(13 June 2024 – Australia) Small and medium sized enterprises (SMEs) are continuing to expand investment in new or used energy efficient equipment, with the value of NAB’s Green Finance for Vehicles and Equipment loan book increasing 80 percent year-on-year.
NAB’s internal data reveals sustained demand momentum for electric vehicles (EVs), with finance growing 51 percent in addition to solar panels, up 33 percent. Electric buses specifically have also recorded strong uptake, growing 168 percent albeit from a low base.
“The data highlights Australian businesses increasing efforts to improve their sustainability credentials, while also reducing business costs. With higher interest rates and stubborn inflation, many businesses are continuing to operate in a higher cost environment and are searching for cost savings” commented NAB Business Banking Executive, Brett Moore.
“What we’re continuing to see is business owners making considered investments in energy efficient equipment that can help reduce operating costs – such as energy, as well as their carbon footprint. And customers have so much more choice today when it comes to electric machinery. We have customers investing in assets such as electric busses, trucks, and forklifts. Farmers are also investing in energy efficient tractors for their farming operations” Moore added.
Mr Moore said investment in green equipment would continue to be supported following the Federal Budget.
“Last month the Treasurer handed down the 2024 budget with one of the highlights for qualifying small businesses being the extension to the A$20,000 instant asset write off for eligible assets, accessible to around four million Australian businesses. We welcome the extension and expect this will continue to drive investment in energy efficient equipment with the help of NAB’s business finance for green equipment.”