Home Energy Upgrade Loan Scheme

The Home Energy Upgrade Loan is a new loan scheme with low interest rates for homeowners who want to make their property more energy efficient. The loans can be used to undertake a deep retrofit involving several energy upgrades at the same time, or to carry out one or two upgrades that will significantly improve the energy performance of the home, for example, insulating your home or installing a heat pump or solar power.

You can get the loan for the home you live in, or a property you rent out.

You must use the loan for home energy upgrades that are also funded by a home energy upgrade grant from the Sustainable Energy Authority of Ireland (SEAI).

The loan can be drawn down before you start the work. This removes some of the upfront financial barriers to getting the upgrade works done.

The scheme is offered by the Strategic Banking Corporation of Ireland (SBCI) and the loans are available until 31 December 2026 or until the funding runs out.

People most at risk of energy poverty can continue to avail of fully-funded energy upgrades under the SEAI Warmer Homes Scheme.

The loan is currently only available from Permanent TSB.

However, some other banks and credit unions are in the process of signing up to the scheme and are expected to begin offering the loan in the next few weeks. These include:

• AIB
• Bank of Ireland
• Avant Money
• Clonmel Credit Union
• Connect Credit Union
• First South Credit Union
• Listowel Credit Union
• Naomh Breandan Credit Union
• North Midlands Credit Union
• Progressive Credit Union

You can borrow between €5,000 and €75,000 per property.

You can get loans for up to 3 properties or €225,000 per applicant.

Loan terms range from a minimum of one year up to a maximum of 10 years.

The loans are unsecured loans. This means that no security or personal guarantee is required.

The interest rates are different depending on who you get your loan from. But they will be lower than rates for regular personal loans. This is because the interest rates are subsidised by the Government and the loans are backed by the European Investment Bank.

Permanent TSB is the first participating bank and it is offering rates from 3.55%.

To qualify for the loan:

• You must be living in Ireland
• The property must be in the Republic of Ireland
• You must own the property. It can be the home you live in, or a property you rent out.
• You must use the loan for home energy upgrade work. At least 75% of the loan must be used for energy efficiency measures and 25% can be used for non-energy related works, like redecorating your home.
• You must qualify for an SEAI home energy upgrade grant for the work
• The work must be done by an SEAI registered One Stop Shop, Energy Partner or Community Project Coordinator
• The upgrade work must aim for at least a 20% improvement in the home’s current Building Energy Rating

You cannot get a loan to fund work that has already been completed.

The SBCI has more information about the loan’s terms and conditions.

1. Get an energy assessment for your property

You must get one of these SEAI registered service providers to do an energy assessment (also called a Home Energy Summary Report) of your property:

• SEAI Registered One Stop Shop
• Energy Partner
• Community Project Coordinator

When they have done the assessment, they will give you a Home Energy Summary Report.

If the upgrades recommended in the report could lead to at least a 20% improvement in your home’s current Building Energy Rating you will be able to apply for the loan.

2. Get an SEAI home energy upgrade grant

To avail of the low-cost loan, your upgrade project will have to be supported by a SEAI grant. Your SEAI registered service provider will apply for one of these SEAI home energy upgrade grants for you:

• Better Energy Homes Grant
• National Home Energy Upgrade Scheme
• Community Grant Scheme

You must qualify for one these grants to get the loan.

3. Apply for a Home Energy Upgrade Loan

Contact one of the financial institutions that offers the Home Energy Upgrade Home Loan. The SBCI has a list of the financial institutions that currently offer the loan.

You will need to show the financial institution your Home Energy Summary Report

Each participating financial institution uses its own credit criteria, policies and procedures to decide if they will approve your loan application.

4. Begin the work on your property

Once your loan has been approved, you can begin your home energy upgrade work.

You can find more information about the Home Energy Upgrade Loan Scheme on the SEAI’s website and the SBCI’s website.