Insights
A property operator who is a customer of Sunday Power got greener commercial buildings by installing solar panels on its roof. The bank rewarded the measure with a lower interest rate by refinancing, resulting in an annual saving of NOK 400,000.
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The customer has invested strategically on sustainability and installed solar photovoltaic systems on the roofs of several commercial buildings. This venture has not only improved their environmental profile, but also provided significant economic benefits.
The customer has improved the energy rating from B to A on their buildings, which qualified them for green loans. The bank classified the buildings as Nearly Zero Energy Buildings (NZEB), and that eliminated the need for a costly BREEAM certification.
“Green buildings with solar cells represent the standard of the future, and the economic benefits of such investments are becoming increasingly clear,” says Adrian Bergem, CFO of Sunday Power.
In refinancing their borrowings, the customer using “greener build” achieved a reduction of 25 basis points lower interest rate. This results in an annual savings of NOK 400,000.
“After showing the bank our strategic approach to solar cells, we achieved better loan conditions. This is confirmation that environmentally friendly measures also bring economic benefits,” the customer told Sunday Power.
With this strategic investment, the real estate operator shows that sustainability is not only good for the environment, but also for the bottom line.
Read also: negative electricity prices - what can you do as a solar plant owner?
Several banks offer green financing where they provide better loan terms to green buildings that meet certain requirements.
Nordea, DNB, Handelsbanken and Danske Bank all state criteria based on the age of the building, with minor variations from bank to bank. The example below is from Nordea:
• Energy labelling A or B
• Within the 15% most energy-efficient building nationally in its category
• Existing or expected future certification (building under construction) in accordance with criteria listed under or energy label A
• Primary energy requirements min. 10% lower than that of NZEB (Nearly Zero Energy Buildings) in its category
• BREEAM (min. Excelente)
• LEED (min. Gold)
• The Swan Mark
• Loans in connection with renovation/renovation of buildings that lead to an annual reduction of energy use of min. 30%
Read more about green finance on the banks' websites:
• Nordea
• DNB
• Danske Bank
Read more about certifications:
