7 ways tenants AND landlords can save with solar

If you’re a commercial tenant, you might think solar is out of reach. Getting your landlord to agree to costly building upgrades may seem like an insurmountable challenge.  

If you're a landlord, you might be wary of the risks, or not see the benefit of building upgrades when you're not the one paying for the power bill. 

However, building upgrades such as installing solar can have huge benefits for both tenant and landlord. Here we break down the top reasons why solar and building upgrades are a win for both parties when they use Environmental Upgrade Finance to pay for it.  

Win for tenants: Immediate electricity bill savings 

We’ve crunched the numbers, and our clients save an average of $37,123 off their energy bill each year 

Over the life of the solar system, these businesses have saved an average of $928,091. 

Our finance terms are designed to be cashflow positive, which means businesses will see savings from the very first year the system is up and running. That means more cash to put back into marketing how green your business is, or just to keep in your pocket for a rainy day.  

Win for landlords: Improve the value of your asset and retain high value tenants

Using our finance, you can make significant building upgrades with no or minimal cashflow implications. This builds long term value of your asset, as well as attracting and retaining high value tenants.  

Our finance can be used for solar as well as any other upgrades that improve efficiency or reduce waste. If your building needs upgrades to retain tenants, comply with regulations and continue to grow in value, our finance is an easy option that requires no cash or capital to access.  

Impact Investment Group used our finance to make improvements to a heritage listed office building at 401 Collins Street and bring it into the future. Once the improvements were made, they were able to attract and retain a 15-year lease with coworking company, WeWork. 

Win for tenants: Opportunity to modernise

Relocating to a more modern building might seem appealing if your current building is old and out-of-date. However moving can come with a whole host of costs and headaches. Our finance can help bring your building into the future so you don’t need to relocate. 

Solar isn’t the only building upgrade our finance covers.  Our finance can be used to:  

  • Remove asbestos 
  • Replace a roof with a cool roof or green roof 
  • Upgrade windows with double glazed glass 
  • Replace lighting with LEDs 
  • Improve building insulation 
  • Install building management systems  

Plus much more! If it has a positive environmental benefit, it’s likely to qualify.  

Our finance is a low-cost way for landlords to access capital and improve their asset. We can help you approach your landlord to suggest any building upgrades you think will help your business save money and keep you in the building for longer.  

Win for landlords: You own the asset from day 1

The tenant pays for the solar system, but you get to keep it. Sounds too good to be true, right?  

But with Environmental Upgrade Finance, the repayments for solar can be passed along to the tenant (with tenant permission), and a cashflow positive project means the repayments will cover the entire cost of the system. 

Environmental Upgrade Finance is the only type of loan that covers 100% of the project, including both hard and soft costs. You pay $0 up front to install the system. 

Repayments for building upgrades that improve efficiency and reduce waste can also be shared with your tenant. This could include HVAC upgrades, building insulation, waste projects, lighting replacement and more. 

Win for tenants: You don’t need to wait for the end of your lease

The good news for tenants in the middle of a lease is that our finance makes it easy to pursue an upgrade at any time.  

You might think the only time to negotiate new terms is at the end of a lease. Because the tenant is making repayments on behalf of the building owner, this would usually mean a renegotiation or addendum to an existing lease.  

However, we have documentation that enables upgrades to be pursued without updating the current lease agreement in place. This allows a tenant at any stage of their lease to install solar and start reducing their energy bills.  

Win for landlords: No capital, personal or business security required

One reason why landlords might be hesitant to install solar or make other building upgrades is cashflow considerations or the idea of entering into a business loan.  

However, the unique structure of Environmental Upgrade Finance means that no capital or upfront cash is required to finance the upgrades using favourable terms.  

This type of finance is tied to the building, not the owner. Loans are designed to be cashflow positive so that the system pays for itself over a period of up to 20 years. By tying the loan to the building and not the owner, lenders such as Sustainable Australia Fund are able to offer competitive finance terms without additional personal or business security.  

Not only that, but if you sell the building, the loan can be transferred easily to the new owner.  

Win for tenants AND landlords: Tax benefits

If you’re a tenant seeing your energy bill rise year after year, solar can help give you greater energy security. Plus, the repayments on the system can be considered an outgoing, since this is a charge on the property like the rates. 

There are also tax incentives that landlords can take advantage of when installing solar, such as depreciation and asset write offs.  

You should speak to your tax specialist for what tax benefits you can access when installing solar as a tenant or a landlord.  

Our finance + government rebates

For a limited time, businesses can access the Solar Victoria rebate of $3,500 towards a solar system. You may also be able to access the Small Business Energy Saver Program for upgrades that improve efficiency or reduce waste, such as HVAC, refrigeration, or equipment upgrades. 

Our finance works alongside government rebates and savings programs, so that you can take full advantage of cost savings and cover the rest with our finance. Note that the minimum loan amount is $5,000. 

If you're interested in applying for the Solar Victoria rebate along with our finance, you can submit an expression of interest form here.

Eligibility

Before applying for our finance, make sure your business is eligible.  

The property must be 

You can find a full list of eligibility criteria here. 

Can a tenant apply directly?

While a tenant can obtain quotes and chat to us about potential projects, the application itself will need to be made by the owner of the property. If you are a tenant, we can help you speak to your landlord about the benefits of using our finance and assist them through the application process. 

Questions?

If you have questions about our finance or how it might work in tenanted properties, you can visit our FAQs page, email us or give us a call 

 

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      $3,500 SOLAR FOR BUSINESS REBATE
      The Solar for Business Program is now live! You can cover additional costs to install solar using our finance.

      Register your interest for Environmental Upgrade Finance below, and we will be in touch to discuss your project. Limited grants are available, so apply today to ensure you don't miss out!