What Is the Home Energy Upgrade Loan and How Does It Work?

What Is the Home Energy Upgrade Loan?

The Home Energy Upgrade Loan is a government-backed loan scheme designed to help Irish homeowners finance energy upgrades for their homes. Developed by the Strategic Banking Corporation of Ireland (SBCI) in partnership with SEAI, it offers rates that start from 2.99% and vary by lender. Most rates are variable. That is usually well below standard personal loan rates, which typically range from 7% to 11%. The scheme is open until 31 December 2026 or until funding runs out.

Where Can You Apply?

You apply directly to the lender of your choice, not to SEAI or the SBCI. Each lender sets its own rate and has its own application process. Rates as of 14 October 2026:

Banks

• Bank of Ireland: 3.0% APR (2.95% variable)
• AIB: 3.55% APR (3.50% variable)
• PTSB: 4.15% (€5,000–€14,999), 3.75% (€15,000–€24,999), 3.35% (€25,000–€49,999), 2.99% (€50,000–€75,000)
• An Post Money (Avant Money): 7.2% APR fixed (€5,000–€9,999), 5.9% APR fixed (€10,000–€19,999), 3.75% APR fixed (€20,000–€75,000)

Credit unions

• Naomh Breandan Credit Union: 2.99% APR
• Connect Credit Union: 3.19% APR
• Clonmel Credit Union: 3.3% APR
• North Midlands Credit Union: 3.98% APR (variable)
• Listowel Credit Union: 4.5%
• First South Credit Union: No rate published
• Progressive Credit Union: No rate published

Rates last verified 14 October 2026 (sources: SBCI and each lender’s own website). Rates change and most are variable, so always confirm the rate with the lender before you apply.

Loan Amounts and Terms

The loan is flexible enough to cover most retrofit projects:

• Minimum loan: €5,000
• Maximum loan: €75,000
• Term: Up to 10 years
• Interest rate: Set by each lender, from 2.99%. Most are variable, so the rate can change over the term. An Post Money (Avant Money) offers fixed rates.
• Fees: Individual lenders may have their own fees. Ask before you apply.

For example, a €15,000 loan over 7 years would cost about €198 a month at 2.99% (about €1,643 in total interest) or about €218 a month at 5.9% (about €3,346 in total interest). Which rate you get depends on the lender and the amount you borrow.

What Can the Loan Be Used For?

The loan covers a wide range of energy upgrade works, including:

• Attic, wall, and floor insulation
• Heat pump installation
• Solar PV panels and battery storage
• Window and door upgrades
• Heating controls and ventilation systems
• Any combination of the above as part of a whole-house retrofit

The key requirement is that the works must contribute to improving the energy efficiency of your home. A BER assessment is typically required to confirm the upgrades being carried out.

Combining the Loan with SEAI Grants

One of the best features of this loan is that it can be combined with SEAI grants. Here is how it works in practice:

• You get quotes for your energy upgrades (e.g., insulation + heat pump = €18,000)
• You apply for SEAI grants (e.g., €9,500 in grants approved)
• You take out a Home Energy Upgrade Loan for the balance (e.g., €8,500)
• The contractor carries out the work
• SEAI pays the grant, and you repay the loan over the agreed term

This means you can carry out a significant retrofit with little or no upfront cash. The monthly loan repayment is often offset — partly or fully — by the savings on your energy bills.

How to Apply

The application process is straightforward:

• Get a BER assessment to identify what upgrades your home needs
• Get quotes from SEAI-registered contractors
• Apply for SEAI grants for eligible works
• Apply for the Home Energy Upgrade Loan at your chosen lender
• Once the loan is approved, proceed with the works

Most lenders will process the loan application within 1–2 weeks. Standard credit checks apply, and you will need to provide proof of income and details of the planned works. Having your SEAI grant approval letter can strengthen your application.

Is It Worth It?

For most homeowners, the answer is yes. At the lower rates the cost of borrowing is modest, and for many homes the energy savings from a good retrofit will offset a large part of the monthly loan repayment, although this depends on your home and your usage. You also increase the value and comfort of your home, reduce your carbon footprint, and protect yourself against future energy price rises. If you have been putting off a retrofit because of the upfront cost, this loan can help, as long as you apply before the scheme closes on 31 December 2026 or funding runs out.