Rate Rebates for Building Energy Performance Upgrades

City of Melbourne - 2025

SPR was engaged by the City of Melbourne to design and assess the feasibility of a rates rebate program to drive energy benchmarking and performance upgrades in mid-tier office buildings. SPR delivered the work in stages, beginning with a review of comparable programs nationally and internationally, and targeted stakeholder engagement with program managers, industry representatives, and Council officers. The resulting program model takes a sequenced approach, with three linked activities, benchmarking, detailed auditing and tuning, and upgrade implimentation, to progressively engage owners and direct deeper support toward those most likely to act.

The project explored potential program designs, eligibility and assessment criteria, rebate structures, and administrative requirements, with the aim of identifying a model that is both effective and practical to implement. SPR analysed local building stock characteristics and energy performance data, and drew on the experience of comparable programs in Australia and overseas to deliver detailed cost–benefit modelling for different design options. The analysis considered impacts on emissions, building operating costs and rental uplift alongside the potential financial implications for Council. The final report provides a clear evidence base to guide policy decisions on whether and how a rates rebate scheme could form part of the City’s broader decarbonisation strategy.

City of Melbourne - 2025