My Department is working with the Department of Finance, the Strategic Banking Corporation of Ireland, the Sustainable Energy Authority Ireland, the European Investment Bank and the European Investment Fund to develop a residential retrofit loan guarantee scheme, which will be backed by a counter guarantee provided by the EIB Group.
The roll-out of the loan scheme is a key action of Climate Action Plan 2023 and the National Retrofit Plan and will be the first consumer-focused guaranteed loan of its kind in Ireland. It will provide risk protection to retail credit institutions participating in the scheme and will enable credit institutions to offer loans with reduced interest rates to all eligible homeowners and non-corporate landlords, making comprehensive home energy efficiency upgrades more affordable to consumers.
Further, it will signal to the banking sector, new sustainable business opportunities associated with retrofit and the transition to a low carbon economy as well as increasing the volume of retrofit activity within the State to meet the required targets.
The development of this innovative scheme is a complex process involving several stakeholders. Intensive engagement to develop the scheme is ongoing and there has been extensive due diligence between the EIB Group and the Irish banking and credit union sector. All stakeholders both at national and European level are committed to finalising the project and it is expected that the loan guarantee will be in place this year. Details on the term of the loan and applicable interest rates will be available upon launch at that time.
