Government launch cheap loan scheme for home upgrades up to €75,000

Homeowners and renters can now avail of a new low-interest loan up to €75,000 to upgrade their homes and make them warmer, healthier and cheaper to run.

The Home Energy Upgrade Loan scheme is a way for homeowners to get cheap loans to help fund energy upgrades that are partially covered by the home energy upgrade grant from the Sustainable Energy Authority of Ireland (SEAI).

Until now, people could apply for grants from the SEAI to cover between 10%-100% of the cost to upgrade their home’s energy rating through insulation, solar panels, windows, flooring, heat pumps and more.

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Now, homeowners or renters can avail of a low-interest loan of between €5,000 and €75,000 to help cover the remaining costs of the home upgrades.

About the Home Energy Upgrade Loan scheme:

• Lower interest rates
• Flexible terms of up to 10 years
• Loans from €5,000 to €75,000 per property (you can get loans for up to 3 properties or €225k per applicant)

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

• Loans are unsecured (i.e. there is no charge taken over the property as is the case with a mortgage)

• Loans are available until 31 December 2026 or until the funding runs out

• The loan is currently available from AIB, Bank of Ireland and Permanent TSB

Some other lenders are in the process of signing up to the scheme and are expected to begin offering the loan in 2024. These include:

• 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

The loan can be used for:

• A deep retrofit of your home (this means upgrading many parts of your home’s structure and energy systems)
• 1 or 2 upgrades that will significantly improve the energy performance of your home

Benefits of the loan scheme:

• Loans can help spread the cost of energy upgrades over a period of time, making it easier to balance repayments against savings on bills
• Streamlined process for grant and loan applications
• Approved loans can be drawn before works begin for deposits or milestone payments
• Flexibility to spend up to 25% of the loan on non-energy related works (e.g., redecorating your home)

Eligibility criteria of the loan scheme:

• The purpose of the loan must be to carry out home energy upgrade works
• You must be the owner of the home
• The property must be located in the Republic of Ireland
• The home energy upgrades must first qualify for a grant from SEAI
• The works must be carried out by either an SEAI registered One Stop Shop, Energy Partner or Community Coordinator
• At least 75% of the loan amount must be spent on eligible measures listed below
• The home must be projected to achieve a min 20% uplift on the current energy performance (BER) of the building
• Loans cannot be used to fund projects that have already completed the works

How to apply for the loan scheme:

Step 1

Contact an SEAI registered One Stop Shop, or an Energy Partner, or an SEAI Community Project Coordinator to plan your home energy upgrade.

Step 2

They will carry out an assessment, provide you with a Home Energy Summary Report and apply for your SEAI home energy upgrade grant.

Step 3

You engage with a participating finance provider for the Home Energy Upgrade Loan Scheme at SBCI.gov.ie

Step 4

You apply for your low-cost, flexible loan using your Home Energy Summary Report at SBCI.gov.ie

Step 5

Once approved for your loan, now you can start your home energy upgrade and carry out work.

If you are can’t afford to make your home more energy efficient, you may qualify for a free energy upgrade with the SEAI Warmer Homes Scheme.

Find out more here