European Investment Bank makes €500m available for retrofitting

Bank to also provide €200m in funding over the next 40 years for the development of student accommodation across the country

Environment Minister Eamon Ryan, EIB president Werner Hoyer, and Finance Minister Michael McGrath sign an agreement on the new low-interest Home Energy Upgrade Loan Scheme. 

The European Investment Bank (EIB) has unveiled a series of investments which will see €500m in funding made available for home retrofitting and a further €200m for student accommodation across the country.

For the retrofitting loans, homeowners will be able to borrow between €5,000 and €75,000 on an unsecured basis over 10 years in order to undertake the retrofitting works. People availing of the loans will still be able to apply for retrofitting grants.

It is envisioned these loans can be used by people who want to undertake a deep-retrofit or who might prefer to undertake individual measures such as external wall insulation or the installation of a heat pump.

The interest rates on these loans will be significantly lower than those currently available on the market as a result of the combination of the EIB Group loan guarantee and a Government-funded interest rate subsidy.

The scheme will be delivered by the Strategic Banking Corporation of Ireland (SCBI), which will shortly be announcing an open call inviting lenders to participate in the scheme. Homeowners will be able to apply for the loans by early next year through participating retail lenders.

Environment Minister Eamon Ryan said the scheme was designed so all households could avail of it, as well as the grants.

“It is designed to get the cost down,” he said.

Mr Ryan added that half way through this month, the Government was ahead of the national target for retrofitting.

The Government is targeting 120,000 homes being retrofitted to a BER B2 rating by 2025, and 500,000 by 2030.

Student accommodation

In addition to the money for retrofitting, the EIB will be providing €200m in funding over the next 40 years for the development of student accommodation across the country. The Housing Finance Agency will be adding to the student loan investment, bringing the total fund up to €434m.

The EIB will provide €200m in funding over 40 years, with the rest coming from the Housing Finance Agency. It will support the accommodation construction as well as refurbishment investment at Irish universities and technological universities.

It is envisioned this investment will provide 2,700 new high-quality student beds.

Discussions are already under way with Irish universities and technological universities in relation to this new funding.