A green home is one that is designed with environmental sustainability in mind. It is constructed or altered to consume less energy, water, and natural resources. These eco-friendly homes are built using materials that are not harmful to the environment during production, use, or disposal, often incorporating recycled or repurposed materials. Green homes typically utilize renewable energy sources like solar power and feature extensive insulation. They may also be equipped with thermostats and timers to control temperature, heat pump systems for heating the home and water, and energy-efficient lighting.

Ireland’s initiative to combat climate change and meet international and EU obligations to reduce air pollution includes promoting greener homes. The Climate Action Plan 2021 outlined Ireland’s strategy to achieve this goal, including improving the Building Energy Rating (BER) of 500,000 existing homes to a B2 rating by 2030. It also includes a target to install 600,000 heat pumps in both new and existing homes.

There are numerous advantages to making your home more eco-friendly. Greener homes are not only less expensive to maintain but also more comfortable and environmentally conscious. By using less energy and electricity, these homes help reduce utility bills significantly, which can lead to substantial financial savings over time. According to the Sustainable Energy Authority of Ireland (SEAI), upgrading a three-bedroom semi-detached house from a D2 to a B2 rating can save you approximately €1,200 annually on heating costs. This considerable saving highlights the economic benefits of investing in energy efficiency measures.

Additionally, the construction expenses for building a green home may be lower due to the use of recycled or renewable building materials. These materials often cost less than traditional ones and can be sourced more sustainably, reducing the overall environmental impact of the construction process. Furthermore, green homes tend to have higher property values due to their sustainable features and lower operating costs, making them a wise long-term investment.

In Ireland, many mortgage lenders now offer lower interest rates to those purchasing or constructing more energy-efficient homes, a financial product known as a ‘green mortgage.’ These mortgages are designed to incentivize homeowners to invest in sustainable housing by making it more affordable to do so. Lower interest rates reduce monthly mortgage payments, making it easier for homeowners to manage their finances while enjoying the benefits of an energy-efficient home.

Green mortgages are becoming increasingly popular as both lenders and borrowers recognize the long-term value and positive environmental impact of energy-efficient homes. This financial support is crucial in helping more people make the transition to greener living, contributing to broader efforts to combat climate change and promote sustainability.

To be eligible for a green mortgage, most lenders require that you purchase a home with a Building Energy Rating (BER) of B3 or higher. However, the Bank of Ireland has a different approach, offering a sliding scale discount on homes with energy ratings ranging from A to G. Green mortgages are generally available to first-time buyers, those moving homes, individuals switching lenders, and those constructing their own homes.

Some lenders claim that by offering green mortgages, they encourage people to purchase more energy-efficient homes. This leads to reduced energy consumption and a smaller carbon footprint, which is beneficial for the environment. While a green mortgage does nothing per se to help the environment, it does help save money and keep some extra cash in your pocket—and of course, there is nothing wrong with that!