Dáil Éireann Debate, Tuesday - 30 November 2021
164. Deputy Michael Creed asked the Minister for the Environment, Climate and Communications when his Department will proceed with the introduction of low-cost loans to compliment the energy efficiency grant scheme; if there will be universal eligibility for this loan scheme; the level of subsidy envisaged on the interest rate; the timeline for the introduction of the scheme; and if he will make a statement on the matter. [58800/21]
View answerThe Climate Action Plan and National Retrofit Plan have set ambitious targets to retrofit 500,000 homes to a Building Energy Rating of B2 or carbon equivalent and to install 400,000 heat pumps in existing buildings by the end of 2030. These targets represent a very significant increase in both the volume and depth of retrofit activity in Ireland.
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 and will be co-funded by the EU Recovery and Resilience Facility and Exchequer funding. The target for introduction of the scheme is mid-2022.
The 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 to private homeowners and non-corporate landlords 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 specific features of the scheme are still under development.
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.
