Eamon Ryan (Dublin Bay South, Green Party)
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The Home Energy Upgrade Loan Scheme was launched on the 24 April 2024. PTSB is the first financial institution to offer loans to homeowners under the Scheme, with rates from 3.55% available now. AIB, Bank of Ireland, Avant Money and seven credit unions from the Irish League of Credit Unions (Clonmel, Connect, First South, Listowel, Naomh Breandan, North Midlands and Progressive) are finalising the approval process and legal requirements to provide the Scheme and are expected to commence offering loans shortly.

The loans available will help reduce the financial challenges for many homeowners and 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. It will also signal to the banking sector, new sustainable business opportunities associated with retrofit and the transition to a low carbon economy.

Loans can only be used to fund solar photovoltaic (PV) panels where they are installed as part of a deep retrofit supported under the National Home Energy Upgrade Scheme (One Stop Shop Service) or Community Energy Grant Scheme. Where a homeowner is using the loan to pay for works under SEAI’s Better Energy Homes Scheme for Individual Energy Upgrade Grants, up to 25% of the amount borrowed can be used for other non-eligible home upgrades, which may include Solar PV.

The Deputy may wish to note that there are financing options generally available in the market for solar PV as a standalone measure. Some solar PV companies offer a fully funded solution whereby the entire cost is funded over a fixed number of years with no upfront costs. Many solar PV companies also offer solar PV ‘net of grant’ so the homeowner only needs to pay the difference between the overall cost and the grant.

It is also important to note that there is also a range of existing government initiatives supporting the installation of residential solar PV as follows:

• Under the Microgeneration Support Scheme, Sustainable Energy Authority of Ireland (SEAI) grants of up to €2,100 are available for houses built prior to 2021. Buildings do not have to meet a minimum BER (Building Energy Rating) standard.
• On 1st May 2023, Government announced a zero percent VAT rate for the ‘Supply and installation of solar panels on domestic premises’ which is also a significant support for homeowners.
• Revised planning permission regulations were introduced in October 2022 which expanded the eligibility of properties for exemptions from planning permission when installing Solar PV.
• Irish micro-generators can avail of the Clean Export Guarantee (CEG) tariff, allowing them to receive payment from their electricity supplier for excess renewable electricity they export to the grid, reflective of the market value of the electricity.