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Green Energy Case Study

Result With Car
Result Without Car

Case Study,

Will has purchased a block of land and is Building a new home.

• The land cost $450 000
• Will received a quote from the builder for $550 000.

Will has discussed with his Mortgage Broker that CBA are offering cheaper home loan rates for GREEN RATED homes – (Link below with criteria)

https://www.commbank.com.au/home-loans/latest/green-home-offer.html

To meet the criteria for the GREEN home loan Will needs to

  • Install SOLAR
  • Get a min 7 STAR NATHERS rating.

Energy Assessment

Will arranges an Energy assessment done on the proposed Build by an accredited ENERGY assessor. The assessor determines that for the home to pass the 7 STAR NATHERS rating, the following will be needed to be added to the home:

  • Insulation throughout the home
  • Double glazing on all windows
  • 6 extra fans to be installed

The cost for the above 3 items is $22 000.

  • Total to build standard home = $550 000
  • Total cost to Build a GREEN HOME = $572 000 ($550 000 + $22 000)

House

Will is applying for a home loan with CBA and lending 80% of the cost of the land and Build.

Standard CBA home loan

Amount = $800 000 ($450k + $550k*80%)
Interest rate = 4.90%

GREEN HOME LOAN

Amount = $817 600 (450k + $572k*80%)
Interest rate = 4.40%

SOLAR

  • Cost to instal SOLAR = $7,000
  • Currently electricity bill is $2,150 pa
  • Electricity bill with SOLAR estimated to be $350pa

Car

Will currently own’s a 2020 Subaru WRX STI. He is looking at two options in the next few months

  1. Purchase a new 2022 WRX STI sedan – cost $64 000
  2. Purchase a base model 2022 TESLA – cost $70 000

2022 WRX

2022 Tesla

Petrol car details

  • Will drives 18 000km pa
  • WRX has a 60L tank
  • WRX 650 km per tank
  • WRX takes 98 fuel $2.25 per litre

Electric car details

  • Government rebate- The GOVERNMENT is current providing a $1500 rebate for buying an Electric vehicle.
  • Home car charger – The cost to install an electric car charger in the garage is approx. $1,600
  • Cost to charge – Will works a lot from home plus having roof solar Will estimates he will be able to always charge the car at home for free

Car Finance

Will has spoken to a car finance broker who has provided him quote for the WRX and the TESLA. There are some cheaper GREEN car loans available.

Cost of interest and fees over the life of the loan

  • 2022 WRX car loan = $5,700
  • 2022 tesla car loan = $4,300
Result With Car
Result Without Car