Low-cost loan scheme for home energy retro-fit
The low-cost loan scheme for energy retrofitting has been welcomed in Waterford
A low-cost loan scheme, described as something that will revolutionise home energy retrofitting, has been welcomed by Waterford Green Party TD, Marc Ó Cathasaigh.
Commenting in the matter to Waterford News & Star, Deputy Ó Cathasaigh said the initiative will “transform Ireland's approach to home energy upgrades”.
Speaking in the wake of the scheme being launched, he said it will offer homeowners unprecedented access to affordable financing for retrofit projects.
Under the scheme, homeowners will be able to secure loans ranging from €5,000 to €75,000 at significantly reduced interest rates, to facilitate the completion of home energy upgrades and the financial savings that will follow.
He said the initiative involves the Government working with financial institutions to promote sustainability, combat climate change and deliver warmer and cleaner homes.
'I've been pushing to deliver this low-cost loan model since entering into Government,” said Deputy Ó Cathasaigh.
“This will put the costs of retrofitting your home within the reach of far more households and families, allowing more people to unlock the benefits that a retrofitted home brings - lower energy bills, lower carbon emissions and a warmer, healthier home,” he added.
He said he was particularly pleased that credit unions will be able to offer the product to members and he urged credit unions throughout County Waterford to get involved in the scheme.
“It sits so well with the credit union ethos, putting the wealth of the community to work within the community,” he said.
“'This is a real example of a triple win for people, place and planet,” he added.
“A retrofitted home is warmer for the householder, reduces air pollution in the local community and helps us meet our climate commitments.” Permanent TSB (PTSB) is the first bank to extend loans under the scheme, offering competitive rates starting from 3.55 per cent.
“The initiative is set to gain further momentum with leading financial institutions such as AIB, Bank of Ireland, Avant Money, and various credit unions poised to join in the upcoming weeks, offering comparable rates,” said Deputy Ó Cathasaigh.
“Previous home improvement loans, typically had interest rates ranging between 6 per cent to 7 per cent, or as high as 14 per cent for personal loans.
“Homeowners can expect to save €70 to €80 per month on repayments, for a €50,000 ten-year loan, equating to nearly €1,000 annually,” said Deputy Ó Cathasaigh.
“In addition, homeowners may unlock additional savings on mortgage repayments if their retrofit projects enable them to qualify for a green mortgage, typically available for Building Energy Ratings (BERs) of B3 or higher,” he added.
That could result in monthly mortgage savings of around €130, on a €200,000 mortgage over a 20-year term.
“The cumulative effect of lower loan and mortgage repayments could translate to combined savings exceeding €200 per month, even before factoring in reduced fuel bills,” said Deputy Ó Cathasaigh.
“The Low-Cost Loan Scheme is poised to build on the momentum of Ireland's retrofitting efforts, with approximately 1,000 homes already undergoing retrofitting weekly,” he added.
