Dáil Éireann Debate, Tuesday - 21 February 2023
165. Deputy Emer Higgins asked the Minister for the Environment, Climate and Communications if he will report on his Department’s progress in delivering a low-cost loan guarantee scheme to encourage homeowners to undertake home energy upgrades under the national retrofitting and home energy upgrade programme; and if he will make a statement on the matter. [8416/23]
Amharc ar fhreagraMy 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. The scheme is also part of Ireland’s National Recovery and Resilience Plan and will be co-funded by the EU Recovery and Resilience Facility and Exchequer funding. It will also be backed by a counter guarantee provided by the EIB.
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. This approach 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. It is anticipated that the Scheme will provide a lending portfolio of up to €500 million.
Significant progress has been made to date, with two open calls for expressions of interest to participate in the scheme completed, and a number of banks and credit unions submitting formal expressions of interest to provide loans under the scheme. There has also been extensive due diligence between the EIB Group and the Irish banking and credit union sector. Intensive engagement to develop the scheme is ongoing and it is expected that the loan guarantee will be in place in the coming months.
