On 16 May 2012, the Victorian Government (through the Essential Services Commission) introduced commercial lighting upgrades as a prescribed activity for the creation of Victorian Energy Efficiency Certificates (VEECs) under the Victorian Energy Efficiency Target (VEET).

This means there is financial incentive for owners or tenants of commercial premises to retrofit their premises to include energy efficient lighting. Certificates are created on a ‘deemed basis’ (i.e. the lifetime savings are created upfront, generally for up to ten years). The certificate value will lower the upfront costs and reduce the payback time of the upgrade.

The Government has announced last week the introduction of a Carbon Price. A carbon price is a price on pollution. The Government proposes this is the cheapest and fairest way to cut pollution and build a clean energy economy. They advise this is the best way to stop businesses polluting and get them to invest in clean energy is to charge them when they pollute.

The two-stage plan for a carbon price mechanism will start with a fixed price period for three to five years before transitioning to an emissions trading scheme.

The Government has intoduced tax breaks from 1 July 2011 for businesses that improve the energy efficiency of the commercial buildings they own. Businesses that undertake capital works to improve the energy efficiency of their existing buildings – from 2 stars or lower to 4 stars or higher – will be able to apply for a one-off bonus tax deduction.

Buildings account for 19% of national energy use – with commercial buildings alone accounting for approximately 10% of Australia’s emissions.