Irish authorities have presented a new scheme that will allow homeowners to borrow between €5,000 and €75,000 for a period of up to ten years, at low interest rates. Heat pumps, solar energy and solar boiler installations are all eligible for the scheme.
The Irish government has launched a home energy upgrade loan program to help homeowners make their homes more energy efficient.
The €500 million scheme has been announced as the first of its kind in Ireland. It offers homeowners the opportunity to borrow between €5,000 and €75,000 with a term of up to 10 years to carry out renovation projects on their homes.
The Strategic Banking Corporation of Ireland and the Sustainable Energy Authority of Ireland (SEAI) will oversee the scheme. The funded projects must be delivered by a SEAI registered One Stop Shop, energy partner or community coordinator.
Grants for heat pumps and solar water heating installations are eligible for all three routes, while solar electricity installations are eligible when the work is carried out by a One Stop Shop or community coordinator. If the work is managed by an energy partner registered with SEAI, a maximum of 25% of the subsidy can be spent on solar panels.
Homeowners can apply through participating financing providers. The scheme promises lower interest rates than those typically available in the market, but rates will differ depending on the provider.
Irish bank PTSB is the first institution to announce participation in the scheme, with rates starting from 3.55%. The Irish government said AIB, Bank of Ireland, Avant Money and seven credit unions from the Irish League of Credit Unions are expected to join the scheme in the coming weeks.
According to government statistics, 48,000 home energy upgrades were supported through SEAI programs in 2023, an increase of 76% on the previous year and exceeding government targets by 30%.
“This innovative plan shows how government, financial institutions and the retrofit sector are working together to deliver climate action that works for people and the planet,” said Irish Environment Minister Eamon Ryan. “Access will be simple and fast, with a focus on reducing the workload for homeowners accessing both loans and grants.”
The Irish government said it will continue fully funded energy upgrades for those most at risk of energy poverty under its Warmer Homes Scheme.
Ireland has set a target of producing 80% renewable electricity by 2030. In October 2023, the government allocated around €380 million to the country’s housing and community subsidies, including solar installations.
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