Energy-efficient equipment performance contracts for business

Program name: 
Sustainable Finance for Energy Solutions
Location: 
Type: 

Overview

The Sustainable Finance for Energy Solutions scheme assists Victorian businesses take up an Energy Performance Contract. An Energy Performance Contract is where a service provider installs energy efficiency equipment for a business and guarantees a return on investment. The business pays it back over time. The service provider may pay for the installation of equipment.

How it works:

  • Find an energy service company (ESCO). A good place to start is the Energy Efficiency Council’s list of providers.
  • The energy company gets funding from a bank or financier, who pays for your energy efficiency upgrade.
  • You make monthly payments to the energy company or the financier.
  • If you don’t get the savings you were expecting, the energy company will pay the shortfall.
  • At the end of the agreement, you’ll own the equipment.

It’s advised to always seek advice from your accountant.

Benefits

  • reduce energy use and energy bills
  • reduce greenhouse gas emissions
  • no upfront cost or security

Key eligibility 

To be eligible for assistance, your business:

  • should be a large businesses with high-energy use (the service provider installs equipment of more than $500,000 in value)
  • premises should be owned by you or a long-term tenancy of the site is required

Next steps

Check your eligibility:

Victorian Government website

Find a service provider.