Renewable energy equipment purchase agreement for business

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

The Sustainable Finance for Energy Solutions scheme assists Victorian businesses take up a Power Purchase Agreement. This is where an energy provider installs renewable energy equipment on a business’ site. The business pays a pre-determined rate of electricity over time. Renewable energy equipment is often solar PV systems.

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 provider will buy, install, own and operate the renewable energy equipment on your site. They’ll sell the energy to you at a locked-in price. There may be times when you can’t use the renewable energy source and will instead use on-grid energy.
  • At the end of the agreement, you may have the option to buy the equipment.

Always seek advice from your accountant and legal representative when entering into financial agreements.

Benefits

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

Key eligibility 

The Power Purchase Agreement is suitable for businesses that:

  • want to switch to renewable energy without owning or maintaining equipment
  • don't own the property and have a long-term tenancy of their site

 Next steps

Check your eligibility:

Victorian Government website

Find a service provider.