Dáil Éireann Debate, Tuesday - 28 February 2023
102. Deputy Emer Higgins asked the Minister for the Environment, Climate and Communications his views on his latest announcement regarding a new low-cost State loan to retrofit homes; the expected uptake of this loan in the next five years; and if he will make a statement on the matter. [9940/23]
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 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 Group.
The loan guarantee 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 private 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.
Regarding potential uptake of the loan, detailed research undertaken by Sustainable Energy Authority of Ireland indicates a significant level of interest by homeowners, and 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.
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 are committed to finalising the project and it is expected that the loan guarantee will be in place in the coming months.
