Victorian Environmental Upgrade Finance market summary

The Environmental Upgrade Finance (EUF) market in Victoria is leading nationally, with 47 projects financed of $24.86 million as of September QTR 2018/2019. Of the total capital value invested so far, there are 31 renewable solar projects (74 per cent), 10 energy efficiency projects (22 per cent) and 1 project that has implemented both renewable and energy efficiency measures (2 per cent).

Currently, a total of 29 Victorian Local Government Authorities (LGAs) have been onboarded to facilitate EUF agreements.

The two sectors of Commercial Buildings and Manufacturing, Warehouse, Distribution and Storage take the major share of projects (90 per cent) with a respective capital invested value of $14.53m and $7.63m. In terms of impact, it is expected that all 47 projects will deliver a combined GHG emission saving of 288,039 tCO2-e over the life of all the projects.

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A significant uptake of EUFs was seen in the last two years where a total of 26 projects were added between 2016/2017 to 2017/2018. This was driven by an amendment to the Local Government Act 1989 enabling all Victorian councils to offer EUFs.

Most of the projects in this period (73 per cent) were renewable solar projects which reflects the emphasis on suitability of EUF for small-to-medium sized industrial and agribusiness roof-top solar. 82 per cent of all EUF projects in Victoria so far are below $750k indicating that there is a strong demand from SMEs to take up energy efficiency and renewables.

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The data for this update has been provided by Better Building Finance.