Green loan: Renovate using an energy credit
What is green credit?
Unlike cash credit, green finance is a form of loan offered by many financial institutions for a specific purpose. It can be used to carry out works or installations which aim to achieve energy savings. The loan therefore covers the purchases and works carried out in this context. Each bank draws up a list of investments that it agrees to take into account as part of a green loan. It is therefore essential to check the categories of work supported according to the chosen establishment.
What does green financing cover?
The green credit can be carried out for certain works or certain equipment the primary purpose of which is to improve the energy efficiency of a dwelling. The list may vary from bank to bank. Generally, the following works and installations are eligible:
- Heat pump installation
- Changing the heating system
- Installation of a solar water heater
- Development of a green roof
- Installation of solar panels
- Installation of high performance glazing
- Work on the ventilation system or insulation
- Installation of thermostatic valves
- Installation of a rain collection system
Other services can also be included in the green financing:
- Energy Performance Diagnosis (DPE)
- Installation of a geothermal heating system
- Work to prevent fires and intrusions
Should we use all of the green credit for specific energy efficiency work?
The energy credit granted by banks must be used up to a minimum percentage for work related to energy efficiency. But this rate varies from one establishment to another. The unused balance can then be spent on other renovations not indicated in the bank's eligible list (for example: to renovate the kitchen or the bathroom ).