An extended Victorian Government program will enable more business and building owners to borrow money from approved lenders to install solar power systems; with repayments made via their council rates.
The new Environmental Upgrade Agreements were previously only offered by City of Melbourne; but since November 1 have been made available to all local councils across the state.
“Many businesses find it difficult to get finance for environmental upgrades,” said Minister for Energy and Resources, Lily D’Ambrosio. “Through this scheme, the Andrews Labor Government is making it easier for business to obtain funding to improve the energy efficiency of their building.”
Ms. D’Ambrosio is encouraging all councils in the state to consider the Environmental Upgrade Agreement initiative to promote energy efficient and sustainable buildings in their area
Upgrades aren’t limited to solar power – also allowed under the scheme are retrofits including double glazing and energy efficient lighting; plus renovations that reduce water use and waste.
EUAs can be used in connection with the upgrade of existing non-residential buildings. There is no minimum or maximum loan amount legislated – these levels are determined by the lender. Upgrades can be made at zero upfront cost to the building owner, and with no additional security needed.
Some of the other benefits of the EUA include competitive and fixed interest rates, a repayment period of 10 years or more is possible and the loan stays with the property should the building owner decide to sell.
Further information on EUA’s can be viewed here.
Environmental Upgrade Agreements aren’t the only way for businesses to go solar without outlaying significant – or in some cases, any – capital.
Solar power purchase agreements (solar PPA‘s) and solar leasing are also options. Both of these remove the burden of ownership of a system. Under these arrangements, electricity remains an operational expense, both help hedge against electricity price rise risk and the business maintains access to mains grid power.
For those considering outright purchase, if a business owner is paying more than 20c/kWh for daytime electricity usage, a system appropriately sized to daytime load will provide a payback time of between 5 and 7 years according to Energy Matters.
