與歐盟EPC能源績效證書相關的綠色貸款
Green loan related with EPC

Green loan related with EPC

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Key points

• UK is one of the countries with an EPC rating and green loans to support clients' actions to improve energy efficiency at home

• Santander UK offers an Energy Efficiency Loan to help reform and improve energy efficiency through a variety of benefits

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       The real estate sector has been adjusted to the ESG-related policies and requirements to maintain a strong portfolio for investors and align with international standards on the environment. The UK real estate sector will have to follow the recent change in rules relating to real estate as of April 1, 2023. The commercial landlord will need to comply with the Minimum Energy Efficient Standards (MEES) regulation for commercial properties to have a minimum EPC rating of E. To landlords and home owners, the need to adjust their energy efficiency to rate E requires a significant amount of capital to do so which leads to the need to borrow. Green loans is one of the option available for the home owner or property owner to consider. 

       The need for a loan to comply with regulations like the MEES Regulations or the recently announced implementation of Schedule 3 to the Flood and Water Management Act 2010 (the “2010 Act”) which will mandate sustainable drainage in new developments in England starting in 2024, may make this type of loan particularly helpful for property owners. Separately, a property owner could choose to make ESG-related capital expenditures on an asset for purely commercial reasons and green loan can help cover those costs. The lenders will be expected to involve in every part of the project and transparency and reporting are the key components of these types of loans. After the clear plan is in place, the discretion of the lenders will play a part in deciding that on one property a sponsor can use the proceeds to meet the MEES Regulations or to pursue different projects related to energy efficiency. The green loan will be beneficial to property owners who pursue the whole-scale ESG strategies as it helps in increasing the fund and portfolios research suggested that environmentally based changes have a positive impact on the reputation and credibility of sponsors and funds and at the same time act as a powerful marketing tool to attract tenants to choose the property and to provide a strong metrics and report also attracts clients, sponsors, and suppliers. 

       Santander is a British financial company that offers a full-service retail and commercial bank to clients. The company not only supports traditional banking services but also follows the sustainability and responsible banking strategy where one of its key pillars is to support a healthy environment by fighting climate change and supporting the green economy. Among of the sustainable finance that Santander offer to the clients is the Energy Efficiency Loan. The Energy Efficiency Loan is a green loan to finance the reformation or improvements of the home to lead to energy saving and improve the energy rating of your home. At the same time, the loan can be financed for the purchase of sustainable appliances. The loan offers several benefits: the fixed annual nominal interest rate of 4%, APR of 4.38%, financed arrangement fee of 1%, early repayment where the client can repay the loan in part or in full with no commissions or if the client receives any kind of subsidy then the client can use it for the loan repayment to reduce the debt at no cost, flexibility up to 7 years, and a minimum and maximum loan amount of EUR 1,000 - 100,000. 

       The purpose of the Energy Efficiency Loan are targeted to support the EPC and other energy efficiency regulations. For the self-consumption, the loan will be support to the installation of solar panels and storage batteries. Under the EPC, the construction of the building and part of the building included heating, cooling and hot water system are part of the Energy Efficiency Loan including the installation of heating, cooling and domestic hot water systems with energy rating A+, A++, A+++ (old labelling between A+++ and D) and A, B or C (new labelling between A and G), installation of heating and hot water systems using condensing boilers, installation of heat pump heating and cooling system by means of splits or ducts, installation of heating, cooling and domestic hot water system using aerothermal system, and geothermal installation, systems that convert heat from the ground into thermal energy such as heating, cooling and domestic hot water. For the control and automation, the intelligent control devices for water, electricity, ventilation and air-conditioning for integrated efficient energy management are part of the loan. Lastly for the façade and building envelope insulation include the replacement of exterior carpentry of the installation of aluminium or PVC windows with thermal break, low-emission double glazing, complying with the limits established in the Technical Building Code (CTE) for Energy Saving, external thermal insulation system (SATE) and ventilated façade. The company also provide the loan simulator energy efficiency to calculate the monthly installment of Energy Efficiency Loan which help the borrower able to calculate how much they need to improve their home. Moreover, the Santander also provide external aid for home renovation as a funding targeting on residential renovation and social housing. The program seeks to provide financial to housing that are aiming to improve energy efficiency with requirement such as minimum 30% reduction of non-renewable primary energy consumption. 

       Green loan that related to EPC are not widely seen in the real estate market sector yet since most green loan related to EPC will only be provided to the country with EPC. Using the UK and Santander as an example of green loan shows that the Energy Efficiency Loan are aligned with the regulations of the country to encourage all house to have at least rating E which emphasize the need for the home owners and property owners to focus on energy efficiency by investing to new home appliances or new technology to improve the EPC rating. Green loans then become a strong financial tool to assist the financial needs where the company provides financial support targeted to all the actions related to energy efficiency such as installation of heating, cooling and domestic hot water system with energy rating of A+, A++ and A++++ which the action will help to improve the EPC rating.