Low-Cost Home Energy Upgrade Loans Confirmed

The Irish Government and the European Investment Bank (EIB) Group has confirmed support for a new low-cost home energy upgrade loan scheme.

The agreement was signed by by the Minister for the Environment, Climate and Communications, Eamon Ryan, the Minister for Finance, Michael McGrath and Dr Werner Hoyer, President of the European Investment Ban. It represents a major milestone in the development of the loan scheme that will be supported by EIB Group resources.

The €500 million scheme will play a crucial role in helping homeowners to invest in energy efficiency, making their homes warmer, cheaper to run and helping to lower emissions. Homeowners will be able to borrow from €5,000 to €75,000 on an unsecured basis for a term of up to 10 years. The interest rates will be significantly lower than those currently available on the market as a result of the combination of the EIB Group loan guarantee and a Government-funded interest rate subsidy.

Homeowners can use the energy efficiency and renewable energy upgrades where those works are also being grant-aided by the Sustainable Energy Authority of Ireland (SEAI). Home energy upgrades will be made more accessible and affordable with the loans.

The scheme will be delivered by the Strategic Banking Corporation of Ireland (SCBI), which will announcing an open call inviting lenders to participate in the scheme. Homeowners will be able to apply for the loans by early next year through participating retail lenders. Eligibility rules and other operational aspects of the scheme will be available then. Those who wish to undertake a deep-retrofit or prefer to undertake individual measures can use the loans.


Those most at risk of energy poverty can continue to avail of fully funded energy upgrades under the Warmer Homes Scheme. The availability of low-cost loans will enhance the ability of those above the eligibility threshold but without the means to fund the retrofits themselves, to upgrade their homes.

Minister Ryan said: "This highly innovative scheme is a first of its kind for both Ireland and the EIB Group. The introduction of these low-cost loans will complement our existing suite of SEAI grants and will help to make retrofits more accessible and affordable for homeowners across the country. We’re seeing the transformation of homes happening already. Retrofitting numbers are on track this year to eclipse our targets and now with this loan we hope that the numbers will continue to go only one way — and that's up.

"We have designed the loans with the needs of homeowners in mind. Access will be simple and speedy with an emphasis on reducing the administrative burden on homeowners accessing both loans and grants. This means that householders can concentrate more on making their homes warmer and more economical, not on the paperwork."

Minister for Finance, Michael McGrath, said: "Home retrofits are a critical component in achieving our ambitious climate action targets. The Home Energy Upgrade Loan Scheme is an important collaboration between the Government and public and private financial institutions, creating a novel scheme of a €500 million loan guarantee and an interest rate subsidy which has the potential to stimulate the level of retrofit activity needed by making affordable products available to homeowners and small landlords.

"I welcome that the Strategic Banking Corporation of Ireland will deliver the scheme, through participating on-lenders. I look forward to it building on the successes of other schemes to date which have supported SMEs across Ireland.

"In addition to the work and commitments by officials in my own Department, I wish to acknowledge the substantial efforts undertaken by the Department of the Environment, Climate and Communications, the Strategic Banking Corporation of Ireland and the European Investment Bank and European Investment Fund to develop this novel scheme which demonstrates the EIB and EIF’s commitment to financing innovative instruments for climate action. I also welcome this investment by the bank that demonstrates its successful engagement with Ireland across a range of key areas for the economy and our future."

Werner Hoyer, President of the European Investment Bank, said: "The European Investment Bank and the European Investment Fund are pleased to join forces with Irish partners to support much needed energy efficiency investments that will reduce emissions as well as energy bills for households. This is a win-win for homeowners and the planet."