Better Building Finance

A new way of doing business

Environmental Upgrade Finance
smart finance for better buildings

A new and growing form of finance provided by major financiers in Australia for upgrading commercial and other buildings, reducing operating costs and improving energy, waste, water or energy efficiency or increasing renewable energy.

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What are the benefits?

Environmental Upgrade Finance can fund improvements to buildings which can reduce operating costs, increase yields, help attract and retain tenants and increase asset values. The benefits include:

No upfront capital or security

Upgrades can be made at zero upfront cost to the building owner, and with no additional security required. Traditional finance often requires additional security, and will usually not cover all project costs.

Reduced re-financing risk

Competitive interest rates are available, fixed for 10 years or longer. This reduces the re-financing risk and allows building owners to plan with more certainty. Traditional finance is generally only available for terms of 2-5 years.

Improved cash flow

Longer finance terms mean lower annual repayments, delivering immediate cash flow benefits to the owner. Under short term traditional finance, capital intensive upgrades may be unattractive, with impact on cashflow.

Win-win for owner and tenants

Provides a secure and transparent mechanism for owners and tenants to share the costs in proportion to the benefits they receive. Without this mechanism, it can be difficult for upgrades to be negotiated until the end of a lease.

What can I upgrade?

Environmental Upgrade Finance can fund any improvements to a building that improve energy, water or waste efficiency, or increase renewable energy.

How does it work?

Traditional Finance diagram

Traditional finance

Financer provides a loan, owner makes repayments

Environmental Upgrade Finance diagram

Environmental Upgrade Finance

Loan is highly secure, collected like council rates, allowing bank to provide better terms

Environmental Upgrade Finance with tenant contribution diagram

...with tenant contribution

Tenant uses portion of energy savings to contribute to repayments.

Who can access It?


Get a better asset with lower re-financing risks and cash flow implications than traditional finance.


Get energy savings and a more comfortable, healthy and productive working environment without increased costs.

Service Providers

Add value to clients by helping them access finance. Get bigger and better projects over the line.

Property Managers

Help clients upgrade, avoiding costly and time-intensive equipment failures and minimising client complaints.

Case studies

How does it compare?


Calculator results

Cash flow

  • EUF
  • Interest+Principal
  • Interest Only

Upgrade cost/benefit

Project cost:
Energy savings:
$ (per year)

Cash flow (1st quarter)

Traditional finance:
$ (Interest only)
$ (Interest + principal)
$ (no tenant contribution)
$ (with tenant contribution)

Share your results

Disclaimer: This comparison calculator is provided for illustrative purposes, and is for electricity only. It must not be relied upon for decision making. For the most appropriate solutions related to your circumstances, consult a qualified professional for advice related to undertaking a building upgrade, or the financing of that upgrade. Calculations do not include additional bank or council fees, or building upgrade management costs. The graph uses the following figures: Environmental Upgrade Finance interest rate=5.9%, Bank loan interest only rate=5.45%, Bank loan interest+principal rate=5.45%, Electricity growth = 2.5%/year



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