SBCI Home Energy Upgrade Loan Scheme explained
Thinking about a retrofit, but put off by the cost? The Home Energy Upgrade Loan Scheme (HEULS) is a government backed, low-interest loan for homeowners. Here’s what it covers, who qualifies, what it costs, and how to apply.
At a glance SBCI Home Energy Upgrade Loans
The SBCI Home Energy Upgrade Loan is a low-interest, unsecured personal loan for home energy upgrades, backed by the Strategic Banking Corporation of Ireland (SBCI) and subsidised by the Irish government.
What is the Home Energy Upgrade Loan Scheme?
It’s a government-backed initiative that offers discounted loan interest rates to help homeowners finance energy efficiency upgrades. The loan works hand-in-hand with grants from the Sustainable Energy Authority of Ireland (SEAI).
Launched in April 2024 and established by the Strategic Banking Corporation of Ireland (SBCI)({:target=”_blank”}, it is backed by a guarantee from the European Investment Fund and European Investment Bank, and supported by the Department of Climate, Energy and the Environment.
PTSB was the first partner bank to join the scheme, followed by other Irish banks and some credit unions.
How does the scheme work?
While SEAI grants help with the high cost of retrofits and energy upgrades, they rarely cover the whole bill.
The Home Energy Upgrade Loan Scheme (HEULS) fills this gap by offering unsecured personal loans at much lower interest rates than standard green loans, thanks to a 2% annual government subsidy paid straight to the lender.
The HEULS loan and SEAI grant are designed to work together, and the upgrades need to boost your Building Energy Rating (BER) by 20% or more.
How your loan and SEAI grant work together
You can’t get a HEULS loan without an SEAI grant, so these are the steps you’ll need to take:
- Contact an SEAI-registered One Stop Shop or Community Project Co-ordinator
- Have them assess your home and prepare a Home Energy Summary Report, covering upgrade options, projected BER improvement, and costs
- Apply for the relevant SEAI grant
- Apply to a participating lender for the HEULS loan to cover any shortfall
How much can you borrow?
The loan covers the gap left after the SEAI grant, not the entire project and 75% of it must be used for qualifying energy efficiency works.
- Minimum loan: €5,000 per property
- Maximum loan: €75,000 per property
- Max number of properties: Up to three, with a combined maximum €225,000
- Term: One to 10 years, depending on the amount borrowed
Which banks offer the SBCI Home Energy Upgrade Loan?
Four regulated lenders currently participate in the scheme, plus seven credit unions:
Rates and criteria vary by lender, so it’s worth getting more than one quote before applying.
What are the rates for SBCI loans?
Here are the latest available starting rates from participating lenders:
| Lender | Starting APR | Rate type | Need to know | |
|---|---|---|---|---|
| Bank of Ireland | 3.00% | Variable | Rates start at 2.95% (3.00% APR); offers an option to defer the first three monthly repayments | |
| PTSB | 3.00% | Variable | Rates reduced to 2.99% (3.00% APR) specifically for larger loan amounts between €50,000 and €75,000 | |
| AIB | 3.55% | Variable | 3.50% interest rate (3.55% APR); features no penalties for early repayment | |
| An Post / Avant Money | 3.75% | Fixed | Tiered structure: 3.75% APR for loans over €20k; 5.90% for €10k–€20k; 7.20% for €5k–€10k | |
| Participating credit unions | Varies | Variable | Seven credit unions participate with rates starting around 2.99%, though exact rates vary by specific branch |
What can the loan be used for?
This is a loan for a proper retrofit plan, not a single small upgrade.
The works must be grant-aided by the Sustainable Energy Authority of Ireland (SEAI), and must lift your home’s Building Energy Rating (BER) by at least 20% compared with its current rating.
At least 75% of your total loan amount must be spent on qualifying energy efficiency works that are grant-aided by the SEAI.
These core upgrades include:
Note: Solar PV panels alone aren’t eligible, though they can be included as part of a wider retrofit funded through the National Home Energy Upgrade Scheme or a Community Energy Grant.
Can you use part of the loan for refurbishment after the retrofit?
Because major home energy upgrades often cause disruption, the scheme allows you to use up to 25% of the borrowed funds for related expenses or non-eligible home improvements.
You can use this portion for:
What sort of work does the loan exclude?
What are the eligibility criteria?
The cost of the energy upgrade works you plan to do, after deducting the value of the SEAI grant, must be at least 75% of the total loan amount.
All upgrade works must take place on a property in the Republic of Ireland as the scheme doesn’t cover a second home abroad.
To qualify, you must:
- Apply in your own name, not as a company or on behalf of someone else
- Own an eligible residential property located in the Republic of Ireland
- Avail of (or have applied for) an eligible SEAI grant for the same works
- Have the works carried out by an SEAI-registered One Stop Shop or Community Project Co-ordinator
- Ensure the upgrade delivers at least a 20% improvement in your BER
If you don’t meet these conditions, your loan will not qualify for the Home Energy Upgrade Loan Scheme. Removal from the Scheme could result in your finance provider issuing a demand for repayment or changing your loan terms to increase your interest rate.
Case study
Sarah and Mark, a couple in Cork, want to borrow €20,000 over 10 years to retrofit their 1980s semi-detached home. They are choosing between a standard home improvement loan and the SBCI Home Energy Upgrade Loan.
- Option 1: Standard home improvement loan (7% APR). With a typical high street bank or credit union, their monthly repayments would be around €232. Over a decade, this would cost them €7,866 in total interest.
- Option 2: SBCI Home Energy Upgrade Loan (3% APR) Because they are getting an SEAI grant and boosting their home’s BER by at least 20%, they qualify for the SBCI scheme. Their monthly repayments drop to €193, with total interest coming in at just €3,174.
The result: By qualifying for the SBCI loan, the Cork couple saves €39 a month and €4,692 overall. Furthermore, because the scheme allows up to 25% of the funds to go towards related non-energy expenses, they can use €5,000 to plaster and paint the rooms disrupted by the insulation works.
How to compare the HEULS loan
To find the best deal on your Home Energy Upgrade Loan Scheme (HEULS) and find the right fit for your budget before applying, use the loan repayment calculator and loan comparison tools on Switcher.ie.
Start by selecting your loan type, then enter the specific amount you need to borrow. Finally, select your preferred repayment term, which ranges from one to 10 years.
Once you input these details, our comparison tool will show all participating lenders with your:
- estimated monthly repayments
- the total interest you will pay
- the overall cost of the credit
This makes it easy to compare typical APRs and compare interest rates against standard home improvement loans or regular green loans.
It’s also useful to look at any special features or requirements of each lender. For example, check things like your options for deferring your loan, early repayment fees, and savings requirements.
When comparing, keep in mind that while a longer repayment term will lower your monthly bills, it will also increase the total amount of interest you pay over the life of the loan.
How to apply for the loan
With four lenders offering the scheme, interest rates, costs, lending criteria, and approval speed differ enough to make comparison worthwhile, so make sure you compare loans first.
Standard income and affordability checks (including a credit assessment) apply, as with any personal loan.
Applying follows a similar path to any personal loan, with a couple of extra checks. You’ll need:
- Home Energy Summary Report
- SEAI grant details
- The property’s Meter Point Reference Number (MPRN)
Approval of your Home Energy Summary Report or SEAI grant doesn’t automatically guarantee loan approval.
What to know before you apply
The SBCI monitors loans against SEAI data from drawdown through to completion, so ongoing eligibility applies.
A recent review by the SBCI found that roughly one in twenty loans issued under the scheme weren’t fully compliant, mostly due to the 75% spend requirement or the failure to use a registered installer.
If a loan is found to be in breach, the lender can increase the interest rate or demand repayment, so keep receipts and ensure your installer is properly registered.
- The scheme has a limited time. Loans are available until 31 December 2026, or until each lender’s allocated funding is exhausted, whichever comes first. Some lenders have capped funding pots, so don’t leave an application to the last minute.
- Rates can go up as well as down. Because rates are variable, always check the lender’s current published rate before applying as several lenders cut rates through 2025 and into 2026.
Is it worth it?
If you’re already planning a retrofit and qualify for an SEAI grant, this type of home improvement loan is generally one of the cheapest ways to fund it.
The bottom line: For a small, one-off job that doesn’t alter your BER, it won’t be the right fit, but for a proper insulation and heating upgrade, it could save you thousands of euros on the loan’s total cost.
SBCI Loan FAQs
What's the most I can borrow with a Home Energy Upgrade Loan?
Between €5,000 and €75,000 per property, up to a combined maximum of €225,000 across three properties.
Can I get the HEULS loan without an SEAI grant?
No. The loan is only available to homeowners who are also availing of an eligible SEAI grant for the same works.
Is the Home Energy Upgrade Loan secured against my property?
No. It’s an unsecured personal loan, so there is no charge placed over the property, and you’re not using your home to secure the loan.
When does the Home Energy Upgrade Loan Scheme end?
Loans are available until 31 December 2026, or until each lender’s allocated funding is fully subscribed, whichever happens first.
Can I get the SBCI loan to retrofit my rental property?
Yes, in some cases. Rental properties can qualify, though rules may differ depending on whether the property has been rented in the last 12 months or will be in the next 12 months. Some lenders, including An Post Money, aren’t currently offering loans for properties with recent or planned rental use.
How quickly can I get a Home Energy Upgrade loan?
It depends on the amount you borrow and the lender’s application process. Some lenders offer a three-hour decision window for straightforward applications submitted during business hours; others may take longer.
Get in touch with your lender to find out.
Can I pay off my Home Energy Upgrade loan early?
Yes, you can pay off your Home Energy Upgrade Loan early without incurring any early repayment penalties.
The participating lenders structure these loans either as variable rate loans or waive early repayment fees, allowing you to make extra repayments or clear the balance entirely at any time, penalty-free.
Here are all the current participating lenders’ specific early repayment terms:
- Bank of Ireland: They offer the SBCI loan as an unsecured variable-rate loan and state that you can make extra repayments to pay off your variable rate loan early and pay less interest with “no penalty fees”.
- PTSB: Structures the SBCI loan in the same way as their standard personal loans, which are variable-rate. They list “No early repayment fees” and offer flexible repayments as a key feature of this specific loan product.
- An Post Money: While An Post only offers fixed-rate personal loans, they state in their loan terms and help sections that if you choose to pay your personal loan off early, you “will not incur any early repayment penalties”.
- AIB: AIB’s SBCI loan operates on a variable interest rate so you can overpay or clear the loan early without facing the standard fixed-rate “breakage” fees.
Currently, seven credit unions also participate in the scheme. By law and general policy, credit unions in Ireland do not charge hidden fees, transaction charges, or early repayment penalties. This means you can clear your loan early or make additional lump-sum repayments at any time without penalty.
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