Green Building – Promoting Sustainable Construction and Financial Guide


In times of climate crisis, more and more people are choosing to make their lives “greener”. This includes the so-called “green building” – the sustainable building of houses. To promote this environmentally friendly home construction, some banks offer eco-loans to help finance a sustainable home.
In today’s blog post we have collected the most important facts about sustainable building and its support for you.

“Green Building” pays off – not just for the environment

"Green Building" pays off - not just for the environment

The energy-saving and resource-saving construction or conversion of real estate is promoted by some banks with green credits. Loan support is usually tied to specific conditions and requires certification of the construction project through its sustainable construction. Significantly, the state also supports sustainable housing construction, for example with the state-subsidized development bank .

Loans for green construction projects tend to be less expensive than other loans, but more stringent conditions often require measures that incur additional costs. Bank promotes the use of experts for energy-efficient refurbishment or construction planning, who must examine the construction project. The costs are borne by the borrower. Nevertheless, sustainable house building can also be economically viable . In the long term, for example, modern and environmentally friendly construction measures can save electricity and heating costs.
Basically – the higher the environmental factor of a property, the higher the loan granted. It therefore pays off to reduce energy consumption in building a house and to save resources.

Funding by Bank

Bank

The promotes sustainable construction projects and grants loans for the so-called Bank Efficiency House Standard . The energy quality of real estate is determined for the valuation of the Bank Efficiency Houses. Reference quantities for this are the primary energy demand and the transmission heat loss. Key figures are given for this – the smaller the key figure, the lower the energy requirements of the building and the higher the funding from Bank. There is a separate standard for listed houses.
Bank offers loans for energy-efficient renovation and energy-efficient construction. In addition, subsidy models are also offered, eg a grant for the planning and construction supervision by an expert for energy efficiency or a subsidy for the installation of fuel cell systems.
The exact funding conditions , as well as the current interest rates of Bank can be found on the website of the .

Apply for funding – what do you have to consider?

money

If you want to apply for a grant for your “green building”, you should do it before the construction starts. Later, in most cases, no additional subsidies will be paid.
An application for funding from Bank must be made as a private individual via the company’s own bank or, for example, through a state subsidy agency – in Schleswig-Holstein the Investitionsbank Schleswig-Holstein. The Bank only lends its loans through credit institutions, not directly to the private applicant. When applying for the state subsidy agency, another advantage may result – usually this secures subordinated in the land register, this reduces the interest of conventional loans in the first rank.
Assessment scales can be used to determine the potential amount of credit for each project. Many lenders also have to prove that the planned construction project or the refurbishment measure meets their sustainability requirements.

There are various certification procedures in Germany for this, for example the criteria catalog of the German Sustainable Building Council (DGNB). It contains requirements that a project must meet in order to obtain a certificate.

The criteria are divided into six categories:

1. Ecological quality

Ecological quality includes requirements such as the use of environmentally friendly materials during construction.

2. Economic quality

Economic quality should also include economic factors in all areas of home construction. In order to ensure the long-term viability of a property, the following criteria must be taken into account: building-related life cycle costs, flexibility and reusability, and marketability.

3. Socio-cultural and functional quality

The aim of the socio-cultural quality is to strengthen the social performance of the population with the sustainable construction of houses. Factors such as space efficiency, health, accessibility and home comfort play an important role in this context. What many do not know, Bank promotes structural measures in residential buildings with the program “age-appropriate rebuilding” in order to reduce barriers in the housing stock and to increase living comfort .

4. Technical quality

The technical quality includes, among other things, the expense of maintenance measures or the possibility of recycling or demolition measures.

5. Process quality

Process quality includes factors such as the quality of the project preparation, securing the sustainability aspects, quality assurance of the construction work and an orderly commissioning. The nine factors of the DGNB aim to increase the quality of planning and construction.

6. Location quality

The quality of the location of a building includes criteria that influence the effect of the building on the environment and vice versa the effect of the environment on the building.
Among other things, this includes an analysis of possible negative environmental influences and appropriate protective measures. In addition, the building should have a positive influence on the image of the district in which it arises. In addition, good transport connections and the proximity to public facilities relevant to use are among the most important factors in the quality of the location.

The system of the DGNB does not evaluate individual measures, but the environmentally sound overall concept of a building.

The search for the appropriate funding opportunity for the personal construction project can cost a lot of time. As an independent consultant, the team of TGI Financial Partners will gladly assist you in finding the right funding!

Sustainable Building – How to do it right?

Sustainable Building - How to do it right?

When building a “Green Building” or a sustainable renovation, it definitely makes sense to get the support of an expert . But what exactly is a “Green Building” anyway?

“Green buildings” were developed under the aspect of sustainability. This means that they save energy and resources at all stages of the building lifecycle and reduce the harmful effects on the environment and health.

To achieve these goals, there are different measures:

  • Use of ecological building materials , eg from fast-growing plant materials such as wood, bamboo and straw or recycled material
  • Construction of solar houses, plus energy houses or low energy houses
  • Generation of renewable energies locally – by solar energy, water energy, wind energy or biomass
  • Reduce waste during construction – avoid waste of building materials and energy through better planning
  • Reduction of waste after construction – for example by installing composting equipment in the garden

In order to reduce the heating and electricity requirements, one should also dispense with the installation of air conditioning, with ecological insulation materials ensure that the heat of the house is not lost and incorporate modern, multi-glazed windows and doors, which also reduce heat loss.

Especially in industrialized countries like Germany, houses are largely involved in high energy and resource consumption. By implementing environmentally friendly measures, the burden on the environment can be reduced enormously.

With the right support at your side, make your home a “green building” !