Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

In order to assist with the achievement of our retrofitting targets, the programme for Government, the climate action plan and the national retrofit plan committed to the introduction of a new residential retrofit low-cost loan scheme. The home energy upgrade loan scheme was developed by my Department in conjunction with the Department of Finance, the Strategic Banking Corporation of Ireland, the SEAI, the European Investment Bank, EIB, and the European Investment Fund.

An agreement with the EIB Group underpinning the new home energy upgrade loan scheme was announced in October last year. An open call inviting lenders to participate in the scheme was launched on 31 October. The €500 million scheme is the first of its kind for both Ireland and the EIB. Homeowners will be able to borrow between €5,000 and €75,000 on an unsecured basis for a term of up to ten 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. The home energy upgrade loans will help to reduce the financial challenges for many homeowners and will play a crucial role in helping them to invest in energy efficiency, thereby making their homes warmer and cheaper to run and helping to lower emissions. The scheme will also signal to the banking sector the availability of new, sustainable business opportunities associated with retrofit and the transition to a low-carbon economy.

It is anticipated that the loans will be available in this quarter through participating retail lenders. Each will have a slightly different rate but all the proposed rates I have seen from prospective lenders, which they will have to publish in the coming two months, are very significantly below market rates. Householders who might not have the upfront cash will be able to avail of the loans to improve their homes. I expect there to be significant demand for the loans when they are launched, such are the lower interest rates that will apply.

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