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.Skip to content
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.
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.
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.
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.
EUF used for 5-building precinct upgrade.
Upgrades: Cooling tower system, two efficient chillers, air ducting system, digital building control system
Annual energy savings: $250,000
Annual repayments: $92,528
Newly built small industrial warehouse re-positioning for the long term.
Upgrades: Installation of 10kw solar array, LED lighting upgrade
Net annual repayments: $996
Family-owned art deco CBD office building with ageing equipment.
Upgrades: New PowerPax chiller (completed), new high efficiency boiler, variable speed drives for fans, valves and sensors to achieved zoned heating and cooling, and LED lighting (proposed)
Annual energy savings (completed): $11,000
Annual energy savings (proposed): $32,787
Family-owned regional shopping centre facing competitive pressures. EUF could help the owner and existing tenants co-operate to upgrade, reducing energy costs without rental increases.
Upgrades: LED lights, refrigeration and cool room replacements, installation of efficient heating and cooling unit.
Net annual repayments: $8,251(after tenant contribution)
Annual energy savings: $38,489
Newly acquired commercial office asset. 100% project finance under EUF would enable pro-active upgrades to future-proof the asset at no cost to the owner. Longer-term fixed interest rate combined with tenant contribution would enable more significant improvements with reduced cash-flow impacts.
Upgrades: 31kW solar system, lighting replacements and motion sensors, new central heating and cooling system
Net annual repayments: $8,332(after tenant contribution)
Annual energy savings: $39,583
1930s office block with sole tenant and sustainability-focused investor. EUF could make it easier for the owner to share upgrade costs with tenants, while long-term fixed interest finance would deliver cash flow benefits.
Upgrades: Efficient heating and cooling system, lighting replacements and motion sensors
Annual Repayments: $55,609
Net Annual Repayments: $11,121(after tenant contribution)
Small office building housing professional consultancies. EUF could help the owner meet tenant expectations regarding sustainability and energy costs without needing to raise rents. Longer-term fixed interest rate could make the project cashflow positive.
Upgrades: Improved heating and cooling controls and sensors, LED lighting, 40kW solar system
Net annual repayments: Nil(cashflow positive from outset)
Annual energy savings: $17,881
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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