Homeowners will have easier access to low interest loans for energy upgrades to their property with the addition of 7 credit unions to the Home Energy Upgrade Loan Scheme.

The seven members of the Irish League of Credit Unions joining the scheme as lenders mean that low-interest government backed loans are available to 267,000 members across 28 branches.

Clonmel Credit Union, Connect Credit Union, First South Credit Union, Listowel Credit Union, Naomh Breandan Credit Union, North Midlands Credit Union, and Progressive Credit Union are open for applications for the loan scheme, with interest rates starting from 2.99% depending on the lender. 

These credit unions were successfully approved to join the scheme following an extensive due diligence process involving the Strategic Banking Corporation of Ireland (SBCI), the European Investment Bank (EIB) and the European Investment Fund (EIF).

David Malone, Irish League of Credit Unions CEO, said that they were delighted to support seven of their members in joining this scheme.

“As the country’s leading provider of home improvement loans, credit unions play a vital role at the heart of local communities, making them an important addition to this scheme.”

“We know that the cost of home energy upgrades can be a significant barrier for homeowners.”

“By offering low-cost loans through this scheme, participating credit unions will provide important supports to members, enabling them to enhance the comfort, warmth and energy efficiency of their homes.”

The Home Energy Upgrade Loan Scheme offers loans of up to €75,000, with payment terms extending to 10 years, for people to carry out works on their homes which will improve their energy efficiency, or add renewable energy systems such as solar panels.

The scheme is backed by the European Investment Bank and also has a government funded interest rate subsidy. This means that interest rates on these loans will be much cheaper than anything else on the market.

The €500 million scheme aims to make homes warmer and more comfortable, while also saving homeowners money on their energy bills and reducing their emissions.

Once approved, the loans can be drawn before works begin. This gives certainty to homeowners that they have the funds for the planned energy upgrades as well as any up-front costs or ‘milestone’ payments.

The scheme, which launched in April of last year, is the first of its kind in Ireland and for the European Investment Bank (EIB) Group. 

It is delivered by the SBCI on behalf of the Department of the Environment, Climate and Communications, and supported by SEAI and the EIB Group.

Minister for Climate, Environment and Energy Darragh O’Brien said, “Today is a significant development with low-cost, government-backed retrofit loans even more accessible now that 7 credit unions, with a reach of 28 branches, and approximately 267,000 members, are participating in the Home Energy Upgrade Loan Scheme.”

“I am particularly happy to see credit unions join the scheme given the crucial role that they play in their communities.”

“Expanding the number of lenders providing the low-cost loans is in line with the Programme for Government and will help more homeowners to upgrade their homes to be warmer, healthier and cheaper to run.”

“I am confident that today’s announcement will further build momentum in the retrofit sector, which has seen huge growth in recent years and will help us achieve our 2030 retrofit targets.”