OREANDA-NEWS. May 3, 2012. KfW Bankengruppe offers even better conditions in major lending programmes under the KfW Energy Turnaround Financing Initiative.

“A major step towards achieving the energy turnaround is saving energy. Measures to raise energy efficiency have a direct and sustainable impact and protect the climate at the same time. By granting favourable interest rates in the major energy turnaround programmes, we are also looking to motivate even more businesses and individuals to make a contribution to the energy reform. They can no longer cite lack of finance as an argument for putting off the necessary investments,” says Dr Axel Nawrath, Member of the Executive Board of KfW Bankengruppe.

In production companies, energy costs today make up about 3% to 12% of total costs and as much as 50% in energy-intensive enterprises. Owing to Germany’s heavy dependence on energy imports, growing global energy demand and the attendant supply and price risks, efficient energy use is essential for securing international competitiveness of German enterprises. Companies planning to carry out energy-efficiency measures can benefit from historically low interest rates in the KfW Energy Efficiency Programme, starting at 1% a year borrowing rates, depending on term and credit rating.

Energy-efficient homes are another key component for the success of the energy turnaround. This is why KfW since September 2011 has already been providing development loans at a borrowing rate from 1.00% a year for energy-efficient housing modernisation in the Energy-Efficient Refurbishment Programme. For rehabilitation with particularly large energy savings, a repayment grant is also provided of up to 12.5%.

The very low interest rates are also available in the programme Social Investment - Energy-Saving Building Refurbishment for non-profit organisations, matching the incentive interest rate offered in the Energy-Efficient Refurbishment Programme.