Credit Applications for Energy Renovations: A Surprising Decline

One might expect that, given the recent renovation mandate, the number of loan applications would increase. However, to everyone's surprise, this has not been the case. In 2023, banks recorded a slight decrease in approved consumer loans for energy renovations, with approximately 108,203 loans compared to 115,229 in 2022. This is according to data from Febelfin and the Belgian Credit Association (BVK).

Detailed Insights

The number of loans for general renovations remained relatively stable, with only a 1.8% decrease compared to the previous year. In contrast, there was a significant drop of 9.8% in loans specifically aimed at projects that improve energy efficiency, such as the installation of heat pumps, solar panels, or additional insulation.

Encouraging Outlook?

Despite this decline, the number of new loans for green investments remains impressive, with more than 55,000 approved credits in 2023. For comparison, in 2016 there were only around 13,000 applications, representing an increase of about 90% since 2021.

Factors Influencing the Trend

The stabilization observed in 2023 can be attributed to several factors, according to Febelfin. The federation points to rising interest rates, increased material costs, and the drop in energy prices as possible explanations.

Furthermore, analyses by Febelfin show that only 15% of Belgian households currently own a property with an EPC score of at least B, highlighting the need for further investments in energy efficiency.