Victorian Environmental Upgrade Finance market summary

December Quarter 2018/2019

The Environmental Upgrade Finance (EUF) market in Victoria is leading nationally, with 54 projects financed of $27.1 million as of December QTR 2 2018/2019. Of the total capital value invested so far, there are 42 renewable solar projects (77%), ten energy efficiency projects (22%) and one project that has implemented both renewable and energy efficiency measures (2%).  

Currently, a total of 31 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%) with a respective capital invested value of $14.81 million and $9.67 million. In terms of impact, it is expected that all 54 projects will deliver a combined greenhouse gas (GHG) emission saving of 349,000 tonnes carbon dioxide equivalent (CO2-e) over the life of all the projects 

A significant uptake of EUFs was seen in the last two years where a total of 29 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 (84%) were renewable solar projects which reflects the emphasis on suitability of EUF for small-to-medium sized industrial and agribusiness roof-top solar. 82% of all EUF projects in Victoria so far are below $750,000 indicating that there is a strong demand from SMEs to take up energy efficiency and renewables.

This data was provided by Better Building Finance.

EUF Case Study

Businesses can now take advantage of EUF loans to undertake energy efficiency and renewable energy actions, with the energy cost savings contributing towards loan repayments made via local government rates.

Hilustre Coatings is an example of a company that used SV funding to improve energy efficiency, this video also describes the types of projects that can be financed under an EUF and how Sustainable Melbourne Fund and Sustainability Victoria are working together to grow EUF lending through local government rates.