John Clendennen (Offaly, Fine Gael)
Link to this: Individually | In context

88. To ask the Minister for Environment, Community and Local Government the status of the operation of the home energy upgrade loan scheme; and if he will make a statement on the matter. [48877/25]

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

The home energy upgrade loan scheme, HEULS, was launched in April 2024. It is intended to play a crucial role in helping homeowners invest in their energy upgrades to make their homes warmer, healthier and more comfortable with lower emissions and lower bills. It was developed by my Department in conjunction with the Department of Finance, Strategic Banking Corporation of Ireland, SBCI, Sustainable Energy Authority of Ireland, SEAI, and European Investment Bank.

The scheme is available nationwide and homeowners can borrow from €5,000 to €75,000 on an unsecured basis for a term of up to ten years at significantly lower interest rates than those currently on the market. Rates start from as low as 2.99% depending on the finance provider. PTSB was the first lender to join in April 2024. AIB and Bank of Ireland joined in June 2024. In 2025, the group of participating lenders has been expanded to include Avant Money in partnership with An Post and seven credit unions from the Irish League of Credit Unions. By the end of 2024, 245 loans to a value of €11.9 million were drawn down, and by the end of June 2025 this had risen to 580 loans to a value of €28.5 million.

In line with the programme for Government, in addition to expanding the number of lenders under the scheme, a key focus of the Department across 2025 has been the continued promotion of the scheme to drive uptake.

This also includes the progression of a comprehensive marketing and communications campaign to scale up activity in the home energy upgrade loan scheme. While I am aware, and it can be seen from the numbers, that it probably did not drive on as quickly as people expected, now that there are the array of lenders and with that campaign being organised I expect there to be a significant uptake. The 3% interest rate in the current market is a very good rate and one we all have a duty insofar as we can to try to promote within our own spheres of influence.

John Clendennen (Offaly, Fine Gael)
Link to this: Individually | In context

I thank the Minister of State and welcome the progress made. I agree with him on the sentiments around interest rates and the take-up. The demand for retrofitting is definitely rising but we need to monitor the correlation of draw-downs versus retrofit. There is a body of work to be done here where there is essentially cash investment in retrofitting. It is welcome but I am not so sure the broader consumer understands the need to invest. We have many debates in this House about the need for energy credits and so on but we would be better served if we invested in this area for the longer term. The only way to bring down energy bills is by investing in renewables and that is the way forward.

In my own county there are situations where central heating by peat fuel is up to 40% compared to a national average of 4%. Whether it is turf fuel or oil boilers the gap between those and heat pumps is significant and there is a body of work to be done to bridge that gap.

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

I thank the Deputy for pointing that out. That has been a feature. As we go to the air to water systems the costs are significant but the long-term rewards are real. When homes are brought up to a higher energy rating and appropriately insulated, there is a significant financial reward over time. When that is coupled with the use of solar panels, that reduces consumption in the first instance, thereby reducing bills. At the end of the day, society is changing a lot in being mindful of our CO2 emissions but until it is made financially feasible and viable people will not be minded to take the next step, which is to invest their own money in protecting the environment more generally. People are willing and better educated about the benefits for the wider aspect of society but I fully agree with the Deputy that we have to make this financially viable and demonstrate there is a financial return through reduced costs over time. Of course, upgrading somebody's home is improving an asset and preserving and protecting it into the future. I thank the Deputy for his interest.

John Clendennen (Offaly, Fine Gael)
Link to this: Individually | In context

For anyone to make a decision on a loan, he or she will consider three key, fundamental points. These are the interest rate, affordability and the loan term. That really determines whether it is feasible or viable. There is one particular cohort, which is our elderly, where the term of the loan may not make sense for them. There is a body of work to do on energy poverty and climate action. I would like to see HVO and wood pellets recognised as an intermediate measure. I mentioned the gap between peat fuel and heat pumps and I believe the likes of HVO and wood pellets should be recognised. There is also an immediate, easy fix, with no disruption to elderly people, through solar panels. We should consider a national scheme where there is free insulation, supported by an SEAI grant, with microgeneration actually funding the installers to the stage where it is paid for. The homeowner will get immediate benefit and will get the transfer of ownership once the full payment has been made. That is a measure we need to introduce for our elderly because right now, it is simply neither feasible or viable to invest in retrofitting.

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

A scheme has been deployed for those most under threat of energy poverty where the entirety of the cost is recovered. That is clearly for those in low income homes, whether they be elderly or significantly dependent on social supports. The Deputy should not hold me to this but I think 25,000 homes have been upgraded in that particular sphere. That is an area that can be looked at.

This will require further review but any investment in a home to reduce CO2 output, rather than going for the full retrofit, would be beneficial and helpful to the environment so it may be possible to look at some staging measures. I accept there are people for whom a ten-year cycle would be significant and would probably preclude them in terms of their own thinking. I am happy to take those issues on board and see what we can do in the future to devise a diverse range of schemes.