7 credit unions join the Home Energy Upgrade Loan Scheme
-
From: Department of the Environment, Climate and Communications
- Published on: 4 April 2025
- Last updated on: 9 April 2025
- 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 7 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 7 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 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."
Minister of State Robert Troy said:
"I am very pleased to welcome the onboarding of 7 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 7 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 7 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 7 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."
Further details on the Home Energy Upgrade Loan Scheme are available on both the SBCI and SEAI websites.
ENDS
Notes to the Editor
Key features of loans under the Home Energy Upgrade Loan Scheme (HEULS)
- Homeowners (including small, non-corporate landlords) may borrow between €5,000 and €75,000 for up to 10 years
- The credit unions will offer HEULS loans ranging from 2.99% to 4.5%
- Loans are unsecured, that is, there is no charge taken over the property as is the case with a mortgage
- The purpose of the loan must be to carry out home energy upgrade/retrofit works
- The residential property being upgraded must be located in the Republic of Ireland
- The home energy upgrade/retrofit works must qualify for a home energy grant from the SEAI and must be projected to result in a minimum 20% improvement in the energy performance (Building Energy Rating – "BER") of the property
- The works must be carried out by an SEAI registered One Stop Shop or Communities Project Coordinator. These SEAI registered contractors offer homeowners all the services required for a complete home energy upgrade and can advise whether the planned works meet the requirements for the loan scheme, as well as advising on the grants that may be available from SEAI
- Up to 25% of the amount borrowed may be spent on non-energy efficiency works, for example, other home improvement works carried out at the same time as energy upgrade works (excluding any form of installation of fossil fuel boilers)
- Loans are available for drawdown up to 31 December 2026 or until the scheme has been fully subscribed (whichever is earlier)
- Loans are subject to the normal lending criteria, terms, and conditions of the participating finance providers
Available interest rates and location of the relevant credit unions
| Name | Locations | Membership | Loan Book | HEULS Interest rate |
| Clonmel | South/Tipperary, South Kilkenny and West Waterford – branches in Clonmel, Fethard and Mullinahone. | 32,000 | €71.5 million | 3.25% |
| Connect | East Louth – branches in Dundalk, Blackrock and Termonfeckin. | 16,000 | €33.9 million | 3.14% |
| First South | Cork City and Kinsale – branches in Ballyphehane, Ballinlough, Dillons Cross, Kinsale and South Mall. | 39,500 | €67.3 million | 4.2% |
| Listowel | Kerry – branches in Listowel and Ballybunion. | 16,700 | €21 million | 4.5% |
| Naomh Breandan | East Galway – branches in Loughrea and Woodford | 14,500 | €32.7m | 2.99% |
| North Midlands | Longford and Westmeath – branches in Mullingar, Castlepollard, Kinnegad, Longford, Rochfortbridge and Lanesboro Ballyleague. | 64,500 | €121 million | 4.2% |
| Progressive | North Dublin – branches in Balbriggan, Baldoyle, East Wall, Fairview, Rush, Swords (Rivervalley) and Ballymun. | 61,000 | €73.7 million | 4.2% |
National Retrofit Plan
The National Retrofit Plan sets out how the government will deliver on our retrofit targets. The plan is designed to address barriers to retrofitting across four key pillars: driving demand and activity; financing and funding; supply chain, skills and standards; and governance. For each pillar, barriers were identified and time-bound policies, measures and actions were put in place to address them.
The expansion of the Home Energy Upgrade Loan Scheme is the latest commitment under the Plan to be delivered.
Examples of some of the other initiatives introduced under the plan include:
- Enhanced SEAI grant schemes with expanded eligibility and higher grants
- Simplified application processes for grants with faster approvals
- A network of One-Stop-Shops
- Reformed supports for energy poor households under the Warmer Homes Scheme (expanded eligibility, increased depth of retrofit, prioritisation of the worst performing homes, higher numbers of homes upgraded)
- New supports for area-based retrofit projects
- A pilot for traditional buildings
- Enhanced supports for apartment complexes
- A tax incentive to drive retrofitting in the rental sector
- VAT on heat pumps reduced to 9%
- VAT on solar panels reduced to 0%
Residential retrofits: Key statistics for 2024
SEAI residential and community schemes
- Capital expenditure of €421 million (up 30% on 2023)
- Almost 54,000 home energy upgrades (up 13% on 2023)
- Almost 22,000 B2 upgrades completed (up 24% on 2023)
- Over 7,700 (Warmer Homes Scheme) fully-funded (no cost to the household) energy upgrades for low-income households (up 31% on 2023)
Local Authority Retrofit Programme
In addition to the above, over 2,600 homes were upgraded to B2 under the Local Authority Retrofit Programme.
About the Strategic Banking Corporation of Ireland (SBCI)
The Strategic Banking Corporation of Ireland (SBCI) was established by the Department of Finance in September 2014 to ensure that SMEs in Ireland have access to stable, lower-cost, and long-term funding options. By supporting and developing an effective credit market for SME finance, the SBCI makes it easier for SMEs to obtain the financing they need to thrive and stimulate economic activity in Ireland.
Since its inception, the SBCI has expanded its range of supports, providing liquidity and risk-sharing guarantee schemes to a wide array of finance providers. This expansion has given Irish SMEs more choices in accessing affordable finance for their businesses. Over the past decade, the SBCI has provided over €4 billion in funding to more than 60,000 Irish businesses across various sectors.
In 2024, the SBCI launched its first consumer loan scheme, the Home Energy Efficiency Loan Scheme, on behalf of the Department of the Environment, Climate and Communications, to make residential energy upgrades more accessible and affordable for eligible homeowners.
About the Sustainable Energy Authority of Ireland (SEAI)
SEAI is Ireland's national energy authority investing in, and delivering, appropriate, effective and sustainable solutions to help Ireland's transition to a clean energy future. SEAI works with Government, homeowners, businesses and communities to achieve this, through expertise, funding, educational programmes, policy advice, research and the development of new technologies. SEAI is funded by the Government of Ireland through the Department of the Environment, Climate and Communications.
About the European Investment Bank (EIB) and European Investment Fund (EIF)
The EIB is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIF is part of the EIB Group.
About ILCU
ILCU is the largest Credit Union representative body on the island of Ireland. Founded in 1960 with the aim of providing representation, leadership, co-operation, support and development for Credit Unions in both Northern Ireland and the Republic of Ireland, ILCU today has an affiliated membership of more than 270 Credit Unions.