A NEW €500m Home Energy Upgrade Loan Scheme will offer choice and value to consumers, Fianna Fáil Cork North West TD Aindrias Moynihan said.
Minister for the Environment, Climate and Communications, Eamon Ryan; Minister for Finance, Michael McGrath, and Minister of State at the Department of Finance with special responsibility for financial services, credit unions and insurance, Neale Richmond launched a new low-cost Home Energy Upgrade Loan Scheme.
The purpose of the scheme is to enable homeowners who receive SEAI home energy upgrade grants to avail of low-interest loans to cover the remainder of the costs.
PTSB is the first financial institution to offer loans to homeowners under the scheme, with rates from 3.55%. AIB, Bank of Ireland, Avant Money and seven credit unions from the Irish League of Credit Unions are finalising the approval process and are expected to commence offering loans in the coming weeks.
With more lenders and increased competition in the market, Deputy Moynihan predicted that rates will be extremely competitive, offering consumers more choice and value, and making home energy upgrades more accessible and affordable for homeowners.
‘The loans can be used by homeowners who want to undertake a deep retrofit involving several energy upgrades at the same time or to carry out one or two upgrades that will significantly improve the energy performance of the home,’ he said.
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.
Once approved, the loans can be drawn before works begin. ‘This gives certainty to homeowners that they have the funds for the planned energy upgrades as well as any up-front costs.
‘Households could also qualify for a lower cost green mortgage in the future after they use their low-cost loan to improve their BER rating up to the required level. I would encourage anyone who is interested in retrofitting their home to avail of this Scheme.’
Friends of the Earth, which has been campaigning for the Government to make retrofitting and heat pump grants more accessible welcomed the new loan scheme as a positive step.
'This loan scheme gives households agency to retrofit in stages and at a pace that works for them, taking some pressure off to undertake a more costly deep retrofit. We're also happy to see this loan scheme being provided by certain credit unions, as trusted local finance institutions in communities across Ireland, and we hope to see more provide this service in the coming months and years,’ said Clare O’Connor, energy policy officer in Friends of the Earth.
'There is still scope for this loan scheme to better target families on lower incomes by following the lead of the Dutch government, who offer a zero-interest retrofit loan for households with an income under €60,000. And to reach people struggling the most with meeting their energy needs, we will still need targeted action from the government to expand the Warmer Homes (free energy upgrade) Scheme to include HAP tenants and those on disability allowance at a minimum.
'It's good that this scheme is open to small landlords to incentivise them to retrofit their rental properties, but the government still needs to drive greater action by delivering on their commitment to set minimum energy performance standards in the private rental sector.”
