7 Credit Unions join the Home Energy Upgrade Loan Scheme
• Easier access to low-cost loans in communities across Ireland
• Government-backed loans available to 267,000 members across 28 branches
Minister for Climate, Environment and Energy Darragh O’Brien and Minister of State with special responsibility for Financial Services, Credit Unions and Insurance, Robert Troy, today welcomed seven Credit Unions from the Irish League of Credit Unions (ILCU) as the latest lenders to join the Government-backed Home Energy Upgrade Loan Scheme.
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 from today, 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).
The €500 million Home Energy Upgrade Loan Scheme aims to encourage homeowners to invest in energy upgrades to make their homes warmer, healthier and more comfortable, with lower emissions and lower energy bills. 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 the Sustainable Energy Authority of Ireland (SEAI) and the EIB Group.
The Home Energy Upgrade Loan Scheme was designed with the needs of homeowners in mind, ensuring that access is simple and speedy with an emphasis on reducing the workload for homeowners. It provides unsecured loans (no requirement for the loan to be secured against the property being upgraded) ranging from €5,000 to €75,000, with repayment terms of up to 10 years. These loans help homeowners to carry out energy efficiency and renewable energy upgrades, such as insulation and heat pumps, that are also grant-aided by the SEAI.
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.
Today’s launch further enhances accessibility to more affordable retrofit loans in local communities. Together, these credit unions have a reach of 28 branches, and approximately 267,000 members. There’s also more flexibility for credit union members, who can apply, depending on the branch, either over the phone, in person or online. Many of these branches are located in regional areas and rural towns where the main banks are less represented, enabling greater accessibility to the scheme for homeowners around the country.
In addition to the seven credit unions, the Home Energy Upgrade Loan Scheme is also available from PTSB, AIB, Bank of Ireland, and Avant Money in partnership with An Post.
Speaking at the launch, Minister O’Brien said:
“Today is a significant development with low-cost, Government-backed retrofit loans even more accessible now that seven 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”.
Minister of State, Robert Troy said:
“I am very pleased to welcome the onboarding of seven credit unions from the Irish League of Credit Unions under the €500 million Home Energy Upgrade Loan Scheme. The addition of the credit unions to this Strategic Banking Corporation of Ireland backed scheme will lead to increased access to this scheme.
“The scheme provides benefits to both the homeowner and the Government. For the homeowner, it provides unsecured, 10-year low-cost finance to improve the energy efficiency of their homes and reduce their energy costs.
“From the Government’s perspective, the scheme assists in reducing our CO2 emissions, thus contributing significantly to meeting Ireland’s climate targets.
“I encourage anyone with an interest in availing of the Home Energy Upgrade Loan Scheme to contact participating finance providers, such as the participating entities from the Irish League of Credit Unions.”
June Butler, SBCI CEO, said:
“The SBCI welcomes today’s announcement of the participation of seven ILCU Credit Unions in the Home Energy Upgrade Loan Scheme.
“Credit Unions are, by tradition, deeply-rooted within local communities and the participation of Clonmel, Connect, First South, Listowel, Naomh Breandan, North Midlands, and Progressive in this government-backed scheme will further support homeowners across the country to make residential energy upgrades through accessible and more affordable finance.
“This collaboration not only facilitates the transition to more energy-efficient homes, but also underscores the vital role credit unions play in supporting local development and sustainability initiatives.
“By offering loans ranging from €5,000 to €75,000, with terms up to 10 years and interest rates significantly lower than standard personal loans, the Home Energy Upgrade Loan Scheme enables homeowners to enhance the comfort and energy performance of their homes.”
William Walsh, CEO of SEAI, said:
“SEAI is delighted with today’s announcement that seven credit unions are joining the list of providers of the Home Energy Upgrade Loan Scheme and will be offering competitive loans to their members to upgrade the energy efficiency of their homes.
“Credit unions are at the heart of their local communities and this offering will make it more affordable for homeowners in these areas to increase the comfort of their homes and lower their energy bills. The Home Energy Upgrade Loan Scheme supports homeowners with the upfront costs of home energy upgrades, working in parallel with SEAI’s home energy grant programmes, to make it even easier for homeowners to begin their retrofit journey and move away from fossil fuels”.
David Malone, Irish League of Credit Unions CEO, said:
“The Irish League of Credit Unions is delighted to support seven of our leading credit unions to join this important initiative. 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.”