28.01.2022 – 08:30
In order for the energy transition to succeed, not only the economy is required, many homeowners also want to make a contribution to climate protection by switching to renewable energies for heat and electricity generation. However, energy-efficient refurbishment or structural measures to protect the environment are associated with additional costs that many people shy away from. “There are eco-credits that provide financial support in precisely this area,” says Marc Kloetzel, authorized signatory and head of sales at KVB Finanz.
Green credits to improve the ecological footprint
The recent flood disaster in Germany, high energy prices and shrinking fossil raw materials have further raised society’s awareness of the climate crisis. Switching to renewable energy sources such as sun and wind for power and heat generation is still considered a forward-looking solution. In contrast to fossil raw materials, no harmful greenhouse gases are produced here. According to the Federal Environment Agency, the share of renewable energies was already 19.3 percent in 2020 – and the trend is rising.
More and more private households and property owners want to make their contribution to climate protection and switch to an environmentally friendly energy supply. Because with appropriate measures, not only can the environment be protected, but also the wallet can be relieved in the long term. Energy costs have risen sharply and with more efficient use and optimal insulation, such expenses can be permanently reduced.
In addition to improved insulation, the installation of photovoltaic and solar systems is of particular interest to property owners. Such a system can use solar energy to generate electricity and heat. Depending on consumption and household, a photovoltaic system covers up to 80 percent of your own energy needs. If the internal requirement is lower, energy that is not required can be fed into the public grid for a fee.
Green credit options
Whether building a new property or renovating existing property, eco-friendly technologies cost money. According to the experience of KVB Finanz, costs in the five-digit range are not uncommon. So-called eco-loans can provide financial support. The scope and scope of such a loan depend on the respective lending bank. In most cases, however, eco-loans are used to convert to environmentally friendly heating systems such as pellet heating systems or wood-burning stoves, to install a solar or photovoltaic system on the roof or to couple the energy generated to a heat pump in the future. There are also loans that are used specifically to optimize thermal insulation or that are intended to facilitate the switch to environmentally friendly e-bikes and electric cars. So there are a variety of options and choosing a suitable loan is sometimes difficult. Of course, KVB Finanz supports its customers right from the start in deciding on the right eco-loan.
Strict requirements and conditions for an eco-loan
The voluntary commitment of real estate owners is an important building block on the way to climate neutrality. For this reason, eco-loans are tailored precisely to the needs of private individuals who want to promote climate protection with a more environmentally conscious lifestyle. Such a loan gains additional attractiveness due to the currently very low interest rates.
“Of course, such a loan is also subject to certain requirements and conditions,” summarizes Marc Kloetzel. An eco-loan must not be misused. This means that the financial support must benefit the environment and can only be used for the previously defined measures. If a borrower spontaneously decides to use the money elsewhere, there will be consequences. Both the planned use and possible consequences of misuse are specified in the contract. Depending on the contract, the borrower is given a certain degree of flexibility in the choice of construction measures. Here, however, it is important to examine the contract carefully in order to be able to safely rule out undesirable consequences.
Framework conditions for the conclusion of a loan
Before an eco-loan is approved, the construction project is carefully examined. The credit institutions also require regular proof during implementation. This can be, for example, the invoice from a craftsman or the acceptance confirmation after completion of the project.
Before taking out the loan, the borrower must also meet certain requirements. In addition to the age of 18 and a regular income, some credit institutions value permanent employment. The amount of the loan depends on many factors. Depending on the project, such a loan amounts to between 2,500 and 60,000 euros, but can also be higher. The repayment terms and the debit interest are contractually agreed. Smaller sums can be repaid within 12 months, for larger sums terms of up to 18 years are possible. As a rule, special repayments are conceivable and recommended, which ensure a certain flexibility when paying off.
Opportunity for further financial grants
Until now, private individuals have been able to take advantage of state funding opportunities for the energy-efficient construction of a new home and submit corresponding applications to the Federal Office of Economics and Export Control (BAFA). However, due to the flood of applications in January 2022, it was foreseeable that the funds provided would not be sufficient. For this reason, the approval of applications for federal funding for efficient buildings (BEG) from the KfW (credit institution for reconstruction) was temporarily stopped in January. Funding for new buildings is to be resumed as soon as appropriate budgetary funds are available. However, funding for the new construction of the Efficiency House/Efficiency Building 55 (EH 55) has been completely discontinued. However, renovations of existing properties can still be applied for.
What does this mean for private builders? The federal government and KfW are already examining an alternative to counteract liquidity bottlenecks for private individuals with projects ready for construction. A loan program for applicants whose applications have not been approved is under discussion. Incidentally, individual renovation measures, such as switching from heating with fossil fuels to more energy-efficient models, are not affected by the program stop.
KVB Finanz as a strong partner for the green home
“The large number of eco-credits from different banks makes it difficult for many private individuals to keep track,” says Mark Kloetzel, authorized signatory and head of sales at the credit broker KVB Finanz. So that such a loan does not become a burden, especially with the current cessation of KfW funding, it must match the individual requirements of the borrower exactly.
The desire for a greener home should not fail because of the selection of the right eco-loan. Even the temporary halt to KfW funding for energy-efficient buildings does not have to mean the end of the renovation or construction project. On the contrary, climate-friendly living is becoming more and more important, so a speedy decision on the future of the subsidy can be expected.
More than ever, it makes sense to get advice from an experienced credit broker like KVB Finanz. The decision is then made together in favor of an eco-credit, which takes into account the personal financial situation of the borrower and thus enables the desire for a greener home.
About KVB Finanz GmbH
Since it was founded more than 45 years ago, the Kloetzel family and KVB Finanz have primarily stood for finding the best financing concepts, individually tailored to the needs of their customers. For the traditional family business, their customers and personal contact with them are the absolute focus. Fair conditions, professionalism and a sense of responsibility are the top maxims. From families for families, KVB Finanz always thinks and acts in terms of generations.
KVB financial services company mbH
Original content from: KVB Finanz, transmitted by news aktuell