What kinds of green finance exist ?
Office tenants have many options to help pay for auditing, planning and implementation of energy efficiency activities including new equipment, retrofits, lighting and general office upgrades.
Benefits of green financing
Whilst fitting and equipment upgrades are a tenant obligation, major office upgrades or adjustments to building services may require a negotiation with the landlord or building manager to establish potential contributions or shared obligations.
High-impact efficiency measures identified by auditing and planning may require capital expense that will require a business case. Financing options can improve the business case for up-front investment or make use of operational rather than up-front capital.
How to access finance
There are three major types of finance options:
- Loans and leases are ways to access the capital for investment that is then paid off in part by the savings in energy bills. In addition to traditional equipment leases (which now include lighting and plant options), there are now relatively new loan models tailored to efficiency upgrades that were developed in Australia to share the costs and benefits of retrofits between building owners and tenants.
- Grants are available from both Federal and State agencies. Along with grants tailored to sustainability and efficiency, there are some more general industry and business development grants that CitySwitch signatories may find useful.
- Certificate Schemes are running in NSW and Victoria. These schemes create additional income from certain types of accredited efficiency measures. Certificates help these states meet mandatory energy efficiency targets.