With Green Credit to a Green Home

From promoting the concept of energy efficiency to certifying buildings and creating green loans for purchasing energy-efficient homes or adapting existing ones, a very short time has passed.

Croatian banks, in line with European practices, began offering green loans to citizens, the economy, state institutions, local government units, and renewable energy investors just over two years ago, with interest rates more favorable than those for regular loans.

According to the plans of the European Union and the directive adopted in 2009, the share of energy from renewable sources should amount to 20 percent of energy consumption in member countries by 2020. Accordingly, investment in renewable energy sources from wind, solar, water, biomass, and biogas has increased in the EU.

In Croatia, by the end of 2020, 13.6 percent of the total energy produced should come from renewable sources. Croatian banks have recognized the potential of renewable energy sources, aided by Croatia’s climatic diversity, and have offered green loans.
The first green loans aimed at promoting energy efficiency in the Croatian market were introduced by Zagrebačka banka two and a half years ago for the purchase of energy-efficient apartments or houses that consume 50 kWh of energy per square meter. Old buildings currently consume four times more energy, but all major banks in Croatia offer green loans not only for purchasing new apartments but also for adapting old ones for energy savings. Green loans finance the purchase and installation of solar collectors and other systems from renewable energy sources, the installation of windows with insulation, the installation of thermal facades…
In Zagrebačka banka, they have recorded an increased response from clients for green loans, which they wish to use to improve their living quality, live healthier, and contribute to environmental preservation. The public is becoming increasingly educated and aware of the need for energy savings due to potential disruptions in energy supply, as well as the constant and significant rise in energy prices.
– Since the launch of green loans just over two years ago, in April 2010, Zagrebačka banka and Prva stambena štedionica have approved around 312 million kuna in green housing loans – they say at Zagrebačka banka.

The largest Croatian bank has also targeted green loans to small and medium-sized enterprises, craftsmen, local government units, and non-profit institutions. The loan can also finance the purchase and installation of grid-connected photovoltaic and solar systems for electricity production intended for sale to HROTE, the purchase or construction of low-energy properties, and the improvement of energy efficiency in business properties.
A great interest in green loans is also shown by clients of OTP banka, which only offered Sunny loans at the end of August this year. For now, they are intended only for citizens, but they will soon be offered to small businesses and craftsmen. OTP banka offers housing loans for low-energy homes ranging from five thousand to 250 thousand euros and for financing energy efficiency improvement projects such as gasification of households, water filtration systems, and all other costs related to improving energy savings.
Green housing loans from HPB are intended only for citizens and are more favorable than regular housing loans. They can be taken in kuna and with a currency clause in euros, with the interest rate on the loan with a currency clause being 4.95 percent fixed for the first year of repayment, and afterwards variable and higher by half a percentage point. The interest rate on the loan in kuna is variable and amounts to 5.95 percent per year, with a repayment period of up to 30 years and the possibility of contracting a grace period of up to 12 months.

At Hypo Alpe-Adria-Bank, the offer of green loans is specially tailored to the needs of small and medium-sized enterprises. Beneficiaries of more favorable lending conditions include: commercial companies, craftsmen, cooperatives, institutions for profit-making activities, liberal professions, family farms, and residential buildings. Entrepreneurial loans are intended for financing solar systems for the production of electricity and thermal energy for their own needs, grid-connected solar systems for production, the purchase or construction of low-energy properties, and for improving the energy efficiency of business properties.
– Green loans from Hypo Alpe-Adria-Bank are available with a variable interest rate of six-month Euribor + six percent, approved for a repayment period of up to 10 years including a grace period of up to one year – they say at that bank.
Housing eco-loans of up to 500 thousand euros with a repayment period of 30 years and an interest rate 0.2 percent lower than that for regular loans are offered by Erste banka.
– The concept of eco-lending, which covers the broadest purposes of the environmentally conscious segment of clients, was introduced by Erste banka into its offer back in mid-2010. It offers citizens green loans for purchasing residential space with high energy efficiency, construction and extension, and reconstruction of high-energy houses, purchasing and installing equipment for using renewable energy sources, interventions on properties that affect the reduction of energy consumption, performing thermal insulation of residential buildings, refinancing costs for necessary permits, solutions, approvals, and documentation in accordance with regulations governing the energy sector – they say at Erste banka.
This bank also finances investment projects in renewable energy sources and waste recycling, which is why it established a Specialized Financing Service within its Economic Sector at the beginning of 2009. This team of Erste banka employees exclusively deals with renewable energy projects, and Erste banka monitors the trend of market development in Croatia and offers clients the possibility of financing renewable energy sources.
– Although we have noticed an increase in interest in this type of lending over the past two years, we believe it will continue to grow due to the alignment of legal regulations with EU regulations, especially with the accession to the EU – they explain at Erste banka.
Up to 350 thousand euros in green loans, or PBZ Energo loans, are offered to citizens by Privredna banka Zagreb. But PBZ also finances energy efficiency projects for small and medium-sized enterprises and local and regional government units; the renovation of schools, kindergartens, and other public buildings.
– In order to save energy and reduce CO₂ emissions, PBZ is the first bank in Croatia that has concluded a program for financing energy efficiency projects with the European Investment Bank (EIB). The advantage of this program is the incentives, non-repayable funds for clients provided by the European Commission, which are intended for partial early repayment of the principal of the loan. The maximum amount of incentives is 15% of the investment amount, noting that the percentage varies from project to project as it depends on the structure and specifics – they say at PBZ.
Clients are increasingly interested in the RBA Flexi green housing loan, which allows them to take out an amount of up to 200 thousand euros for the purchase or construction of an energy-efficient home. This bank also finances the adaptation of old apartments with the aim of increasing energy efficiency with a maximum of 100 thousand euros and the renovation of residential buildings.