A new low-cost loan scheme for home energy upgrades has been announced by the Government.
The €500 million scheme enables homeowners who receive home energy upgrade grants to cover the rest of the costs with low-interest loans.
Under the new scheme, homeowners can now borrow up to €75,000 at significantly lower interest rates to retrofit their homes.
PTSB is the first financial institution to offer loans under the scheme with rates from as low as 3.55%.
Other major lenders, including AIB, Bank of Ireland, Avant Money and seven credit unions from the Irish League of Credit Unions (Clonmel, Connect, First South, Listowel, Naomh Breandan, North Midlands and Progressive) are finalising their packages and are expected to announce their details for the low-cost loans for home energy upgrades soon.
The Government said rates will be significantly lower than those currently on the market because of the combination of an EIB Group loan guarantee and a Government funded interest rate subsidy.
The aim is to allow homeowners to cover additional costs such as painting and decorating their homes during retrofitting works and achieve a minimum 20% improvement in the energy performance (BER) of the building.
Homeowners can avail of the scheme subject to certain conditions.
The works must be carried out by an SEAI registered 'One Stop Shop', energy partner or communities project coordinator.
These SEAI registered contractors offer homeowners all the services required for a complete home energy upgrade and can advise whether the planned works meet the requirements for the loan scheme, as well as advising on the grants that may be available from the SEAI.
Up to 25% of the amount borrowed may be spent on non-energy efficiency works, for example, other home improvement works carried out at the same time as energy upgrade works (excluding any form of installation of fossil fuel boilers).
Loans will be available for drawdown up to 31 December 2026, or until the scheme has been fully subscribed
"We have designed the loans with the needs of homeowners in mind,'' Minister for Environment Eamon Ryan said.
He added: ''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,'' Mr Ryan said.
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