Is switching from a coal or oil boiler to an electric boiler a green loan project?
It can be, but show the numbers both ways. Fuel emissions disappear from Scope 1, while electricity adds Scope 2 at 0.710 kg CO2 per kWh on the Indian grid. With grid power alone the net cut may be small or negative; with solar or green open access it is large.
Before the project
- Fuel invoices and boiler log for 12 months.
- Steam or heat output, if metered.
After the project
- Electricity bills including the new load.
- Renewable supply contract or solar generation log, if used.
What lenders look for
An honest net figure. Lenders and reviewers check that the project lowers total emissions, not just moves them from Scope 1 to Scope 2.
Worked example
- Furnace oil boiler: 4,000 L a month x 2.97 kg = 11.9 t CO2
- Electric boiler for the same heat: about 40,000 kWh x 0.710 kg = 28.4 t CO2 on grid power
- With green open access power: Scope 2 market-based falls close to zero
Illustrative. Work out heat demand from your own steam records.
What Senseible does here
Senseible measures your baseline from your own bills before the project and keeps measuring after it, so the saving you show a lender comes from documents, not a brochure. Lenders decide on the loan.
Sources: Loan Market Association, Green Loan and Sustainability-Linked Loan Principles, Bureau of Energy Efficiency, CEA CO2 Baseline Database, version 21.0
Last reviewed 2026-10-22.