Plumbing Connection Autumn 2016

28 / 116

2 8 PLUMBING CONNECTION AUTUMN 2016
Greenbank Environmental
The Local Government (Building Upgrade Agreements)
Amendment Bill 2015 is designed to overcome barriers to
environmental upgrades of existing commercial buildings –
upgrades that can reduce costs for tenants while improving
the carbon footprint and environmental performance of
existing buildings.
“This Bill has the potential to create hundreds – if not
thousands – of important jobs and free up more than half a
billion dollars in potential CBD capital investment,” Climate
Change Minister Ian Hunter says.
“It clears the way for building owners to begin revitalising
our ageing building stock, which will have the added benefit
of advancing our plans for Adelaide to become the world’s
first carbon neutral city.
“For commercial property owners, building upgrades can
reduce operating costs, increase yields, help attract and
retain tenants and improve asset values.
“Benefits to tenants include net
reductions in operating costs, improved
indoor amenity, staff productivity, and
contributions towards corporate social
responsibility goals – not to mention
greenhouse gas savings of up to 32%.”
The Property Council of Australia’s SA
executive director Daniel Gannon says
the legislation will lead to a number of
benefits, in particular to tradespeople.
“The Building Upgrade Finance
mechanism makes economic sense, not
only for building owners and occupiers
as a means of managing their utility
costs, but for the businesses that can
provide the clean technologies and
solutions (particularly hot water and
lighting upgrades) that lift building performance,” he says.
“Financing such upgrades through Building Upgrade
Finance may offer a number of benefits compared to other
forms of traditional finance – the potential is limitless
and could be applied to offices, shopping centres, hotels,
healthcare facilities, university buildings, factories, and
warehouses.”
HOW YOU CAN BENEFIT
“These state schemes are really set up to make energy
efficiency more affordable,” Ben says.
“The idea is that contractors can design and install an
energy efficient system for $X, knowing that they’ll earn a
number of certificates from the replacement of the existing
system, which can then offset the cost.
“This means they can give a ‘discount’ to the property
owner.
“Once the system is installed, the contractor can come
to Greenbank, which will create the certificates, and we will
buy them from the contractor. Of course, the home owner
could do this themselves, but that is rare, with the installer/
contractor acting on the property owner’s behalf.”
Greenbank is Australia’s largest environmental certificate
creator and trader. It essentially acts as an ‘aggregator’,
purchasing RECs, VEECs and ESCs from contractors and
property owners then selling them in large bundles to
retailers to offset their liability
“Greenbank essentially provides installers with practically
instant cash flow. Once we receive the signed forms and
mandatory supporting documentation, we pay within 24
hours when our customers use our online REC portal and
phone app.
“Once we have purchased the certificates, we adopt all
compliance and pricing risk. That’s why a service like ours is
very appealing to installers. They don’t have any compliance
risk of the regulator saying something was filled out wrong
and contractors have to go back to the
site.”
Ben says about 95% of solar installers
already claim RECs, but a large number
of hot water and lighting installations
haven’t been subject to a claim.
“A lot of credits are just going to
waste.
“Installers need to understand that
they can use these certificates as a
sales tool. You can reduce the cost to
customers without losing any income. Of
course, because the certificates trade
on the market, the price fluctuates, so
that’s a risk you’ll need to manage.
“However, you have 12 months after
a solar system has been commissioned
to create and sell the certificates, so you can study price
fluctuations the same way you would the stock market and
sell when the price is high.”
Ben notes that installers can generate their own
certificates, but it’s a lot of work – to the point where the
value of the certificates is negated.
“It’s so much easier to come to a company like ours.”
The process is simple, he says. Contractors can simply set
up an account with Greenbank online. Claiming RECs after
opening an account can also be done online or via an app.
Given the increasing pressures facing tradies, remaining
competitive and maintaining a steady cash flow is
imperative for survival. As you are already installing energy
saving systems, why not use all the tools at your disposal?
As Fiona says: “Where else can you get thousands of
dollars for six pieces of paper?”
FOR COMMERCIAL
PROPERTY
OWNERS, BUILDING
UPGRADES CAN
REDUCE OPERATING
COSTS, INCREASE
YIELDS, HELP
ATTRACT AND
RETAIN TENANTS.
RENEWABLE ENERGY CERTIFICATES