Ireland introduces home energy loan scheme

The Irish government has introduced a loan program aimed at helping homeowners enhance the energy efficiency of their homes.

Valued at €500 million, this initiative is the first of its kind in Ireland. It enables homeowners to borrow between €5,000 and €75,000 for up to 10 years to complete home retrofit projects.

The program will be managed by the Strategic Banking Corporation of Ireland and the Sustainable Energy Authority of Ireland (SEAI). Projects financed through this scheme must be executed by an SEAI registered One Stop Shop, energy partner, or community coordinator.

Grants are available for heat pumps and solar water heating systems through all three channels. Solar electricity installations qualify when carried out by a One Stop Shop or community coordinator, and when managed by a SEAI registered energy partner, up to 25% of the grant can be allocated to solar panels.

Homeowners can apply through participating financial institutions. The program offers interest rates that are lower than the market average, though rates will vary by provider.

Permanent TSB (PTSB) is the first bank to participate, offering rates starting at 3.55%. The Irish government expects AIB, Bank of Ireland, Avant Money, and seven credit unions from the Irish League of Credit Unions to join the scheme soon.

Government data shows that 48,000 home energy upgrades were supported through SEAI programs in 2023, a 76% increase from the previous year and surpassing government targets by 30%.

“This pioneering scheme demonstrates the collaboration between the government, financial institutions, and the retrofit sector in driving climate action beneficial for both people and the planet,” stated Irish Environment Minister Eamon Ryan. “The process will be straightforward and quick, focusing on minimizing the effort for homeowners seeking both loans and grants.”

The Irish government also announced that it will continue to provide fully funded energy upgrades for those most vulnerable to energy poverty through the Warmer Homes Scheme.

Ireland aims to generate 80% of its electricity from renewable sources by 2030. In October 2023, the government allocated approximately €380 million for residential and community grant upgrade programs, including solar installations.