Dáil Éireann Debate, Tuesday - 9 April 2024
121. Deputy Jennifer Whitmore asked the Minister for the Environment, Climate and Communications for an update on the low-interest loans for retrofitting; when an interest rate will be determined; and if he will make a statement on the matter. [14762/24]
View answerIn order to assist with the achievement of our retrofit targets, the Programme for Government, Climate Action Plan and the National Retrofit Plan committed to the introduction of a new residential retrofit low-cost loan scheme.
The Home Energy Upgrade Loan Scheme was developed by my Department in conjunction with the Department of Finance, the Strategic Banking Corporation of Ireland, the Sustainable Energy Authority of Ireland, the European Investment Bank and the European Investment Fund. An agreement with the European Investment Bank (EIB) Group underpinning the new Home Energy Upgrade Loan Scheme was announced in October 2023.
The €500 million scheme is the first of its kind for both Ireland and the EIB. Homeowners will be able to borrow from €5,000 to €75,000 on an unsecured basis for a term of up to 10 years. The interest rates will be significantly lower than those currently available on the market as a result of the combination of the EIB Group loan guarantee and a Government-funded interest rate subsidy.
The Home Energy Upgrade loans 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.
It is anticipated that the loans will be available in the coming weeks through participating retail lenders. Further details regarding the available interest rates will be made available upon Scheme launch.
