The Sustainable Melbourne Fund

If you are building owner or tenant within the City of Melbourne you may be eligible for low-interest finance for upgrades that will reduce the environmental impact of your building. Upgrades may include but are not limited to the installation of solar, lighting, lift upgrades or air conditioning. Finance is provided through Environmental Upgrade Agreements (EUAs).

EUAs are a three-way contract between the building owner, a lender and the City of Melbourne. When the EUA is in place, the lending body forwards the retrofit loan to the owner. The City of Melbourne collects loan repayments through a rates charge. The City then passes the loan repayment back to the lender. 

How environmental upgrade finance works

  1. Ensure your building is predominantly non-residential, within the City of Melbourne municipal boundaries and is not owned under a Self-Managed Super Fund arrangement.
  2. Complete a solar assessment or energy audit to calculate the return on investment for opportunities such as improvements to space heating and cooling or the installation of solar. We can provide this service.
  3. Review the available finance offer from the Sustainable Melbourne Fund and associated cash flows. If you would like to proceed, you would then start the application process, which includes an application form, a statutory declaration and the signing of an Environmental Upgrade Agreement.
  4. The City of Melbourne declares an environmental upgrade charge on your building.
  5. The lender advances the upfront costs for the retrofit.
  6. Repayments are collected through the Melbourne City Council rates system.
  7. The City of Melbourne forwards the collected charges to the financier.

The benefits of EUA

  • 100 per cent of installation costs are financed, meaning improved cash flow and no upfront expenses for building owners.
  • Long term finance (up to 20 years) with fixed interest rates is available, improving the net present value of projects and adding to the bottom line.
  • The loan repayments are made through the rates system, meaning that the loan stays with the property if the owner decides to sell, and can be transferred to incoming tenants.
  • The tenant can contribute to the loan repayments, allowing for tenants to have lower operating costs if their contribution is less than current, and projected energy costs.
  • No security is required as the rateable land becomes statutory security for the loan – the building owner does not need to pledge their property or any other form of collateral to access the finance.
  • There are no financial covenants dictating what the building owner can and cannot do with their assets while the loan is being repaid.
  • There are no reporting requirements.

How our sustainability team can help

Our experienced sustainability consultants can complete a solar assessment or energy audit of your commercial building to identify improvement opportunities and help you to take advantage of this program.

Get started today by filling in the form to the right or call us on 03 8662 5196 to find out more.