Sector: Retail (CNI)

Address: 103-105 Deakin Avenue Mildura VIC 3600

Environmental upgrade: 99kW Solar PV system

Key drivers: Reduce energy costs

Interaction with SMF: Engaged SMF to finance EUA under a fixed rate arrangement

 

Problem

How can a tenant renovate its premises in a way that benefits both the business and its landlord, at no cost?

Ritchie’s Mildura is a local IGA supermarket located in the Rural City of Mildura, Victoria. The business leases their premises, from an unrelated party. With an interest in reducing its power bills, Ritchie’s was keen to install a solar system. But would the cost be worth it? If permanently fixed to the roof, the solar system would provide no long-term benefit if Richie’s moved locations.

Solution

If prospective works to a building provide an environmental benefit, capital can be accessed via an EUA (Environmental Upgrade Agreement). In this case, an EUA would give Ritchie’s the finance for a bespoke solar system that would cut power bills – without any upfront, out-of-pocket expense.

Process

Securing an EUA was simple. SMF (Sustainable Melbourne Fund) completed all the paperwork and financed the landlord the capital it required. SMF also locked in a long-term fixed rate, giving Ritchie’s the ability to calculate its energy consumption in relation to cost, minimising risk. The EUA also enabled the landlord to own the system and improve the building and recoup the expense from the tenant via the EUA.

Outcome

Building upgrades via an EUA provide win-win benefits for both tenant and landlord. The asset improves in value, while a business saves on energy costs without encumbering its balance sheet.

Download the Case Study.

 

Ritchie’s Supa IGA

“Power has gone up almost 15 per cent for us,” Ritchie’s Mildura store acquisitions and project manager Paul Papson says. “An EUA is great because it helps with the higher price of power.”

Other Success Stories

Hussey & Co

Hussey & Co is a lettuce farm on the Morning Peninsula that delivers quality produce to Australia and overseas. With four acres of land, multiple sheds and industrial processing facilities, it relies heavily on energy to stay in business…

READ MORE

Rye Hotel

Peter sees that the long term Environmental Upgrade Agreement (EUA) has resulted in a 25% saving on existing accounts. This enables Peter to use savings to make repayments as well as funnel dollars back into the business….

READ MORE

Want to Know More?

Find out if you qualify for an environmental upgrade finance agreement. Complete the form below.

My planned upgrade includes:

Sustainable Australia Fund

Look Up Your Address
Please enter your business street address, or council, so we can check if our finance is available there.

Enquire Now

Complete the form tand one of our experts will be in touch