Compare finance options to reduce energy in your business

of options available

Energy Services Agreement

A service provider manages the installation of energy efficient equipment for a business. In some cases, they can guarantee savings from the equipment.

For energy efficiency projects only.

  • Finance model

    Innovative

  • Project size

    More than $100,000

  • Equipment is owned by

    You

  • Equipment is maintained by

    The service provider (for the first 12 months)

  • Contract length
    • 4–15 year contract
    • 3–9 month negotiation period
  • Claim Tax
    • Equipment depreciation
  • Balance sheet

    On

  • Additional benefits
    • Depending on your contract, the service provider could guarantee savings
    • The service provider will manage the project
  • How to apply

    Contact an energy service provider

Power Purchase Agreement

‘Behind the meter’ is a model of a Power Purchase Agreement where an energy provider installs renewable energy equipment on your business’ site. You then pay a predetermined rate of electricity over time.

For renewable energy projects only.

  • Finance model

    Innovative

  • Project size

    More than $7500

  • Equipment is owned by

    The energy provider

  • Equipment is maintained by

    The energy provider

  • Contract length
    • 10–30 year contract
    • 3–9 month agreement period
  • Claim Tax

    No

  • Balance sheet

    Off

  • Additional benefits

    You may have the option to buy the equipment at the end of the contract

  • How to apply

    Contact your energy provider

Environmental Upgrade Finance

A financier lends money to your business to buy energy efficiency equipment. You pay it back over time through council rates.

Only available in select council areas. Call your council to see if they can help.

  • Finance model

    Innovative

  • Project size

    More than $15,000

  • Equipment is owned by

    You

  • Equipment is maintained by

    You

  • Contract length
    • 4–20-year contract
    • 1 month agreement period
  • Claim Tax
    • Equipment depreciation
  • Balance sheet

    On

  • Additional benefits
    • Costs can be shared with tenants
    • Finance can be transferred if the property is sold
  • How to apply

    Contact your local council

Operating lease finance

A financier buys energy efficiency equipment for your business to hire and use.

  • Finance model

    Traditional

  • Project size

    More than $7500

  • Equipment is owned by

    The financier

  • Equipment is maintained by

    The financier

  • Contract length
    • 1–5 year contract
    • 1–3 month negotiation period
  • Claim Tax
    • Lease payments
  • Balance sheet

    On

  • Additional benefits

    You can upgrade the equipment once the contract is complete

  • How to apply

    Contact your bank

Hire purchase finance

A financier buys energy efficiency equipment for your business to hire and use.

  • Finance model

    Traditional

  • Project size

    More than $7500

  • Equipment is owned by

    The financier until you’ve paid off the loan and ownership is transferred to you.

  • Equipment is maintained by

    You

  • Contract length
    • 1–5-year contract
    • 1–3-month negotiation period
  • Claim Tax
    • Hire payments
    • Equipment depreciation
  • Balance sheet

    On

  • Additional benefits

    You can upgrade the equipment once the contract is complete

  • How to apply

    Contact your bank

Equipment loan finance (chattel mortgage)

A financier loans your business money to buy energy efficiency equipment.

  • Finance model

    Traditional

  • Project size

    More than $2000

  • Equipment is owned by

    You

  • Equipment is maintained by

    You

  • Contract length
    • 1–5 year contract
    • 1–3 month negotiation period
  • Claim Tax
    • Loan interest
    • Equipment depreciation
  • Balance sheet

    On

  • Additional benefits

    You can structure your loan term and repayments to suit your cash flow

  • How to apply

    Contact your bank

Capital lease finance

A financier buys energy efficiency equipment for your business and you pay it back over time.

  • Finance model

    Traditional

  • Project size

    More than $7500

  • Equipment is owned by

    The financier

  • Equipment is maintained by

    You

  • Contract length
    • 1–5-year contract
    • 1–3-month negotiation period
  • Claim Tax
    • Lease payments
    • Equipment depreciation
  • Balance sheet

    On

  • Additional benefits
    • You have the option to extend your lease, buy or return the equipment to the financier at the end of the contract
    • You can upgrade the equipment once the contract is complete
  • How to apply

    Contact your bank

Want more?

We have a team of people ready to guide your business through this process, and help you get started.

+61 3 8626 8781
sustainablefinance@sustainability.vic.gov.au