Dáil Éireann Debate, Monday - 9 September 2024
144. Deputy Richard Bruton asked the Minister for the Environment, Climate and Communications the terms of the low-interest loans available for retrofitting homes from the various participating financial institutions; the supports by way of subsidies or guarantees being provided by European Investment Bank and by the State; and the likely cost that will fall on the Exchequer from such guarantees. [35883/24]
Amharc ar fhreagraThe Home Energy Upgrade Loan Scheme was launched on the 24 April 2024. It was developed by my Department in conjunction with the Department of Finance, the Strategic Banking Corporation of Ireland, the Sustainable Energy Authority of Ireland, the European Investment Bank and the European Investment Fund.
The Government-backed €500 million Scheme is the first of its kind for both Ireland and the EIB Group and will play a crucial role in helping homeowners to invest in energy efficiency. Under the Scheme, homeowners can borrow from €5,000 to €75,000 at significantly lower interest rates to make their homes warmer and cheaper to run.
In order to avail of the low-cost loans, the upgrade projects musts be supported by an SEAI grant and be projected to achieve a minimum 20% improvement in the energy performance (BER) of the building.
Homeowners apply for the loans through the participating finance providers. There is no requirement for the loan to be secured against the property being upgraded (as is the case with a mortgage). Once approved, the loans can be drawn before works begin. Loans are subject to the normal lending criteria, terms, and conditions of the participating finance providers.
The rates are significantly lower than those currently on the market due to the combination of a European Investment Bank (EIB) Group loan guarantee and a Government-funded interest rate subsidy.
PTSB, AIB and Bank of Ireland are now offering loans under the scheme, with rates starting from as low as 3% (pricing varies depending on the finance provider). In addition to the three pillar banks, it is expected that a number of credit unions from the Irish League of Credit Unions will join the scheme in the coming weeks, which will allow more people to access these affordable loans in their own communities. Additional finance providers are expected to commence offering loans later this year.
Further detail and information on the application process is available from at: sbci.gov.ie/products/home-energy-upgrade-loan-scheme
€60 million has been provided by the Government to the SBCI and the EIF to fund the "First Loss Piece" associated with the loan guarantee. However, at the conclusion of the scheme, if the cumulative guaranteed losses are lower that the First Loss Piece amount provided, that balance will be reimbursed to my Department. SBCI and EIF management/operating costs as well as the cost of the interest rate subsidy also arise under the scheme.
