FEBEA - the European Federation of Ethical and Alternative Banks and Financiers, with the support of EcoVision (Ireland) and the University of Comillas (Spain), presented the financing options available in Ireland for building renovation of Single Family Households. The RenoVisor partner has carried out a mapping of the subsidies and loan schemes available in the Irish pilot to contribute to the development of the RenoVisor Single Family Home tool, which will be first launched in Ireland.
The country, especially through the Sustainable Energy Authority of Ireland (SEAI), offers a wide variety of grants to boost home energy upgrades. At the same time, various financial institutions offer loans to finance the costs not covered by the grants.
Grants for building renovation in Ireland
The SEAI offers two main ways of carrying out renovation works through two types of grants: one of them is the complete home energy upgrade. An advantage of this grant is that it is managed by One Stop Shops, which are companies offering services to minimise the difficulties of home renovations such as completing grant applications, contractor works, finance support or doing home energy assessments. Moreover, it is deducted from costs of works upfront, and therefore you only pay the costs of works not covered by the grant, (instead of receiving it after doing the payment). Some of the eligible renovation measures are heat pump systems, insulation, windows and doors upgrades or solar panels, among others. This is definitely an effective way to increase the overall energy efficiency of homes in Ireland, but what about those that prefer doing step-by-step upgrades?
There is where the other type of grant comes into play. Through the grants for individual energy upgrades, the SEAI offers the possibility to upgrade your home on your own timeline and budget, managing the project yourself using a registered contractor or choosing a One Stop Shop to manage it for you. In contrast with the grants for complete home energy upgrades, these grants are received after carrying out the works selected, providing more flexibility to beneficiaries in order to let them choose individual works they are interested in rather than increasing the overall energy efficiency of the house. The types of upgrades covered by these grants are similar to those covered by the other ones.
Finally, as none of these grants cover all the renovation costs, there is always an amount to be covered by beneficiaries or loans: indeed, the SEAI has made available as well free energy upgrades through the Warmer Homes Scheme. This scheme is exclusively designed for homeowners receiving certain social welfare payments and the eligible upgrades include attic insulation, wall insulation, smaller measures like lagging jackets, draught proofing and energy efficient lighting and occasionally, renewable heating systems or windows. However, in this case homeowners cannot choose upgrades themselves, but they are chosen for them. Also, due to the high demand for this grant, it can take up to 24 months from when they apply until renovation works are fully completed.
On the other hand, local authorities in Ireland administer a different type of grant; the Vacant Property Refurbishment Grant, which is a payment you can get if you are turning a vacant house or building into your permanent home or rental property. They also offer an extension of that grant called Vacant Above the Shop Grant, which can be used to convert a vacant space above a shop so it can be used as a home.
Loans for building renovation in Ireland
In order to complement the grants provided by the SEAI, the Strategic Banking Corporation of Ireland (SBCI) offers the Home Energy Upgrade Loan Scheme. Through this scheme, 11 Irish banks and credit unions offer loans with a lower interest rate compared with other green loans on the market. They are designed for those that have already gotten SEAI grants, as the purpose is to finance the costs not covered by the grants. At the same time, the upgrade works must be carried out by a SEAI registered One Stop Shop or Project Coordinator. It is not made for people managing the renovation projects themselves (as allowed by the individual energy upgrade grants). Some other features of these loans are flexible repayment terms from 1 to 10 years and amounts ranging from 5.000€ to 75.000€ per property (maximum 3 properties), with no charge taken over the property.
However, these loans will only be available until 31 December 2026. There is still no news about what will happen after this date. For this reason, it is also useful to know that several credit unions in Ireland offer green loans for building renovation that do not require applicants to have an approved grant. Many of them are included in EcoVision’s website, as well as green mortgages offered by some Irish banks, which offer lower interest rates for higher energy rated homes.
In conclusion, we have seen that institutions like the Sustainable Energy Authority of Ireland or the Strategic Banking Corporation of Ireland are trying to make it easier for those interested in improving their home’s energy efficiency. At the same time, there are fully-funded options to do so for vulnerable people and government-backed loans to cover the costs not covered by grants.
FEBEA and the RenoVisor partners will continue this research work in the Dutch and Spanish pilots and incorporate the information into the tools so that users can get the most out of the opportunities available to them.
