First low-cost home retrofit loans launched today encouraging renewable upgrades for homes
In a statement, the Department of the Environment said the funding "will play a crucial role in helping homeowners to invest in energy efficiency, making their homes warmer, healthier and cheaper to run".
Home retrofit loans are on offer from today at about half the interest rate for similar loans on the market.
From today, the government has announced that homeowners can borrow from €5,000 to €75,000 at significantly lower interest rates to make their homes warmer and cheaper to run.
PTSB is the first financial institution to move on the new state-backed Home Energy Upgrade Loan scheme, offering loans at a rate of 3.55 per cent.
AIB, Bank of Ireland and other lenders including credit unions are expected to announce their involvement in the scheme in the coming weeks and months.
Under the terms of the scheme, unsecured loans of between €5,000 and €75,000 will be available for periods of one to ten years. Unsecured means householders will not have to meet the stricter borrowing criteria than normally applies to personal loans.
A state fund of €500 million is being provided as a cushion to ‘de-risk’ the process for lenders which enables them to work with lower interest rates.
Speaking at the launch, Minister for Transport Eamon Ryan said: “This innovative Scheme shows how the Government, financial institutions and the retrofit sector are working together to deliver climate action that works for people and planet.
Insulation, solar panel installation and conversion from fossil fuel heating to electric heat pumps are some of the larger works the scheme aims to encourage more people to take on.
“We have designed the loans with the needs of homeowners in mind. Access will be simple and speedy with an emphasis on reducing the workload for homeowners accessing both loans and grants. We also anticipate that with greater competition on the market, loan rates will also become more competitive, giving people more choice and value."