Environmental Upgrade Agreements (EUAs) – AEF | Australian Energy Foundation

Environmental Upgrade Agreements (EUAs)

How do EUAs work?

Approved financiers lend money for the works via participating Victorian and NSW Councils, who levy an Environmental Upgrade Charge on the building.

Repayments are collected through the rates system. This process provides the lender with greater security, unlocking fixed-interest, long term loans at competitive rates. Building owners can ask tenants to contribute towards the cost of the upgrade as they will benefit from lower operational costs. This enables building owners to increase the value of their property with minimal financial outlay. EUAs can also be initiated by tenants.

Who does this work for?

Businesses with daytime energy use looking to reduce their outgoings and protect themselves against rising energy costs and their landlords. Even if you don’t have a suitable roof you could consider an EUA to fund other environmental upgrades. The key benefit of this model is that you will be cash flow positive from day one. For more information on EUAs visit this website.

The basics

  • Building owner agrees to upgrades
  • Building owner, council and finance provider enter into an EUA
  • Finance provider advances funds for the upgrade
  • Council collects repayments through a rates based system and then passes the repayments through to the finance provider
  • The building owner can ask the tenants to contribute or cover the cost of the upgrades through the savings made on their energy bills and running costs

EUAs can offer excellent ways for businesses to:

  • Reduce running costs
  • Install renewable energy systems, such as solar
  • Reduce greenhouse gas emissions
  • Improve working conditions

At present, council areas offering EUAs include:

  • Blacktown City
  • Lake Macquarie City
  • City of Newcastle
  • North Sydney
  • Parramatta City
  • City of Sydney
  • City of Greater Bendigo
  • Dandenong City Council
  • Hobsons Bay City Council
  • Greater Geelong
  • Greater Shepperton
  • Macedon Ranges
  • City of Maribyrnong
  • City of Melbourne
  • Mildura Rural City Council
  • Moira Shire
  • Moreland City Council
  • Mornington Peninsula
  • South Gippsland Shire
  • Wyndham City Council
  • Brimbank City Council
  • Hume City Council
  • Mount Alexander Shire
  • Cardinia Shire
  • Yarra Ranges
  • City of Knox
  • City of Whittlesea
  • City of Darebin
  • City of Monash