With the ever-rising electricity costs and the greater push for sustainability, many Australian homeowners are now looking for ways to go green. This plays a huge role in curbing carbon emissions, and it also keeps the energy bills in check. However, transforming your home into a green one can cost thousands of dollars, so you’ll most likely need a way to finance the renovations.
Fortunately, there are financing options designed specifically for this purpose. Regardless of your state, you can take advantage of affordable green loans by Handy Finance to cover your sustainability projects. These offer lots of benefits, such as lower interest rates and government rebates, and they also cover a wide range of projects.
What Is a Green Loan?
A green loan is a type of financing that’s similar to a home improvement loan, with the major difference being that it’s only meant for sustainability projects. Due to this caveat and the desire to push people towards less carbon emissions, these loans usually attract lower interest rates, so they are cheaper than personal loans. They also have more flexible terms.
What Home Upgrades Qualify for a Green Loan?
To qualify for a green loan in Australia, you need to come up with a project plan showing you want to contribute to lower energy consumption or water efficiency. The specific qualification metrics will vary from one provider to another, but below are the general projects that qualify for green loans in the country.
Solar Panels & Battery Storage
This is the most obvious way you can reduce energy consumption at home as it effectively switches you to a renewable source. All green loans in the country will allow you to purchase and install solar panels and batteries you can use to store excess solar energy. This will significantly cut down your costs and lead to long-term savings.
Energy-Efficient Heating & Cooling
Green loans also allow you to install more efficient air conditioning systems. This means you can also use the loan to cover your heat pumps and hydronic heating system. Popular options here are reverse-cycle air conditioners with high ratings, as these provide year-round climate control while consuming minimal energy.
Insulation & Glazing
When you have more efficient insulation and double-glazed windows, you’ll maintain a comfortable home environment without overworking your heating or cooling systems. This in turn reduces your energy consumption, making these upgrades eligible for green loans.
Rainwater Tanks & Water-Efficient Fixtures
Some lenders also include rainwater harvesting in their green loans eligibility criteria. This means you can use them to install water harvesting systems, water-efficient plumbing fixtures, and greywater recycling systems. All these are better for the environment as they reduce water wastage.
Energy-Efficient Appliances & Lighting
Some green loan providers allow you to upgrade your electric appliances and lighting as older ones consume a lot of energy. When selecting new ones, you’ll need to ensure they have high energy efficiency ratings.
Electric Vehicle (EV) Chargers
With the increasing popularity of electric cars in the country, you can also get a green loan to set up an EV charger in your home. However, green car loans are often not part of this program.
Is a Green Loan Right for You?
If you are planning on making sustainability renovations to your home but don’t want to pay the huge costs upfront, you can consider a green loan. One of the biggest benefits of this type of loan is that it comes with much better terms than traditional loans, so it’s a smart financing option for home renovations.
Start by considering the project you want to carry out and checking the eligibility requirements from different lenders. You can then compare the rates and loan terms and choose the one that suits you best. The application is usually easy as you may only need to gather quotes and documentation. You can then carry out the project, and you’ll contribute to a greener future while also saving on water and energy costs.
