In Switzerland, the energy renovations are encouraged as part of the 2050 energy strategy. According to the Swiss Confederation, more than 40% of energy consumption and almost a third of CO2 emissions are attributable to the building sector. The Confederation and the cantons offer financial contributions for energy renovations, financed in part by revenue from the CO2 tax.
These subsidies and tax incentives help reduce the need for financing for energy renovations. However, it is sometimes necessary to take out a loan to carry out your energy renovations successfully. If credit is needed, it is advisable to compare the offers and to consider the interest rate and reimbursement conditions depending on the size of the project.
Summary
The energy transition is a major challenge for homeowners in Switzerland. It all started with the 2030 Sustainable Development Strategy. Switzerland's energy policy, through the measures put in place in the Energy strategy 2050, contributes to several Sustainable Development Goals (SDGs)1.
An integral part of the 2050 strategy is reducing the carbon footprint of buildings, as well as increasing their energy efficiency. In the near future, the urgency to modernise the energy efficiency of homes will intensify. It is essential for each owner to question whether their home complies with the norms and standards that will be more and more demanding. Upgrading the energy level of homes is now an essential imperative for Swiss homeowners.
1 In particular SDG 7 (clean and affordable energy), SDG 9 (industry, innovation and infrastructure), SDG 11 (sustainable cities and communities), SDG 12 (sustainable consumption and production), and SDG 13 (fight against climate change)
The need to assess your energy situation
Establishing an energy renovation program offers the opportunity not only to determine the most effective improvements to be undertaken, but also to seize the various financing options available to make these projects a reality.
Before embarking on renovation work, it is advisable to assess the current energy performance of your property. This can be achieved through a energy audit, which will highlight the weak points of your home in terms of insulation, heating, and energy production.
Energy audit offers
In the Swiss context, the assessment of the energy performance of buildings is becoming of paramount importance, especially with initiatives aimed at reducing the environmental impact and costs associated with energy consumption. Energy audits are an essential approach to identify potential for improvement and benefit from an effective and sustainable renovation strategy.
SGS Switzerland offers comprehensive energy audit services, allowing you to understand in detail the energy consumption of your buildings. These audits provide quantitative analyses that identify opportunities to improve energy efficiency and reduce costs. The process starts with an inventory of energy consumption, followed by detailed audits to establish the energy profiles of buildings and identify possible consumption reduction measures.
Romande Énergie offers the cantonal energy certificate for buildings (CECB®) and CECB® Plus, making it possible to assess the energy performance of homes and to identify priority measures for their improvement. In addition to the evaluation, the CECB® Plus includes personalized advice from a certified expert, offering a clear vision of the renovations to be prioritized for optimal efficiency. This approach is reinforced by the possibility of adding thermography for a detailed analysis of the building's thermal envelope.
Equans Switzerland specializes in energy audits, offering a comprehensive service that goes beyond simple assessment. Their services include the energy optimization of the operation, with particular attention paid to the efficiency of heating, ventilation, and air conditioning systems, among others. This service is adapted to the needs of residential, commercial and industrial buildings, aimed at reducing operational costs and improving overall energy performance.
Ecotech Energies, for its part, highlights the benefits of an energy audit through an expert approach aimed at reducing energy expenses and valuing the property. Their audit process includes a comprehensive diagnosis, technical, financial and legal analysis, and the proposal of innovative energy efficiency solutions. This approach not only optimizes costs, but also improves the competitiveness and green value of the building on the real estate market.
Renovation standards in Switzerland
Switzerland has implemented strict energy renovation standards, aimed at encouraging owners to improve the energy efficiency of homes. These standards cover various aspects of renovation, from thermal insulation to the replacement of obsolete heating systems with greener and more efficient solutions.
The Swiss Sustainable Construction Standard (SNBS), for example, offers a global concept for sustainable construction in Switzerland. This initiative of the Swiss Sustainable Construction Network (NNBS)2), is based on the concepts Minergie3 and Ecobau4. However, it broadens them to cover all aspects of sustainability.
“We now have proof that there are enough solutions to make our world more profitable, more efficient and more sustainable.”
Bertrand Piccard, co-founder of the Solar Impulse Foundation5
And you, what is your energy plan?
Defining a clear energy plan is essential for any renovation. This includes:
- The selection of the work to be carried out as part of an energy balance,
- The cost estimate,
- Determining the funding required.
The work should be aligned with the specific needs of the building and Swiss energy standards.
2NNBS, 3Minergie, 4Ecobau, 5Bertrand Piccard
Investing in the energy renovation of your property can significantly reduce your energy bills while increasing the comfort of your home. Here are some examples of improvements that you could finance with a private loan.
Isolation
Insulation is one of the most effective measures to improve the energy performance of a building. It can take several forms, such as the insulation of walls, roofs, doors and windows. Good insulation reduces heat loss, which decreases the energy demand for heating and, as a result, energy costs.
Heating
Replacing an old heating system with a more efficient and less polluting solution can have a significant impact on your energy consumption. Options include heat pumps, condensing boilers, or central heating systems powered by renewable energy sources.
Energy production
The installation of photovoltaic solar panels or solar thermal systems is a step towards energy autonomy, reducing dependence on traditional suppliers and promoting environmental protection. Although the initial investment may seem substantial, the analysis shows that these projects pay for themselves quickly, often between 7 and 9 years. The profitability of the projects is supported by available subsidies and the continuous rise in energy costs.
In Switzerland, the economic and ecological context particularly favors investment in solar energy. Owners can benefit from significant financial support in the form of a one-time fee.6 for their photovoltaic installation, thus increasing the profitability of their project. The efficiency of solar energy is measured by the savings made on electricity bills in terms of self-consumption on the one hand and the income from the resale of excess kWh on the other hand.
The performance of a solar installation depends on various factors, including the orientation of the system, sunlight, and the climate of the location. However, thanks to tools such as solar calculators8, owners can get an accurate estimate of the performance and costs of their solar installation, taking into account their specific situation.
In addition to economic benefits, solar panels contribute to reducing the carbon footprint, aligning homeowners with Switzerland's environmental goals. Solar installations can also increase the value of real estate, making this option attractive not only for the savings generated, but also for long-term investment in the property.
Private credit can offer the financial flexibility needed to quickly undertake a project, allowing homeowners to immediately take advantage of the benefits of solar energy. By integrating best practices and tips related to the use of consumer credit, homeowners can optimize their solar investment, ensuring a successful and profitable energy transition.
Read our article 7 tips for successful financing to find out more about good private credit practices.
5Single compensation, 6Guarantee of a repurchase price, 7solar calculators
When it comes to financing energy renovations, homeowners have several options. It is essential to compare these alternatives to choose the one that best fits your financial needs and your renovation projects.
Mortgage
The choice of mortgage is often preferred because of its low impact on the monthly budget. This preference is explained in particular by mortgage interest rates that are lower than those of other forms of financing, as well as by the possibility of repayment over a long period of time with minimal amortization. It is particularly suitable for major projects, but remains constrained by the availability of the mortgage note.
2nd and 3rd pillar withdrawals
Using your 2nd pillar (occupational pension) to finance renovations is possible when the planned work maintains or increases the value of the property, especially if you want to invest in the energy efficiency of your property without using an external loan. However, it is wise to take into account the fiscal impact of early withdrawal as well as the loss of annual interest paid by the pension fund in order to accurately assess the total cost of this financing.
Savings
Paying for your renovations from your savings is the most direct and least costly option in terms of interest. However, this requires sufficient savings and may affect your ability to meet unexpected expenses.
Private credit
Private credit represents a flexible and rapid solution to finance energy renovations. Unlike a mortgage, there is no need to provide supporting documents, and funds can be available quickly. Private loans have higher interest rates than other forms of financing. They remain an interesting alternative, in particular because of their simplicity and the flexibility they offer.
Each of these financing options has its pros and cons. It is important to consider your personal financial situation, the total cost of credit, and the length of repayment before making a decision.
Private credit offers a flexible and accessible financing solution for energy renovation projects. This section explores the specific benefits of this financing option and under what circumstances it may be preferable to alternatives.
- Fast access to funds : The procedures for applying for and approving private credit are generally faster than those for traditional financing options. This can be crucial if you need to start renovating quickly.
- Flexibility : Private loans often offer greater flexibility in terms of the amount that can be borrowed and the terms of repayment. This allows you to adapt financing to your specific needs without significantly disrupting your budget.
- No warranty required : Unlike a mortgage, a private loan does not require collateral on your property. In particular, this means that you can get financing even if your schedule does not increase the mortgage.
- Credit repurchase : If you already have several loans under your belt, a repurchase of credit can be used to consolidate them, thus simplifying your repayments and potentially reducing the total cost of credit.
- Investment in energy efficiency : Investing in renovations that improve the energy efficiency of your property can increase its value on the real estate market and reduce your energy costs in the long term. Private credit can make these investments accessible without waiting for sufficient savings to be accumulated.
Good to know!
Any global loan exceeding CHF 80,000 allows you to receive the funds immediately and avoid the legal withdrawal period of 14 days.
When should you use private credit?
The use of private credit to finance energy renovation projects depends on several factors.
- Your financial situation and your ability to take out a loan
- The desired financing amount and the envisaged monthly repayment budget
- Your needs in terms of immediate renovations
- Your long-term vision for your property
It is a good idea to take out private financing for various types of renovation projects aimed at improving the energy efficiency of your property. Among the most popular projects, the replacement of an obsolete boiler or the installation of solar photovoltaic panels.
For loans that exceed CHF 100,000?
Ideally, a private loan is suitable for projects whose cost does not exceed CHF 100,000. For larger amounts, it may be more advantageous to consider mortgage financing options, taking into account in particular the capacity of your property's mortgage schedule.
The mortgage note is a key document in real estate financing in Switzerland, serving as a guarantee for the loan. It indicates the maximum amount that the financial institution is ready to lend based on the value of the property, which can influence the decision between opting for private credit or a mortgage to finance renovations or energy improvements.
A private loan for the renovation of properties abroad
In addition, private credit can also be considered for the renovation of your real estate abroad, because while standards vary from country to country, the climate issue impacts your real estate wherever they are.
Tell us about your energy renovation project
At Credial, we understand the importance of making your home more energy efficient, comfortable and sustainable. That is why we invite you to share with us your vision and your energy renovation plans. Our team is ready to listen, advise and support each stage of financing your project.
Credial, your financing partner
As funding partner experienced, Credial is committed to providing you with tailor-made private credit solutions that correspond to your energy renovation needs. We help you realize your projects without compromising your financial situation, thanks to advantageous and transparent loan conditions.
Let's do things in order
The decision to opt for a private loan should take into account your current financial situation, immediate renovation needs, and your long-term vision for the property. A consultation with a financial advisor is recommended to assess the best financing option adapted to your specific project, thus ensuring optimal management of your investment and your sustainability goals.
We believe in a structured approach for the financing of your project. Starting with a clear understanding of your needs and goals, we guide you through each stage of the financing process, ensuring that all decisions made are well-informed and beneficial to you in the long run.
Budget study
Before you commit to a energy renovation project, it is imperative to carry out a detailed budget study. Credial assists you in this process by determining with you whether your financing potential corresponds to the estimated costs of the work, thus allowing you to make an informed decision.
Creditworthiness analysis
Our commitment to financial responsibility leads us to conduct a thorough solvency analysis for each client. This step ensures that the proposed financing is in line with your repayment capacity, protecting you against over-indebtedness and promoting the realization of your project in the best conditions.
It is without commitment
At Credial, we want you to feel comfortable and confident in your decision to choose us as your financing partner. All our consultations, budget studies, and solvency analyses are carried out without commitment on your part, leaving you the freedom to choose the best option for your energy renovation.
Your energy renovation project is in good hands. Our expertise in financing solutions, combined with our commitment to a personalized and responsible approach, makes us the ideal partner to transform your home into a sustainable and energy-efficient space. Contact us today to start making your vision a reality.
