Learn how to reduce owner costs by up to 80% by using energy efficiency financing. Get real value from energy ratings and audits, and deliver effective building upgrades.
Building Upgrade Finance
Discover how owners can reduce upgrade costs by up to 80% by using intelligent financing solutions.
Environmental Upgrade Agreements
Building upgrades that also improve building efficiency (such as the replacement of near end-of-life equipment) can access a form of financing called an Environmental Upgrade Agreement (EUA). EUAs can reduce the upgrade costs for owners by up to 80%. This achieved by a unique mechanism that enables tenant contribution to finance up to 80% of the building upgrade, with their consent.
Why would a tenant contribute to upgrading a building they don't own?
The upgrade injects immediate positive cash flow into the tenant’s business thanks to the lower energy costs. Plus, the tenant receives the benefit of improved amenity.
An EUA is a loan exclusively for projects that deliver environmental benefit. Finance repayments are made through an Environmental Upgrade Charge on council rates. As the repayments are made through council rates, which are typically considered an outgoing in net leases, it doesn't require leases to be altered if tenant contribution is sought.
Environmental Upgrade Agreements are a part of State legislation in Victoria and are currently available in the following local council areas:
City of Melbourne, Geelong, Bendigo, Hobsons Bay, Macedon Ranges, Maribyrnong, Moreland, Mornington, Shepparton, South Gippsland & Wyndham.
Many more councils are currently seeking to offer EUAs. If EUAs are not available in your area, contact your local council.
Energy Efficiency Loans & Leases
Specific lease and loan products are available for energy efficiency upgrades. Commonwealth Bank, National Australia Bank and Westpac all offer specific products for energy efficiency equipment. Leases and loans can provide reduced, or no, upfront costs for an efficiency upgrade. Often, because these products are specifically for energy efficiency projects, they are offered at lower interest rates and with longer term financing than standard commercial products.
Government Grants & Programs
There are several Government regulations and policies in Australia that are providing financial support for energy efficiency. Depending on where you’re located, and the size and type of your project, you may be able to access further incentives to be energy efficient. These programs can offer support for completing energy ratings, audits or the upgrades themselves.
As these programs are always changing, please contact us to find out what programs are available for your organisation.
Energy Ratings & Audits
Understand how energy ratings and energy audits can impact and enhance your business.
The National Australian Built Environment Rating System (NABERS) is a 6-star rating scale that measures the environmental performance of buildings. It uses your utility bills and converts them to a rating from 1 to 6 stars for your building, tenancy or home. A NABERS rating is valid for 12 months from the time of certification. Read more about NABERS here
Building Energy Efficiency Certificates (BEECs)
A valid BEEC is required for commercial office spaces over 2,000 square meters that are being sold, leased or subleased, to meet legal obligations under the Building Energy Efficiency Disclosure Act 2010. The BEEC consists of two parts; a valid NABERS rating and a valid Tenancy Lighting Assessment. The NABERS rating must be for the base or whole building whilst the Tenancy Lighting Assessment must be for the area of the building that is being leased, sold or subleased. Read more about BEEC here.
Note: from 1 July 2017 the threshold for BEEC will reduce to 1,000 sqm.
There has been major improvement to the Australian and New Zealand Energy Audit Standard (AS/NZS 3598:2014) which is promoting higher quality audit reports. The greatest feature of the standard is the consumer useability. It’s an easy reading document (as far as standards go) and it’s very clear on what should be included within the final audit document. For the end user, it is much easier to ‘tick off’ the standard requirements against the audit report.
Additionally, the standard has a practical focus with much more attention to the delivery of energy savings, rather than a focus on producing a report. This positions an energy audit as the first practical step in achieving energy efficiency improvements.
The standard describes three audit types, Type 1 (Basic), Type 2 (Detailed), and Type 3 (Precision Subsystem). The suitable application, anticipated business outcomes and what should be included within the final report is outlined for each audit type. Understanding what you want the business outcome to be, allows for easy selection of the appropriate audit type.
Energy audits are an effective first step in achieving energy efficiency improvements. To get the best results, ensure the audit type aligns with your facility and desired business outcome, and both you and your auditor are familiar with the Australian standard.
For an implementation focused audit that goes beyond the Australian Standard, contact EQ esco today.
Energy Rating & Audit Tools
More Tools Coming soon!
Delivering Energy Upgrades
EQ esco offers independent, end-to-end support for delivering your energy efficiency project. Read more about how our expertise can help you.
If you’d like to learn more about delivering an energy efficiency project yourself, we’ve provided a two-part guide to assist you.
Part 1: The Foundation
As a property expert, you understand the benefits energy efficiency can deliver to your business and its clients. Perhaps you’ve even developed a few energy management plans for your clients. But, how do you ensure that the energy savings, and their benefits are delivered and maintained?
The key to delivering energy savings is understanding the following topics:
Energy Performance Contracts
Measurement & Verification
Operation & Maintenance
Rather than explain the in-depth theory of what each of these topics are, this guide will tell you how to use them to deliver & maintain real energy savings.
Part 2: How to Deliver & Maintain Energy Savings
In theory energy audits, Energy Performance Contracts (EPCs), and Measurement & Verification are all straightforward, and will contribute to saving energy for your business. However, if you want a quality result from your energy efficiency upgrade, each of these aspects of your project must be delivered to a high standard.
In part 2 of our guide, I’ll up-skill you on some of the common quality gaps from my experience developing, delivering and reviewing energy efficiency upgrades.