EUAs – an attractive way to upgrade building stock

Environmental Upgrade Agreements (EUAs), an initiative of the NSW Government, provide an attractive mechanism for financing upgrades to existing commercial, industrial and nonresidential building stock.

Originally launched in NSW in 2011 EUAs are now available in the Hunter through Newcastle and Lake Macquarie councils.

Simply put, an EUA is a finance mechanism which provides 100% funding for upgrade works associated with energy, water and waste efficiency projects. The funding is provided via a loan product offered on extremely attractive terms, including up to a 20 year repayment period, a fixed interest rate below that of typical property loans and where tenant savings can be passed through to help service the loan repayments. All this with no deposit or upfront capital required from the building owner.

The scheme can be used to finance a wide variety of building upgrade projects, such as:

• Heating and cooling plant upgrades/retrofits

• Lighting retrofits

• Renewable energy systems (solarPV / wind)

• Building management system upgrades

• Installation of water saving equipment

• Facade and shaping upgrades

• Glazing upgrades or treatment films

• Insulation upgrades

• Lift motor upgrades

• Waste and recycling sorting/collection systems

EUAs are administered by the local council and finance is provided by a participating financial institution. Loan repayments are then collected quarterly via the normal council rates process as an EUA levy and passed on to the financial provider, meaning the loan is tied to the land value and can be passed on with the sale of a property.

Example of EUA finance*: