Enreal Home Energy Kit

TARGET MARKET DETERMINATION

Enreal, a brand of Intellihub Australia Pty Ltd.

ABOUT THIS DOCUMENT

TARGET MARKET DETERMINATION

This Target Market Determination (TMD) is made by Enreal, a brand of Intellihub Australia Pty Ltd (ABN 97 626 079 614) (“Enreal”) (Issuer) under section 994B of the Corporations Act 2001 (Cth).

This TMD describes who the Home Energy Kit (Product) has been designed for, having regard to the Product’s key attributes, the conditions under which the Home Energy Kit must be distributed, and the monitoring of this TMD for ongoing appropriateness. The examples are illustrative and not intended to be exhaustive. The TMD should not be treated as a full summary of the Product's Terms and Conditions and doesn't replace the T&Cs or any other documents in relation to the Product.

1. TARGET MARKET

PRODUCT DESCRIPTION (INCLUDING KEY ATTRIBUTES):

The Product is a subscription contract that has been specifically designed for customers who wish to defer payments to assist in the purchase of a Home Energy Kit (Battery and Solar, or Battery only) with monitoring, optimisation and ongoing support services. The Product is designed for customers described in this Target Market Determination, using different equipment and size options to best meet likely needs, objectives and financial situation (including the key attributes and eligibility criteria as listed below).

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Key Attributes

• The design, installation and usage of a Home Energy Kit (Battery and Solar, or Battery only)
• Additional equipment and installation required for the Home Energy Kit operation, including mounting frames, export limiters, bollards and other necessary items
• Ongoing services to operate the Home Energy Kit including:
  • Home energy management app for system monitoring
  • Intelligent energy control and optimisation with Evergen software
  • Support services for system and software issues
  • Manufacturer warranties including 25 years for Solar Panels, 10 years for Battery, Inverter
  • 5-year warranty for workmanship of services provided in installing the hardware

• Payment structure: Payments are made by a monthly instalment payment that covers the equipment and installation cost and the ongoing services payment costs, over a term of 10 years. These payments increase by 2.5% annually. The customer can choose to end this arrangement:
  • at 5 years by paying a lump sum that equals the outstanding balance of the equipment and installation costs (but with no further ongoing services payment costs and no administrative charges or other fees); or
  • at any other time during the contracted term by paying a lump sum that equals the outstanding balance of the equipment and installation costs plus the Issuer’s reasonable administrative costs incurred because of the early termination (but with no further ongoing services payment costs).
• No credit charges: The aggregate monthly instalment payments (and any lump sum termination payments) relating to the equipment and installation costs do not exceed the outright cash price of the equipment and installation and ongoing services. There are no interest charges, fees or other direct or indirect charges in the nature of a charge for credit or for the deferred payment structure.   The 2.5% annual increase to the monthly instalment payment is not a charge for credit as the aggregate of these monthly payments does not exceed the cash price of the relevant goods and services, even taking into account this increase.
• The customer will be required to provide a deposit.
• Equipment ownership: Standard structure is that ownership of the equipment passes to the customer on payment of the final monthly instalment or when the lump sum described above is paid.
• Software and support subscription services ends after the final instalment or when the lump sum described above is paid, unless a separate agreement for the provision of those services is entered into.
• Customers may obtain greater or lesser benefits depending on their energy plan. This is the customer’s decision but the Issuer does provide customers with information on energy plan selection.
• The Home Energy Kit product can only be used to acquire Enreal home solar battery systems and related services. It is not paid in cash and cannot be used to acquire other goods or services.

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Key Eligibility Criteria

• The home must be within the Enreal installation area
• The Homer Energy Kit is only available for residential premises
• The customer is the homeowner and has the right to install the Home Energy Kit at their residential premises.
• The customer must assign their rights to create Small-Scale Trading Certificates (STCs) to Enreal
• The customer is required to use the Evergen software with automated optimisation for the duration of the term
• The customer must have completed the major pre-works described in Exclusions below before installation can commence (where applicable)
• Enreal only provides the product to customers who:
  • Are the registered title holder of the home; and
  • Have a credit or debit card or bank account that allows direct debit payments.

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Exclusions

• Renters are not in the Target Market
• Owners of homes that are apartments or in Strata Title buildings are not in the Target Market
• Commercial customers are not in the Target Market
• Pre-work to ready the site for installation that the Issuer may require includes, but is not limited to:
  • Smart Meter installation and configuration
  • Removal or relocation of existing roof mounted equipment such as antenna, pool heating, solar hot water, vents and piping
  • Structural work to the house or roof (including replacement of the roof), in the event they are not structurally sound or suitable to accommodate the Home Energy Kit
  • Repair work required in relation to old or cracked roof materials
  • Additional building or planning approvals required, in the event the current Premises are not structurally sound or suitable to accommodate the Home Energy Kit, or building and/or planning approvals are required for the Installer’s provision of the Installation Services in your local area
  • Special access equipment, such as cranes
  • Asbestos management
  • Rewiring of existing electrical infrastructure
• The Product does not cover fees payable to electricity network owners, retailers or distributors, or distribution network service providers. These are separately payable by the customer under their own arrangements with those entities
• The Product does not provide for the supply of electricity and other network services

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LIKELY NEEDS, OBJECTIVES AND FINANCIAL SITUATION OF CUSTOMERS IN THE TARGET MARKET

The product is designed for:

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Likely Needs and Objectives

Customers that:

• want to purchase and install a home solar battery system (solar panels, inverter, home battery and related equipment) at their home;
• want to obtain ongoing services, including optimisation software, to assist with the efficient ongoing use of the home solar battery system;
• are willing to select an energy plan that is appropriate for use with the Product;
• want to defer payments to assist in the purchase of the Home Energy Kit over a period of 10 years with an option to end the arrangement at 5 years through payment of a final lump sum;
• do not require ownership of the equipment until all payments have been made;
• don’t want to pay any additional interest, fees of other credit charges for the product;
• are the residential home owner and do not live in an apartment or strata title building;
• are able to make the monthly payment as and when they fall due;
• are able to service the monthly payments without hardship;
• are able to provide the deposit amount; and
• are able to maintain the mandatory insurance coverage over the contracted term.

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Likely Financial Situation

• Customers that are able to repay the monthly payment amounts over the contracted term

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The product is not designed for:

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Customers:

• that need deferred payments to assist with the purchase of an item that is not related to the Home Energy Kit;
• that do not own and reside at their home (e.g. if the residential premises are leased to a tenant);
• for which the Product is assessed as unsuitable;
• that are less than 18 years of age;
• that do not meet the Issuer’s eligibility criteria;
• that want to install the Home Energy Kit in a business or commercial property, apartment or strata titled building;
• that want to use or maintain the Product in a manner that does not meet the Issuer’s requirements, including but not limited to where customers want to use the Product for a purpose that is not in accordance with normal use for which the Product was designed and manufactured, including turning off the automation of optimisation; and
• outside of Enreal’s serviceable area (in hard to reach, regional areas.

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2. DISTRIBUTION

Enreal applies the following conditions and restrictions to the distribution of the Home Energy Kit (Product) so that the product is likely to be provided to customers in the Target Market.

DISTRIBUTION CHANNELS

The Product may be distributed through any of the following means:

• Enreal Owned Channels:
• Website
• Social Media
• Sales team
• Media

These channels are controlled and monitored by the Issuer and authorised staff who are supervised and trained in the distribution of the Product and application process.

The Home Energy Kit can only be provided to customers by following an application and product selection process controlled by Enreal.

DISTRIBUTION CONDITIONS AND RESTRICTIONS

The Product can only be issued to customers that are eligible for the Product in accordance with the Issuer’s eligibility criteria (which includes an assessment that the Product is not unsuitable), that has been approved by the Issuer. The Product can only be distributed by the Issuer.

The Application Process requires identification of whether the customer is in the Target Market as part of the eligibility criteria for the Product.

3. TMD REVIEWS

This TMD will be reviewed as follows to ensure if remains appropriate:

REPORTING AND MONITORING OF DISTRIBUTION INFORMATION

Regulated persons must provide the following information to Enreal:

IMPORTANT INFORMATION

This Target Market Determination provides a general description of the Home Energy Kit product, and its design and distribution. It is not a full summary of the Terms and Conditions of the product and is not intended to disclose risks or benefits of the product for any particular customer. It is not intended to be a recommendation, opinion or advice that any person should take out this product, or that any person is within the target market for this product. It is not an offer of, or invitation to apply for, the product to any person in Australia or elsewhere.

Consumers should form their own view as to whether the Home Energy Kit product is consistent with their own objectives, financial situation and needs.

Regulated persons in relation to the product or this target market determination are under various obligations under the Corporations Act 2001 (Cth) which are not summarised here.