Low-Cost Home Energy Upgrade Loan Scheme

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Minister for the Environment, Climate and Communications, Eamon Ryan TD; Minister for Finance, Michael McGrath TD; and Minister of State at the Department of Finance with special responsibility for financial services, credit unions and insurance, Neale Richmond TD, have unveiled a new low-cost Home Energy Upgrade Loan Scheme. The €500 million scheme, supported by the Strategic Banking Corporation of Ireland (SBCI) on behalf of the Department of the Environment, Climate and Communications, aims to support homeowners in making their homes warmer, healthier, and more affordable to run by investing in energy efficiency. Low-Cost Home Energy Upgrade Loan Scheme

How Does the Scheme Work?

Homeowners can borrow from €5,000 to €75,000 at significantly lower interest rates to make their homes more energy-efficient. The Government-backed scheme, the first of its kind in Ireland and the European Investment Bank (EIB) Group, is set to play a crucial role in facilitating energy efficiency improvements.

Participating Financial Institutions

Permanent TSB (PTSB) is the first financial institution to offer loans under the scheme, with rates starting from 3.55%. Other financial institutions, including AIB, Bank of Ireland, Avant Money, and seven credit unions from the Irish League of Credit Unions (Clonmel, Connect, First South, Listowel, Naomh Breandan, North Midlands, and Progressive), are finalizing the approval process and legal requirements to provide the scheme and are expected to begin offering loans in the coming weeks.

Competitive Rates and More Choice

With more lenders and increased competition in the market, it is expected that rates will be extremely competitive. The combination of an EIB Group loan guarantee and a Government-funded interest rate subsidy will result in significantly lower rates than those currently available in the market.

Benefits of the Scheme

  • Lower financial barriers for homeowners, making energy upgrades more accessible and affordable.
  • Potential qualification for a lower-cost green mortgage in the future after using the low-cost loan to improve the Building Energy Rating (BER) rating.
  • Loans can be used for deep retrofits or one or two upgrades that significantly improve the energy performance of the home.
  • Upgrade projects must be supported by a Sustainable Energy Authority of Ireland (SEAI) grant and projected to achieve a minimum 20% improvement in energy performance (BER) of the building.

Application Process

Homeowners will apply for loans through participating finance providers. There is no requirement for the loan to be secured against the property being upgraded. Once approved, loans can be drawn before works begin, providing homeowners with certainty regarding funds for planned energy upgrades and any up-front costs or milestone payments.

Ensuring Accessibility

The availability of low-cost loans will make it easier for homeowners to upgrade their homes, ensuring that those above the eligibility threshold can also benefit from energy efficiency improvements. For those most at risk of energy poverty, fully-funded energy upgrades are available under the Warmer Homes Scheme.

Low-Cost Home Energy Upgrade Loan Scheme

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