Businesses amp up green investments with electric vehicles and solar panels topping the shopping list

National Australia Bank
  • NAB’s business finance for green equipment grew 80% in the past six months*
  • States leading the growth are WA (up 305%), NSW (up 82%) and Tasmania (up 78%)
  • Daniel Zanon, owner of VTH Supply Chain Solutions, is progressively building his fleet of electric trucks used for ‘last mile’ parcel delivery

New data from Australia’s largest business bank shows many small and medium sized businesses are continuing to invest in new or used energy efficient equipment, with the value of the bank’s Green Finance for Vehicles & Equipment loan book growing 80% compared to the same period last year*.

The data shows significant demand for electric vehicles, with finance growing 51%, as well as solar panels, up 33%. Electric buses specifically, although off a low base, have also seen strong uptake, growing 168%*.

NAB Business Banking Executive Brett Moore said 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,” Mr Moore said.

“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.”

Top growth by state in NAB’s business finance for green equipment:

  • West Australia, up 305%
  • New South Wales, up 82%
  • Tasmania, up 78%
  • Victoria, up 51%

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 $20,000 instant asset write off for eligible assets – accessible to around four million Australian businesses,” Mr Moore said.

“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.”

VTH Supply Chain Solutions owner Daniel Zanon is progressively building his fleet of electric trucks used for ‘last mile’ parcel delivery.

“We’ve currently financed four electric trucks, with the goal to add another 35 to our existing fleet of 140 petrol vehicles by the end of next year,” Mr Zanon said.

“All of the key Australian logistics companies use contractors – to some extent – for parcel delivery from the local parcel centre to customer’s delivery address. This is where my fleet comes in.

“Covid brought with it a surge in online shopping and demand for home deliveries, and many of our clients are focused on their green credentials throughout the supply chain.

“My electric trucks can get their deliveries done with no vehicle emissions while also bringing costs down in the long run – such as gas expenses and fuel levies.”

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