Charter Hall office building aglow with lighting upgrade

Case-study summary

This historical case study records the project, delivery approach and reported results behind Charter Hall office building aglow with lighting upgrade. It has been reorganised for clearer reading and linked to current Northmore Gordon guidance so the project evidence can be used without treating an earlier result as a present-day quote.

Evidence note: The source page is dated March 28, 2019. Figures, scheme names, equipment assumptions and client circumstances belong to that project period. Opportunities, targets and forecasts remain distinct from implemented or verified outcomes, and current eligibility should be checked before using the case as a new-project benchmark.

Project record

The Client

Charter Hall owns a large portfolio of buildings in Australia and is now one of Australia’s leading property groups with a total managed property portfolio of $21.9 billion.

They own and manage 336 commercial properties around Australia including office buildings, supermarket anchored retail centres – and a rapidly growing stable of industrial assets on behalf of institutional, wholesale and retail investors.

The Work

Charter Hall was interested in finding out the best way to save on energy bills and increase their energy productivity. By working with an installation business Gerard Professional Solutions for LED lighting and Northmore Gordon for certificates, Charter Hall upgraded over 900 light fittings in its property on Queens Road, Melbourne.

Key Facts

Challenges

complex

certificate process

Outcomes

Queens Road, Melbourne

reduced through certificates

A leading Australian property investment and management company with a diversified portfolio across office, retail, industrial, and social infrastructure sectors.

Using the results for a new project

Start with the site's current operating profile, asset condition and business objective. Define the baseline, project boundary, variables that affect energy use and the evidence available before selecting a technology or incentive pathway. This makes the comparison auditable and keeps physical savings separate from grants, certificate revenue and other financial benefits.

For a comparable project, confirm current program rules and product requirements, document installation and commissioning, and plan post-project measurement early. Historical results can show what was possible in one setting, but they do not establish current eligibility, pricing, payback or emissions outcomes.

Why did Charter Hall pursue a lighting upgrade at its Queens Road property?

Charter Hall faced rapidly rising electricity costs and sought to reduce energy consumption while improving workplace conditions. The lighting upgrade offered a dual benefit: immediate operational cost savings through reduced energy usage and enhanced workplace safety and brightness for tenants. By partnering with Northmore Gordon and Gerard Professional Solutions, Charter Hall accessed Victorian Energy Efficiency Certificates to help fund the project, making the investment commercially viable with a payback period of less than three years.

What made the Victorian Energy Upgrades program suitable for Charter Hall's lighting project?

The Victorian Energy Upgrades (VEU) program supports eligible lighting improvements through Victorian Energy Efficiency Certificates (VEECs) created by accredited providers. Charter Hall's LED lighting upgrade at 5 Queens Road qualified under VEU's prescribed activities for lighting retrofits, generating $5,000 in certificate value. This pathway was appropriate because prescribed activities have defined equipment requirements and standardized eligibility criteria, reducing complexity compared to project-based assessment methods and allowing faster certification.

How did Northmore Gordon support Charter Hall's energy efficiency project?

We provided environmental certificate services to help Charter Hall access Victorian Energy Efficiency Certificates for the lighting upgrade. This involved assessing activity eligibility, verifying equipment specifications, confirming measurement and installation evidence, and supporting the certificate creation process. By managing the certificate pathway, we reduced complexity and helped Charter Hall realize $5,000 in certificate value, improving the project's financial case alongside the $10,000 in annual energy savings delivered by the upgraded LED fittings.

What were the key financial outcomes of the Queens Road lighting upgrade?

The project delivered $10,000 in annual energy savings from reduced electricity consumption and $5,000 in certificate value from Victorian Energy Efficiency Certificates. Combined, these contributions supported a payback period of less than three years on the capital investment in LED lighting upgrades. The financial benefits demonstrate how modern lighting technology, paired with appropriate scheme support, creates attractive returns for property owners managing energy costs across diverse commercial portfolios.

Why is accurate baseline data important for lighting efficiency projects like Charter Hall's?

Baseline energy data establishes the reference consumption before equipment changes, enabling reliable calculation of energy savings and certificate eligibility. For lighting retrofits, meters and operating records must clearly show the existing consumption profile and the post-upgrade reduction. Charter Hall's upgrade of over 900 light fittings required documented evidence of the original equipment, installation dates, and commissioning records to support both the $10,000 energy savings claim and the $5,000 certificate value. Accurate baseline assessment protects project credibility and ensures certificate compliance.

What operational advantages accompanied the Charter Hall lighting upgrade beyond energy savings?

Beyond the $10,000 annual energy savings, Charter Hall achieved improved workplace conditions including enhanced brightness and safety for building occupants. The rapid installation by Gerard Professional Solutions minimized operational disruption across the commercial property. These non-financial benefits—better lighting quality and reduced tenant complaints about dim or aging fixtures—support tenant satisfaction and retention, particularly important for a diversified property manager serving multiple tenants and investors across its $21.9 billion portfolio.

How does a lighting upgrade demonstrate the broader value of environmental certificates for commercial property owners?

Environmental certificates like VEECs provide revenue that improves project economics by offsetting capital costs, making energy upgrades financially attractive even on tight payback timelines. Charter Hall's experience shows that combining engineering improvements (LED technology delivering measurable kilowatt-hour reductions) with scheme support (certificate revenue of $5,000) creates resilient business cases. This two-part approach reduces reliance on energy savings alone and enables property managers to fund upgrades across large portfolios while maintaining disciplined capital allocation.

What eligibility factors must be verified for lighting projects under Victorian Energy Upgrades?

Lighting projects under Victorian Energy Upgrades must meet prescribed activity requirements including specific equipment specifications, site and premises eligibility, and measurement protocols. Charter Hall's project required documented evidence of the existing lighting system, the new LED equipment specifications, installation completion, and commissioning records. The activity must also comply with Victorian Government specifications and Essential Services Commission approval scope. Accredited providers verify these conditions before creating VEECs, ensuring certificate validity and protecting both the property owner and the scheme's integrity.

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