Renovating To Become More Energy Efficient
With the rising costs of essentials like electricity, food, and petrol, securing a low and stable energy bill would offer great peace of mind. Energy-efficient upgrades—such as solar panels, EV charging stations, or heat pump water systems—seem like a no-brainer, but the main obstacle is the upfront cost.
Fortunately, there are several ways to finance these upgrades, including personal loans, green loans, leases, and PPAs. When interest rates were lower, at around 2%, these options were more accessible. But in today’s higher interest rate environment, it’s crucial to carefully evaluate your financing options.
Green Loans: A Smarter Alternative
Many banks now offer discounted interest rates on energy-efficient purchases, such as solar panels, battery storage, and energy-efficient hot water systems. Here are a couple of common options:
Green Loan Secured Against Your Home:
By combining a green loan with your home mortgage, you could secure an interest rate as low as 3.99%, making this an affordable option.Green Home Loans:
This is an even better option. A green home loan applies a lower interest rate to your entire mortgage, not just the portion used for green upgrades. This could save you thousands of dollars annually on your mortgage payments.
We’re here to help you navigate these options by comparing rates, fees, and conditions to find the best solution to met your needs.
Contact us today to find out how to finance your green home improvements efficiently…
“0-1% Finance Offers: A Word of Caution
You’ve probably heard deals like, “Paying off your solar panels won’t cost more than your monthly electricity bill because the finance comes at 0% or 1% interest.” However, in today’s market, such deals often hide inflated costs. Companies may provide lower-quality systems and raise prices by 15-25% to cover the financing.
Remember, if it sounds too good to be true, it probably is. Financing costs are based on risk. Without a proper risk assessment (like checking your credit score or employment history), you’re likely being charged a higher rate. It’s often better to secure financing independently from a trusted provider.
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