Energy prices have been rising rapidly in recent times, which has created a significant challenge for businesses. However, businesses can take advantage of various environmental certificates to reduce their energy bills and beat their energy price surge through the Victorian Energy Upgrades (VEU) program, by completing projects eligible for VEECs.
The VEU program was launched in 2009 to help Victorians reduce their energy bills and greenhouse gas emissions by providing access to discounted energy-efficient products and services. Under this program, large energy retailers need to buy a certain amount of energy savings each year and acquire and surrender Victorian Energy Efficiency Certificates (VEECs) to meet annual targets set by Victorian legislation.
Victorian energy efficiency certificates (VEECs) are electronic certificates where each represents one tonne of greenhouse gas emissions reduction (CO2-e) achieved through the installation of energy-efficient products or decommissioning of inefficient products. Once created, certificates can be sold to energy retailers with a liability under the program to surrender a certain number of certificates each year.
“The important thing about the VEECs is you actually get, when you calculate it and do it, you get the 10 years of savings effectively paid at that point in time when you register the VEECs.” – Hamish McGovern, Managing Director of Northmore Gordon.
VEECs have allowed energy efficiency systems to be registered and used and monetise those energy savings. Unlike the LGCs which are based on production, VEECs are based on forecast modelling. VEEC payments are much faster, around 16-18 months after commissioning as opposed to over a 10-year period for LGCs.
One of the primary benefits of VEECs is that they can help businesses save money on their energy bills. By investing in energy-efficient products and services, businesses can reduce their energy consumption. This will, in turn, reduce their energy bills. This reduction in energy bills can significantly impact a business’s bottom line and help them remain competitive during the energy price surge.
By providing these financial incentives, the VEECs are making it more affordable for businesses to purchase energy-efficient products. The products will, in turn, help businesses reduce their energy consumption and bills while providing a better environment for the employees and increasing productivity.
Sustainable Australia Fund (SAF)’s Environmental Upgrade Finance (EUF) provides up to 100% finance to help businesses fund their sustainable upgrades. Repayments made via local council rates with terms of up to 20 years.
EUF helps businesses to install energy efficiency systems by providing funding with no upfront costs and manageable repayments through rates. This makes the investment more financially viable. Furthermore, where these systems are eligible for VEECs, SAF can further increase savings by offering a lifetime loan discount of up to 2% off the interest rate, helping businesses beat the energy price surge.
The insights above are taken from Sustainable Australia Fund’s event – VEECs: How Businesses Can Beat the Energy Price Surge. For those who can’t make it, we have recorded it and provided access to watch or re-watch it again. This is to ensure we can help all businesses to reduce their energy costs and build a better future.
Watch VEECs: How businesses can beat the energy price surge
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