a further $150m for the program from the CEFC, with ANZ and the CEFC sharing the cost of the discount. According to that announcement, more than 1,600 businesses have used it since 2017, drawing over $444m in discounted finance, and eligible assets include rooftop solar, batteries, EVs, energy-efficient equipment and recycling technology. See our ANZ profile.
Metro Finance’s MetroEco loans. The CEFC has backed Metro’s green lending, which offers a discount on eligible assets for business customers. According to the CEFC, eligible assets have included electric vehicles, batteries, solar, EV chargers and efficient farm and construction machinery. See our Metro Finance profile.
Other banks have run CEFC-backed programs over the years. Eligibility, asset lists and discount sizes change, so ask any lender for its current green criteria in writing. Our Clean Energy Finance Corporation page explains how its partnerships work.
What lenders check
The green discount doesn’t change the credit assessment. Lenders still ask the questions they would for any equipment loan:
| What’s checked | What they want to see |
|---|---|
| Eligibility of the asset | The make, model or specification is on the program’s approved list, shown on the supplier’s quote |
| Trading history | Usually an established ABN; newer businesses may need a bigger deposit or extra security |
| Ability to repay | Bank statements or financials showing the repayments are affordable now, before savings kick in |
| Credit history | Business and director credit files |
| The supplier | An established installer or dealer who will issue a valid tax invoice |
| Ownership of the premises | For solar on a leased building, the landlord’s consent and what happens at lease end |
That last one trips up a lot of tenants. Panels bolted to someone else’s roof can be awkward security. Talk to your landlord and lender before you sign a supplier contract.
Already have quotes in hand? Run the project past us. The form is short and doesn’t involve a credit check.
Will the project pay for itself?
That’s the real question, and it’s worth answering before you choose a loan. Work out:
- The annual saving. Lower power bills, lower fuel or charging costs, and any reduction in maintenance. Use your actual bills, not a brochure figure.
- The total cost of finance. Every repayment plus fees, in dollars, across the term. Our equipment finance calculator does this.
- The cash flow in year one. If repayments are higher than the monthly saving, the business has to cover the difference until the loan is paid off.
A worked example
Illustrative figures only.
A regional bakery gets a quote of $48k for a rooftop solar system and battery. Its accountant estimates the system will cut power costs by about $900 a month based on its current bills and operating hours.
- Financed over five years, the total repayments come to roughly $57k including fees on the quote the bakery receives.
- Monthly repayments are close to $950, a little more than the expected saving.
- After year five, the full saving flows to the business for the remaining life of the system.
The project nearly pays its own way during the loan and is clearly positive afterwards. A green discount on the finance would tip the monthly sums into the black. A longer term would too, but it would increase the total cost.
Tax and other help
Small businesses with aggregated turnover under $10m can use the instant asset write-off, with its $20,000 limit tested asset by asset. The government made the threshold permanent from 1 July 2026; check the ATO’s current guidance before you rely on it. Financed assets can qualify, but how you claim depends on whether you use a chattel mortgage, lease or hire purchase, so ask your accountant.
State and territory programs come and go too. Some offer rebates or discounts on specific upgrades. For how grants compare with borrowing, see government grants vs business loans.
Pros and cons
In favour
- Discounted pricing on eligible assets
- The asset usually secures the loan, so property isn’t needed
- Savings can cover much of the repayment
- Spreads a big capital cost over the asset’s working life
Against
- Only listed assets qualify, which can limit your supplier choice
- Approval is no easier than for standard finance
- Savings estimates can be optimistic
- Leased premises complicate solar finance
Alternatives
- Standard equipment finance from a non-bank if the asset doesn’t qualify or you’re declined for the green product.
- Supplier payment plans, which can be simple but are often dearer in total.
- A property-secured loan for a large upgrade bundled with other works.
- Paying cash, when the business has spare reserves and you don’t need that cash elsewhere. Our solar and energy upgrades page compares these options for that purpose.
Ready to cut the power bill?
Few purchases a business makes can chip away at their own repayments the way an energy upgrade can. Whether the right finance is a discounted green loan, standard equipment finance or something secured against property depends on your business and the asset you’ve chosen.
The enquiry is about sixty seconds of typing, and your credit score is unaffected by it. Your information isn’t broadcast to every finance company going, so the phone stays calm. A person with lending experience looks at the quote and your business, then calls with the options that fit. Please give us the asset, the supplier quote amount and your trading details as they really are, so the first suggestion is a workable one.
Frequently asked questions
What is a green business loan?
It's finance for assets that reduce energy use or emissions, such as solar panels, batteries, electric vehicles, heat pumps or more efficient machinery. Most are equipment finance products where the lender offers better pricing because the asset meets green eligibility criteria.
Can I borrow directly from the Clean Energy Finance Corporation?
Not for a typical small business project. The CEFC funds partner lenders, which then offer discounted finance to their customers. You apply to the partner lender, which makes its own credit decision.
Which lenders offer CEFC-backed business finance?
As at October 2026, ANZ runs an Energy Efficient Asset Finance Program backed by the CEFC, which the government announced was expanded by $150m on 31 July 2026. Metro Finance offers MetroEco green loans backed by CEFC funding. Other banks have run programs too, so ask your own bank what it currently offers.
Does a green loan approve more easily than normal equipment finance?
No. The lender still assesses your business, credit history and ability to repay in the usual way. The green element affects pricing and which assets qualify, not whether you'll be approved.
Can I claim a tax deduction on financed solar or equipment?
Often, depending on how the finance is structured and your business's circumstances. The $20,000 instant asset write-off threshold for small businesses applies per asset, and depreciation or lease deductions may apply otherwise. Your accountant can confirm what applies to you.
What if I'm declined for green equipment finance?
You may still fund the project another way, such as standard equipment finance from a non-bank, a secured loan against property, or a supplier payment plan. The discount is lost, but the project's savings may still justify it.