Exploring various funding schemes, such as government grants and revenue opportunities from environmental certificate generation, can prove advantageous for companies seeking to offset energy efficiency or renewable energy project costs.
By carefully considering external funding and scheme options during investment decision-making, companies can not only expedite project approvals but also build a sustainable commercial pipeline for delivering energy projects.
A range of Australian federal and state government environmental schemes are available, providing businesses with financial incentives to invest in energy efficiency or renewable energy projects.
If your business is a large user of electricity, gas or a mixture of both, our energy experts are uniquely positioned to assist you to understand and navigate these schemes and help you find ways to offset the costs of implementing energy projects.
Large-scale generation certificates (LGCs) are created by the Australian Government as part of its Renewable Energy Target (RET), a scheme designed to reduce greenhouse gas emissions in the electricity sector and encourage the generation of power from sustainable and renewable resources.
Large-scale Generation Certificates (LGCs) incentivise investment in renewable energy power stations, such as wind and solar farms, and hydro-electric power stations, by legislating demand for Large-scale generation certificates (LGCs).
Tradeable certificates, known as small-scale technology certificates or STCs, are created under the Small-scale Renewable Energy Scheme (SRES) which creates a financial incentive for installing solar power and other renewable energy systems.
While STCs are most commonly created following installation of solar PV – heat pumps, solar hot water, micro-hydro and small wind systems can also qualify. The total number of certificates that can be created for an eligible small-scale renewable energy system is determined by geographical location, the amount of electricity it generates and the date of installation.
Offset your emissions and meet your environmental targets with carbon credits. Carbon credits are a recognised mechanism for investing in projects that contribute to reducing the amount of greenhouse gases in the atmosphere.
Australian carbon credits, known as Australian Carbon Credit Units (ACCUs), are issued by the Federal Government’s Clean Energy Regulator for eligible activities under the Carbon Farming Initiative regulations. Each ACCU represents one tonne of carbon dioxide equivalent (tCO2e) stored or avoided by a project.
The ESS Scheme creates Energy Saving Certificates (ESCs) which provide NSW businesses with financial incentives to invest in projects which will reduce their energy consumption.
Businesses benefit from certificate schemes by reduced upfront costs for purchasing or upgrading highly efficient equipment and appliances. These upgrades also help to reduce energy bills in the long term.
Shell Energy is an Accredited Certificate Provider (ACP) in the ESS scheme.
Victorian Energy Savings Certificates (VEECs) are created when certain energy efficiency activities are undertaken, such as new installations or projects that deliver energy savings.
Applied as a discount to the upfront capital cost, VEECs generated as part of a project, can help businesses achieve shorter payback periods and can be invested into their next energy-saving project.
Our energy solutions experts can help you understand funding options for your next renewable energy or energy efficiency project. We leverage our market insights, data analytics, and expertise in energy efficiency to help you combine funding tools such as government grants, and even help you generate environmental certificates, at project completion, to further offset costs.
A range of government grant programs are available to assist companies with funding energy efficiency projects. Visit energy.gov.au for details on federal grants, and also explore each state’s grant programs. Grant programs are updated constantly so make sure you’re aware of the energy grants that may be available for your business.
Corporate Power Purchase Agreements (PPAs) help commercial and industrial energy users to reduce the power grid’s reliance on traditional coal-fired electricity through investment in renewable energy generation and developments.
A corporate PPA is one approach to attempting to manage energy price risk and achieving renewable or sustainability objectives. Deciding whether a PPA is appropriate for your business requires a thorough assessment of your requirements, risk appetite and the available products in market.
Sustainability financing options provide businesses with a range of ways to finance environmentally sustainable projects or investments. Explore the green business loans and other funding solutions your financial institution may offer.
Find out how funding schemes can help offset your project costs
13 April 2023
STCs: Tradeable certificates that are created under the Small-scale Renewable Energy Scheme (SRES) which create a financial incentive for installing solar power and other renewable energy systems
18 August 2022
If your business is committed to carbon reduction and has real estate for solar panels on its roof or land, then a solar PPA might be worth considering.
