Environmental Upgrade Finance for business

Environmental Upgrade Finance (EUF) is an agreement where a building owner borrows money for environmental building upgrades from a financier and makes the repayments through the local council rates system. These repayments are known as an Environmental Upgrade Charge (EUC).

Eligible projects under Environmental Upgrade Finance include upgrades that improve the environmental performance of a building, such as:

  • renewable energy generation
  • energy or water efficiency
  • waste reduction

Only some Victorian councils support this financing option. Check if your council offers it.

Environmental Upgrade Finance is also available in NSW and South Australia.

Suitable for businesses that:

  • own a building and require longer term financing with low monthly payments
  • don’t own the property and have a long-term tenancy of their site

Details

Project size: More than $15,000

You’re responsible for maintenance

Contract length

  • 4–15-year contract
  • 3–9 months to reach an agreement

Claim tax

  • Equipment depreciation

On the balance sheet

Additional benefits

  • No upfront capital or security required
  • Security provided by the council lowers the risk for the financier, resulting in smaller repayments over longer terms
  • Costs can be shared with tenants with their consent
  • Financing can be transferred if the property is sold

How to apply: Contact your local council.

Compare finance options >

How it works

  1. Only select councils support Environmental Upgrade Finance. Make sure your council does. If they do, find a financier that offers it too.
    Use our list of councils and financiers.
  2. Complete finance and council application process.
  3. Upgrade your building.
  4. Pay off the loan through your council rates. Your council passes the payment onto the financier.

The application process can take some time. If you don’t own the building, you may need to negotiate with the building owner. If you own the building and have tenants, you may need to negotiate with them.

Currently, Environmental Upgrade Finance isn’t available for vacant land or residential properties.

To be eligible, the property must be rateable under the Victorian Local Government Act 1989 and used predominantly for commercial, agricultural and industrial purposes.

We advise you to always seek advice from your accountant and legal representative when entering financial agreements.

Get a discount for your energy saving project

The Victorian Government offers businesses a discount on energy saving products that are installed by accredited Victorian Energy Upgrade providers. Check which energy saving products are registered for a discount.

Visit the Victorian Energy Saver for a list of simple tips to save energy in your business.


Want to know more? Get in touch with:

Sustainability Victoria's finance team who can help you through this process.

03 8626 8700

sustainablefinance@sustainability.vic.gov.au