Dáil Éireann Debate, Tuesday - 15 June 2021
188. Deputy Eoin Ó Broin asked the Minister for the Environment, Climate and Communications the status of the de-risking of a low-cost residential retrofit loan scheme; and the proposed eligibility criteria for beneficiaries. [30830/21]
View answer189. Deputy Sorca Clarke asked the Minister for the Environment, Climate and Communications if he has considered making low-cost loans available to families who wish to retrofit their homes. [30850/21]
View answerI propose to take Questions Nos. 188 and 189 together.
The Programme for Government and the 2019 Climate Action Plan set ambitious targets to upgrade 500,000 homes to a Building Energy Rating of B2 or cost optimal, and to install 400,000 heat pumps in existing buildings by 2030. These targets represent a very significant increase in both the volume and depth of retrofit activity in Ireland. The development of the national retrofit framework to achieve these targets is well underway.
My Department is engaging with the Department of Finance and the Strategic Banking Corporation of Ireland in relation to the development of a residential retrofit loan guarantee scheme. This project has been selected for inclusion in Ireland’s National Recovery and Resilience Plan. The specific features of the scheme and the financial model of the guarantee are still under development.
The part-Exchequer and part-EU funded loan guarantee will provide risk protection to retail credit institutions participating in the scheme. This will enable credit institutions to offer loans with reduced interest rates and make comprehensive home energy efficiency upgrades more affordable to consumers. As a result, households will be able to enjoy more comfortable and healthier homes with a lower carbon footprint.
The loan guarantee is expected to help to increase the volume of retrofit activity within the State and improve the recovery and resilience of the supply chain within the retrofit sector. The scheme will also signal to the banking sector new viable business opportunities associated with the transition to a low carbon economy.
