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Mapping of existing financial possibilities

The Energy City has initiated dialogue meetings with the majority of the banks and credit unions in the Municipality of Frederikshavn. 

The dialogue meetings were held on the basis of an interview guide with the purpose of mapping existing loan opportunities at a local level. 
The results of studies on private homes and options for obtaining loans for renovation, can be read in the Infinite Solution Report

What have we learned so far? 

All banks offer home loans, which can be widely used for improvements of the property, including loans for energy retrofit. The loans are of a variable rates ranging from 5-10% up to 20 - 30 year maturity. The basis for determining the interest rate is a risk assessment based on the equity in the house (up to 100% of the house value) and the homeowners financial situation. The typical home loan is between 100,000-300,000, - kroner. (1 €~7.5 DKK). Most bank offer energy retrofit contracts (loan scheme) with an agreement to postpone the first repayment of the loan one year, energy savings can help fund the loan.

Generally, homeowners have relatively large savings and a good home equity. The banks agree that many of their customers in the Municipality of Frederikshavn, have saved up and repaid existing loans, even though they have not been directly affected by the financial crisis.

The facts

The fact is, that in Municipality of Frederikshavn has 16,000 homes listed earlier than 1980. These homes have a large energy renovation potential, as they are from a period with gentle building requirements on climate envelopes and renewable energy solutions. If each of these houses undertake energy renovation worth 13,300,000 EUR on average. It would generate a total lending potential of 1.5 billion DKK. The meetings are based on three main points of impact: 

  • Mortgage
  • Professional relations
  • Customer relations

Where are we going?
The survey is the first step in developing an increased focus on concessional borrowing opportunities for energy renovation in private homes. 

Now the Energy City has established contact with the local financial institutions. A large part of them want to collaborate on the potential energy renovation of private homes.