Frequently asked questions
Better Building Finance (BBF) is an independent service provider for councils who have enabled and lenders who offer Upgrade Finance. BBF is supported by, and received funding from, the Australian Renewable Energy Agency (ARENA).
We work as a facilitator with businesses, lenders and councils to manage environmental upgrade agreements – low-cost funding for environmental upgrades.
Enabling legislation for this form of finance has been passed in Victoria, New South Wales, and South Australia. Then, individual councils need to join the program and begin offering it to local businesses. You can see a list of the councils BBF work with here.
An Upgrade Agreement is an agreement between a lender, local council, and property owner to upgrade a building’s environmental performance and repay the project costs over a set period.
Both terms refer to the finance agreement between building owner, council and lender that aims to make environmental upgrades possible to existing buildings.
In South Australia and New South Wales, the legislation is known as Building Upgrade Finance (BUF) and can include heritage upgrades. That’s it!
FAQs for Councils
To join in and start offering local businesses affordable environmental finance, councils need to cover off delegations, training, documentation, legislative requirements, risk management and application processes. Contact us to find out how to get started.
No, BBF is a third-party administration service for councils. BBF’s expert team guide councils through the whole process of joining this program, and then administering the loans for them. They can otherwise choose to self-administer and do it themselves.
BBF work with the vast majority of participating councils in Victoria and NSW. Check out the full list of our council partners here.
There are many great reasons councils should consider this program, including:
Helping to reduce community CO2 emissions
Helping to increase investment in renewables
Stimulating economic activity and increasing business profitability
Keeping the benefits within the municipality
Unlock government grants and rebates
As an expert, Better Building Finance provides independent third-party services that are designed to make it easy for council to establish and run an EUA program.
BBF is a market leader with over a decade of experience
BBF is a trusted provider for over 50 councils
BBF has expert knowledge of legislation throughout Australia
BBF provides standardised service for lenders, owners and councils
BBF helps councils reduce and manage associated risks
BBF helps maintain continuity of service for councils
BBF helps minimise administrative costs for council
BBF provides its services for free to councils
Councils are paid a signing fee and annual admin fee for each EUA signed
As of late 2021, BBF has help its Council Partners deliver the following outcomes and benefits for local businesses:
Over $40 million has been invested via 123 projects
Over 500,000 tonnes of carbon dioxide equivalent (CO2-e) will be abated over the life of all the projects
Over 10,000 kW of renewables have been installed
Businesses will save over $100 million as a result of the upgrade projects funded
While there is an administrative component to this program, BBF handles a lot of it for council, and does so at no upfront cost.
Get in touch with our team and we can arrange a time to chat to your teams about whether this is the right move for you.
Frequently Asked Questions
To be eligible, businesses must be within a participating council municipality. Not all councils offer Upgrade Finance, so check if your council does, or talk to a member of the Better Building Finance team.
You also need to ensure that:
Building is on rateable land
Primarily a non-residential property (this includes Agriculture, Commercial Office Building, Tourism and Commercial and Industrial properties)
Upgrade has a measurable environmental benefit
Upgrade Finance is borrowed from a participating lender, such as the Sustainable Australia Fund.
Zero upfront capital and no additional security requirements.
Competitive interest rates fixed for up to 10 years or more, with reduced re-financing risk.
Improved cash flow, with lower annual repayments offset by energy cost savings.
Option to share costs, delivering a better asset for the owner, and a lower-cost and improved working environment for tenants.
You will be required to pay an administrative fee, which can be included in the overall finance amount. Fees vary based on council area, to find out how much you would pay, talk to us.
Engage an installer to scope and quote on the works
Your installer or you can talk to a lender about a finance option that’s right for your project
After the project is approved, your business, local council and lender sign an Upgrade Agreement.
The lender advances funds to the installer
An Annual Upgrade Charge Notice will be sent to you at the same time you receive your council rates notice.
Repayments are made on each of the quarterly council rate payable days via your local council. This payment is then passed on to the participating lender.
