Environmental Upgrade Finance (EUF) is an agreement where a building owner borrows money for environmental upgrades from a financier and makes the repayments through the local council rates system. These repayments are known as Environmental Upgrade Charge (EUC).
Eligible projects under the Environmental Upgrade Finance include upgrades 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.
Suitable for businesses that:
- require longer term financing with low monthly payments
- don’t own the property and have a long-term tenancy of their site
Project size: More than $7500
You own the equipment
You’re responsible for maintenance
- 5–15-year contract
- 3– 9-month agreement period
- Equipment depreciation
On the balance sheet
- No upfront capital or security required
- Security provided by the council lowers the risk for the financier, resulting in better rates and longer repayment 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.
How it works
- Find out whether your local council supports Environmental Upgrade Finance.
- Select a financier that offers Environmental Upgrade Finance.
- Complete finance and council application process.
- Purchase the equipment.
- Pay off the loan through your monthly 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 ratable under the Victorian Local Government Act 1989 and used for predominantly 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.