A long-awaited low-cost loan scheme for home energy upgrades has been announced by the Government.
The €500 million scheme enables homeowners who receive home energy upgrade grants to cover the rest of the costs with low-interest loans.
From today, homeowners can now borrow up to €75,000 at significantly lower interest rates to retrofit their homes.
PTSB is the first financial institution to offer loans under the scheme with rates from 3.55%.
Other major lenders, 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 finalising their packages and are expected to announce their details soon.
The scheme is the first of its kind for both Ireland and the European Investment Bank (EIB) Group and was first announced in 2021.
The Government said rates will be significantly lower than those currently on the market because of the combination of an EIB Group loan guarantee and a Government funded interest rate subsidy.
The aim is to allow homeowners to cover additional costs such as painting and decorating their homes during retrofitting works and achieve a minimum 20% improvement in the energy performance (BER) of the building.
Homeowners can avail of the scheme subject to certain conditions.
The works must be carried out by an SEAI registered 'One Stop Shop', energy partner or communities project coordinator.
These SEAI registered contractors offer homeowners all the services required for a complete home energy upgrade and can advise whether the planned works meet the requirements for the loan scheme, as well as advising on the grants that may be available from the SEAI.
Up to 25% of the amount borrowed may be spent on non-energy efficiency works, for example, other home improvement works carried out at the same time as energy upgrade works (excluding any form of installation of fossil fuel boilers).
Loans will be available for drawdown up to 31 December 2026, or until the scheme has been fully subscribed
"We have designed the loans with the needs of homeowners in mind,'' Minister for Environment Eamon Ryan said.
He added: ''Access will be simple and speedy with an emphasis on reducing the workload for homeowners accessing both loans and grants.
"We also anticipate that with greater competition on the market, loan rates will also become more competitive, giving people more choice and value,'' Mr Ryan said.
'One Stop Shop' providers have also welcomed the new scheme.
''It is very well structured and also allows homeowners to use up to 25% of the loan amount towards associated costs," said Noel Rowland, managing director of Churchfield Home Services, a retrofitting company based in Co Mayo.
"SEAI recognises that when you're upgrading a retrofit in a home that there are associated works that you might have some painting and decoration and other works, and it covers that work as well.
"So, I think it has been well thought through and I think it's hitting the spot.'' Mr Rowland said.
The Government’s Climate Action Plan aims to get 500,000 homes up to a B2 energy rating by 2030, including installing 400,000 heat pumps.
"I am delighted that homeowners and small landlords will be able to avail of loans at very attractive rates to improve the energy efficiency of their homes," Minister for Finance Michael McGrath said.
"This has a double benefit in that it will both help households to reduce energy bills and also lower our CO2 emissions contributing significantly to meeting Ireland’s climate targets.
"The ability to combine a low-cost loan with SEAI grants adds to the attractiveness of the offering,'' Mr McGrath said.
Homeowner Maarten Blanken recently retrofitted his entire home in Dublin for €75,000 and would have gone further if the new scheme was available at the time.
Mr Blanken said that the low value loans are "definitely a gamechanger".
He added: "We might have pushed [the retrofit] a little bit further. The house was a D2 BER rating and we went to an A3. We might have gone up to an A2 with some additions of solar panels. With the loan, we definitely would have gone for that."
Mr Blanken said his home runs far more efficiently since being retrofitted.
"One of the big things is that we don't really feel how cold it is out. In early March, we had a big snow and we woke up in the morning and the kids were all surprised because it was white and snow outside."
"We didn't feel any change in heat in the house throughout the night because of the system the whole house stayed warmer," he said.
