Environmental Upgrade Finance for business

Last updated: 6 September 2022

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
  • climate change adaptation

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


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. As part of the process with your local council, they will provide relevant documentation, including a contract, to be signed.
    Download an example of an Environmental Upgrade Agreement template (DOC, 214kB)
  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.

To be eligible, the property must be rateable under the Victorian Local Government Act 1989.

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.

Correct as at November 2019

Disclaimer: The information provided in this document is general advice only. It does not take into account your particular needs or objectives and does not constitute legal or accounting advice. Accordingly, any comments or statements made are not a recommendation that a particular course of action is suitable for you and you need to seek your own legal, tax and accounting advice in relation to your specific circumstances.