A win-win doing your bit for the planet while saving money!
Green loans come in a variety of options and typically many lenders are now offering products at a discounted interest rate. These loans originate from financial institutions who use the profits to invest in companies and industries worldwide that do no harm to the environment. They can be used for a variety of purposes such as:
- installation of solar panels
- addition of battery storage to your home
- upgrading appliances to energy efficient ones
- replacing hot water units to modern efficient heat pump units
- replacing old heating and cooling units
Fundamentally in principle these loans have a similar application process to other loan types, with servicing calculations and credit checks done. The main point of difference is the purpose of the loan and what the funds are used for.
The number of people purchasing a Hybrid or electric car is also growing fast, with these cars also enabling people to access green loans for the cost of the car purchase and having the wall charger installed. Again, many of these loans come with the added bonus of a reduced interest rate.
If you are lucky enough to have solar panels, the power from these will be used to charge the car when charging during daylight hours rather than feeding back into the grid a much more effective way of using that surplus power acting like a portable battery.
If you are in the process of building a home from scratch with a high energy rating you are in an ideal situation to explore the various options for these loans. Make sure you chat to your broker about what is available to you.
The benefits summed up you will be supporting the environment and making the greener, more energy efficient choices you will save money when you choose a green loan product.
