AIB & Bank of Ireland to offer home retrofitting loans with lower interest rate

Two more banks are to offer “low cost” loans for a State-backed retrofitting scheme to upgrade home energy efficiency and cut fuel bills. With starting interest rates as low as 3 per cent, homeowners will be able to borrow €5,000-€75,000 from AIB and Bank of Ireland later this year, to make their homes warmer.

Their participation has been welcomed by Environment Minister, Eamon Ryan, and Finance Minister Michael McGrath who hope the move will significantly increase market competition and provide homeowners with more choice.

Permanent TSB already offers loans under the €500m Home Energy Upgrade Loan Scheme launched in April 2024 with a number of credit unions expected to join in the coming weeks.

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Minister Ryan said: “The increased competition in the market means homeowners will now have more choice and greater value.

“Low-cost just got lower, which is good news for householders.

“I am delighted AIB and Bank of Ireland are now participating [and] very much welcome the extremely competitive rates starting from 3 per cent, which are the best green loan rates available on the market.”

Minister Michael McGrath added: “With AIB and Bank of Ireland joining PTSB under this scheme, and more lenders, including credit unions to join soon, its benefits will spread even wider, helping households to reduce energy bills and also lower our CO2 emissions, contributing significantly to meeting Ireland’s climate targets.

“I encourage anyone with an interest in availing of the scheme to contact participating finance providers. I believe this initiative will have a very significant, positive effect in the years ahead.”

The Home Energy Upgrade Loan Scheme is delivered by the Strategic Banking Corporation of Ireland on behalf of the Department of the Environment, Climate and Communications, with support from the Sustainable Energy Authority of Ireland and EIB Group.

It works hand in hand with SEAI grant programmes, and loans can be used for a broad range of home energy upgrades through applications at participating finance providers.

Geraldine Casey, AIB Managing Director of Retail Banking, said: “These low-cost loans will allow customers the opportunity to upgrade their homes, save money on energy bills and help the environment.

“Our purpose is to empower people to build a sustainable future. And by upgrading their homes, be it through insulation or heat pumps, our customers can do just that.”

Henry Dummer, Bank of Ireland Director of Everyday Banking, said: “With almost three quarters of the housing stock in Ireland BER rated C and lower, and with our research showing that six in ten homeowners plan to retrofit their home at some stage in the future, this low-cost loan scheme is another fantastic opportunity for customers to invest in the upgrade of their homes.”

Further detail on the Home Energy Upgrade Loan Scheme, including the full eligibility criteria, are available on the SBCI and SEAI websites.

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