Energy Credit to Fund Your Projects
Are you planning projects to improve the energy efficiency of your home? An energy loan could cover your expenses.
Discover the energy credit, its benefits, and conditions for eligibility
In both new construction and renovation, it’s important to consider energy expenses. On one hand, you’re helping preserve the planet. On the other, you save on hefty monthly bills. However, it’s clear that these improvements are quite an investment. This is why the energy credit was established. With this scheme, you benefit from an energy-efficient and perfectly comfortable home.
What is an Energy Loan?
Also called a green loan, the energy credit is offered by banks and lending institutions to finance energy-saving projects. The rates applied range from 0% to 2% for capital that allows you to cover several projects at once.
It’s true that taking an energy loan incurs expenses since you commit to repay it according to the agreed terms. However, it gives you access to numerous advantages:
– Investing in energy-efficient equipment ensures you have a cost-effective home. Your bills will automatically decrease, which is great for your finances. In case of sale or renting, energy-saving projects represent a significant added value;
– Submitting a green loan application offers the chance to enhance comfort. You can address insulation issues, acquire better heating equipment, etc.;
the projects funded by the energy credit are beneficial to the planet since they help control environmental impacts.
How to Obtain an Energy Loan?
Obtaining a loan to finance energy renovation projects is not automatic. The lender carefully assesses the borrower’s profile. They evaluate your ability to repay the loan based on income. However, note that there’s no minimum income requirement to be eligible for this credit.
Moreover, the green loan is part of what we call “assigned credit.” It can only be granted for financing energy improvement projects. That’s why banks request copies of estimates before approving or rejecting the application.
Additionally, there are “eligible” projects for the green loan. These include those aimed at reducing energy consumption. Relevant projects include:
– Insulation work (roof, walls, windows…)
– Replacing glazing with models that limit heat loss
– Installing a heat pump or any other energy-efficient heating system
– Installing ventilation solutions ensuring good energy performance for your home
– Adopting renewable energy sources (solar panels, for example)
– Purchasing and installing water-saving equipment
– Acquiring a programmable thermostat
– Replacing the existing lighting system with energy-saving products
– Conducting an energy audit
– etc.
The green loan can be requested for projects intended for either your primary or secondary residence. In both cases, it is essential that the work is executed by professionals. Therefore, you cannot request a green loan if you plan to renovate your home yourself.
Choose the Offer That Suits You
Most banks in Belgium offer the green loan. But be cautious, not all offers are equal. It’s recommended to perform a simulation to find the best rate. Similarly, you should compare several proposals. What conditions are imposed by the bank? What is the maximum amount you can obtain? What are the repayment terms (loan duration, monthly payments, etc.)? Can the loan be repaid early? What percentage of the green loan must be allocated strictly to energy renovations? These are just a few of the right questions that ensure optimal budget control. Indeed, an overly high offer could cause complications in your management, while an overly attractive proposal might hide conditions that escape you.
Do not rush. The best way to make the right choice is to simulate and then compare. Note that the proposals you receive do not commit you until you sign a contract. You are therefore free to choose the lender whose offer best meets your expectations.
Simulate your construction loan or your renovation loan online without obligation.
