Council’s ‘green light’ for environmentally friendly upgrades

Published on 25 October 2021

Frankston City’s commercial building owners can achieve environmentally friendly upgrades thanks to a new loan.

Whether it be installing solar panels, electric vehicle charging stations, water efficiency initiatives, replacing lighting or other improvements, a Frankston City Council Environmental Upgrade Finance (EUF) loan will enable businesses to upgrade – critically to address climate change and reduce energy costs.

The upgrades can also provide positive cash flows due to extended loan terms, where the savings exceed the repayments.

Environmental Upgrade Finance is a loan for building upgrade works, repaid quarterly via Council rates. A lender provides the upfront capital for the works, which the business then repays through the council rates system over periods of up to 20 years. Council then remits it back to the lender.

Council’s involvement means businesses can upgrade buildings sooner all while accessing affordable finance terms and savings along the way.

Frankston Council joins more than 40 existing council partners in Victoria after the program received support from the Australian Renewable Energy Agency (ARENA).

North West Ward Cr Sue Baker said the program is a win for commercial landlords, tenants and Council, adding: “If we can deliver a loan to help businesses move faster toward better environmental outcomes, then we are all for it.

“This program will allow for significant changes and upgrades within Frankston City buildings to take place quicker, which means more savings with cheaper energy and more benefits to our environment.

“This program is a fantastic initiative for our environment and for our businesses, with massive savings potential for both landlords and tenants, which is why we were happy to jump on board and deliver it,” Cr Baker said.

To date, Better Building Finance has worked with local councils to facilitate more than 100 environmental upgrade projects at an investment of more than $40 million, generating almost 10,000kW of solar power, which will reduce carbon emissions by around 500k tonnes over the life of the projects.

Better Building Finance Executive Manager Ed Cotter welcomed Frankston Council to the program.

“We’re really excited to welcome Frankston City Council to our program to make buildings better. With the success we’ve had over the past few years, we know that this program can have a huge impact in supporting local businesses and helping councils deliver on their economic development and sustainability goals,” Mr Cotter said.

For more information, please visit: https://www.frankston.vic.gov.au/Business/Business-Support-and-Resources/Environmental-Upgrade-Finance-Program