Two more banks, AIB and Bank of Ireland, have joined PTSB in offering low-cost loans to homeowners under the State-backed retrofitting Home Energy Upgrade Loan Scheme.
With starting interest rates from 3%, homeowners can borrow from €5,000 to €75,000 from AIB and Bank of Ireland later this year to retrofit their homes and make them warmer and more energy efficient.
PTSB already offers loans under the €500m Home Energy Upgrade Loan Scheme, which was launched in April of this year.
It is expected that a number of credit unions from the Irish League of Credit Unions will join the scheme in the coming weeks, which will allow more people to access these affordable loans in their own communities.
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. The home energy upgrade must also achieve a minimum 20% improvement in the energy performance of the building.
According to the Government’s National Retrofit Plan, almost 48,000 home energy upgrades were carried out last year including 1,336 deep retrofits, supported by the Government SEAI grants – an increase of 76% on the previous year.
Homeowners availing of the new retrofit loan scheme can invest in home upgrades such as wall insulation, heat pump installation and correct air ventilation to achieve warmer and greener homes.
Stephen O’Conor, the managing director of Electric Ireland Superhomes, said the participation of these two pillar banks, along with PTSB, significantly increases competition in the market, providing homeowners with more choice and giving them the opportunity to avail of rates that are significantly lower than what is currently available on the market.
“Everybody wants a comfortable warm home with low energy bills but despite the generous grants available from the SEAI, our research indicates that the upfront costs of a home energy upgrade are a significant barrier for homeowners who don’t have sufficient savings,” he said.
“This loan scheme will remove this barrier enabling more people to make their homes warmer, more comfortable, healthier, more sustainable and energy efficient,” he added.