How Council could help fund environmental upgrades to your business
Published on 03 May 2019
Learn how Council could help fund environmental upgrades to your business
2 May 2019
Mornington Peninsula Shire is continuing its efforts to tackle climate change, offering local business owners and suppliers financial assistance to fund environmental upgrades through Environmental Upgrade Finance (EUF).
Over the past two years, a range of local businesses have borrowed $2million through the EUF program, enabling 839kW of Solar PV systems to be installed across the Peninsula.
The EUF model provides long-term low interest loans for businesses to fund energy, water and waste efficiency upgrades and install renewable energy with repayments administered through your local council.
Shire Mayor Councillor David Gill called on business owners to consider their options.
“Making environmental upgrades benefits your business and your local community by creating jobs for installers and protecting your business from rising utility prices. These upgrades also free up cash flow; improve conditions for building occupants and make your building more attractive to new or existing tenants”.
Taking up EUF through your local council has many benefits, including:
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 potentially longer. This reduces your 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 due to the significant impact on cash flow.
Win-win for owner and tenants
Both owners and tenants benefit from building upgrades, through lower operating costs, a better working environment and a more valuable asset. The EUF program 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.
Who can apply?
To be eligible for EUF, the following criteria must be met:
- Applicant must be the owner of a non-residential building on rateable land in the Mornington Peninsula
- Proposed works must be on an existing building
- Project must have demonstrable environmental benefits
- Applicant must have a good Council rates payment history.
For more information, visit mornpen.vic.gov.au/euf or contact the Sustainable Melbourne Fund on (03) 9658 8740 or firstname.lastname@example.org.
PICTURE CAPTION: Peter Houghton - Owner and manager of the Rye Hotel, which was the first business on the Mornington Peninsula to take advantage of Environmental Upgrade Finance back in 2017. The program helped to install 329 solar panels and Electric Vehicle charging stations, reducing expenses and improving marketing and promotional opportunities for the business.