Czech banks to offer loans for energy saving renovations
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Czech banks will begin offering loans this autumn to homeowners for energy-saving renovations, following the government’s approval of initial applications.
The “New Green Savings” program will provide up to 50 billion Czech koruna (approximately 2.1 billion USD) in loans through 2029. Previously, from 2009 to 2022, the program functioned as a subsidy, distributing 137 billion Czech koruna to cover up to half the cost of home improvements like insulation and solar panel installation.
The current government limited subsidies to low-income individuals and seniors, requiring other homeowners to rely on these new loans. While some in the renewable energy installation industry feared this change would reduce interest in renovations, the Minister of the Environment, Igor Červený, defends the new approach, stating the government has kept its promise to continue supporting energy efficiency.
As of late June, 3813 people had applied for loans or subsidies through the program, with roughly 2000 requesting loans totaling over five billion Czech koruna. Banks will make the final decisions on loan approvals, assessing each applicant’s ability to repay. Financial institutions advise homeowners to consult with them early in the process to ensure a smooth application and renovation.
