What is an energy loan?
An energy loan from a bank or financial institution, also known as a green loan, is a variant of a renovation loan. With this loan, a home is also being renovated, but here it is from an energy-saving point of view. For example, a loan for solar panels is a green loan.
Banks want to promote these environmentally-friendly initiatives, which is why the interest on an energy loan is lower than on an ordinary renovation loan. Usually we work here with personal installment loans and not with mortgage loans.
In addition to the fact that an energy loan or green loan has a low interest rate, there are also benefits associated with energy-saving investments. This way you will get a lower energy bill, which may be very welcome given the high energy prices. The value of your home also increases, which can then be useful for a later sale or lease. For example, you can apply for a loan for solar panels and discuss this on your electricity bill.
However, these energy-saving investments can be quite expensive. So if you prefer not to use a large part of your savings account, a green loan can help you with this. You then have enough money from the start to pay for your investments and pay back at your own pace. That is why it is useful to compare energy loans. This way you can find the cheapest green loan on the Belgian market!
What is the maximum amount of an energy loan?
Most banks give you the option to borrow between € 1,250 and € 100,000. You must then repay this within 6 and 120 months. So you have enough money available to cover the costs associated with energy-saving investments.
For which projects can I use a green loan?
You can of course use an energy loan to implement energy-saving measures. But what exactly is seen as an energy-saving investment? For this, it is best to contact your bank to check whether they do offer a green loan for the works that you want to perform. However, most banks do offer energy loans or green loans for the following renovations:
Roof insulation, floor insulation and other insulation. A loan for solar panels, solar water heater and heat pump also fall under the green loans.
There are also banks that offer energy loans for measures that better protect your home against burglary or fire. However, this is not the case with all banks. So definitely ask this.
Are there any other things that I can apply for an energy loan for?
At most banks it is possible to apply for an energy loan for other renovations that are not energy-saving. For example, if you need a new kitchen or bathroom, you can use an energy loan for this. The construction of a swimming pool can also be financed with an energy loan.
However, you must bear in mind that when you take out an energy loan, most banks require that at least 75% of the investments are energy-saving investments. The banks therefore also expect that you can submit quotes or invoices that show that at least 75% of the money borrowed is used for energy-saving measures.
However, do you only want to renovate your kitchen? Then it is better to apply for a renovation loan. This loan allows you to renovate your home without the obligation that you do so by taking energy-saving measures.
Can I deduct an energy loan from my taxes? What is a Flemish energy loan?
The federal government grants you a tax reduction for certain environmentally friendly investments. However, it is important to keep checking this; the premium can vary from year to year. In Belgium you can receive a discount on your property tax for environmentally friendly renovations.
There is also such a thing as a Flemish energy loan. These loans are paid out by the ‘Energy Houses’ of municipalities. They decide whether you will be granted the loan or not. Specific conditions apply here: only a number of energy-saving investments are eligible. You must live in or rent out the property. Also the maximum amount that you can borrow is usually a bit lower than with normal green loans. Please note: this option currently applies to everyone until the end of 2018. From 2019 only the priority target group and legal entities will be eligible for a Flemish energy loan.
In addition to a green loan, can I also claim premiums?
Because people want to promote environmentally friendly investments, it is possible to claim premiums through your network manager. These premiums can be very interesting. It is therefore best to inquire about the possible premiums for the current year. On our blog you can find some articles about renovation premiums.
What conditions must I meet to apply for an energy loan?
Besides the general conditions of a personal loan you here can find, keep still account for an energy loan with another condition: you should only use a green loan to finance energy-saving work as a loan for solar panels. Sometimes the projects are specified by the bank itself. You must therefore be able to submit to your bank tenders or invoices that prove that you will actually use the money from the energy loan to finance energy-saving investments.
There are, however, certain banks that make exceptions to this. For example, it is possible for some banks to apply for energy loans where it is sufficient that at least 75% of the borrowed amount is used for environmentally friendly works. You can then spend the other 25% on other things, such as redesigning your garden or a new veranda. Some banks also offer you the option of securing your home better against burglary or fire with a green loan.
Are there options for reducing the costs of my investments?
Just like with a renovation loan, you can reduce your costs. After all, it is difficult to estimate in advance exactly how many energy-saving renovations you are going to choose. This can result in you borrowing the wrong amount which can be disadvantageous. If you borrow too little, you may get into trouble, but if you borrow too much, you must repay more than you should have.
The best way to prevent this is to request quotes. Most contractors are willing to offer you quotes free of charge and without obligation. This allows you to find the contractor with the best price and you know exactly how much you would best borrow.
How do I find the cheapest green loan?
To find the best energy loan it is important to compare these loans. You do this best on the basis of the Annual Cost Percentages. On this website you can place several green loans next to each other for free and find the loan that best suits your needs. So do not hesitate any longer and get started with our result table so that you can quickly make your home energy-friendly!
How do I apply for a green loan for solar panels, for example?
Due to rising energy prices and climate changes, more and more people are interested in purchasing solar panels. However, this green and economic way of generating energy has a price tag. Fortunately, there are several ways to finance this investment that you do not have to immediately claim from your savings account. For example, a green loan for solar panels can offer a solution. On OneTopNotch you can easily and quickly find the cheapest energy loan. All you have to do is click on the orange button at the top of the page and choose the green loan that suits you best. On the left side of the page you can update and personalize the various criteria. You can then click further on the page of the bank where you are applying for the loan.