Good Energy Home Loan: Rates, Eligibility & Ireland Guide

Ireland’s government has quietly built one of the cheapest ways to borrow for home energy upgrades — a scheme that sits between SEAI grants and standard bank loans. The Home Energy Upgrade Loan Scheme backs homeowners with public money to unlock rates significantly below market. But not every lender plays the same game, and the deadline is real.

Loan Amount per Property: €5,000 – €75,000 · Max per Customer: €225,000 (3 properties) · Backing: SEAI & SBCI · Deadline: 31 December 2026

Key facts at a glance

What is the SBCI home energy upgrade loan scheme?

The SBCI Home Energy Upgrade Loan Scheme is a government-backed program designed to make residential energy upgrades more accessible and affordable for eligible homeowners in Ireland. It sits alongside SEAI grants as part of the National Home Energy Upgrade Scheme, filling the gap when grants don’t cover the full cost of deeper retrofits.

Eligibility criteria

To qualify, you must be a private homeowner — including landlords — with a property in the Republic of Ireland. The scheme excludes mixed-use properties, short-term lets, and holiday homes. You need to obtain an eligible SEAI grant through an SEAI-registered One Stop Shop or Project Co-ordinator, and works must achieve at least a 20% improvement in your Building Energy Rating (BER). Critically, at least 75% of the loan must go toward energy upgrades net of the SEAI grant.

Supported upgrades

• Wall and attic insulation
• Air-to-water or ground-source heat pumps
• Solar thermal systems
• Deeper retrofits coordinated by a One Stop Shop

Solar PV panels alone are not eligible, but they can be included as part of a broader retrofit package. Fossil fuel boilers are explicitly excluded from the scheme.

What is the interest rate for SBCI loans?

The SBCI scheme includes a 2% government interest rate subsidy via SBCI, which allows participating lenders to offer rates well below typical personal loan products. The actual rate you get depends on which lender you choose and how much you borrow.

Rate details

Permanent TSB (PTSB) currently offers the lowest rate in the market: 2.99% for loans between €50,000 and €75,000, effective 15 January 2026. For smaller amounts, PTSB reduced its rate to 4.15%. AIB offers a variable APR of 3.55%. An Post uses a tiered structure: 7.00% fixed (7.20% APR) for loans under €10,000, dropping to 5.70% (5.90% APR) for €10,000–€19,999, and 3.69% fixed (3.75% APR) for amounts of €20,000 and above.

Comparison to standard home loans

SBCI loans are explicitly designed to undercut standard personal green loans available on the Irish market. The 2% government subsidy effectively buys down the cost, making these unsecured loans cheaper than many secured mortgage top-ups.

What is the good energy home loan 1%?

The “1% loan” reference you may have seen online is an informal shorthand that conflates the government subsidy rate with actual borrowing costs. In practice, no lender currently advertises a 1% APR on these loans — the lowest available is PTSB’s 2.99%.

Scheme overview

The Home Energy Upgrade Loan Scheme is backed by a guarantee from the European Investment Fund and the European Investment Bank, with support from the Department of Climate, Energy and the Environment. Ministers Eamon Ryan, Michael McGrath, and Neale Richmond launched it as part of a €500 million government-backed initiative. The scheme is administered by the Strategic Banking Corporation of Ireland (SBCI) through a network of participating lenders including AIB, PTSB, An Post, and credit unions such as Progressive CU.

The 1% rate context

The 2% government subsidy through SBCI reduces the effective cost of borrowing, but this is not passed through as a 1% rate. What matters for comparison is the APR you actually pay, which ranges from 2.99% to 7.20% depending on lender and loan size. Always compare the full APR, not the subsidy rate, when evaluating offers.

What are good energy home loan rates?

The question of what counts as a “good” rate depends on what you’re comparing it to. SBCI loans sit below standard personal loan products, but rates vary significantly across lenders.

Current rates

As of early 2026, the spread looks like this: PTSB leads at 2.99% APR for €50k–€75k loans, AIB sits at 3.55% variable APR, and An Post ranges from 3.75% APR at the €20k+ tier to 7.20% APR for sub-€10k loans. Credit unions set their own terms, typically mirroring or slightly improving on SBCI’s base pricing.

Vs mortgage top-ups and 0% offers

For homeowners with existing mortgages, a mortgage top-up might seem like a natural comparison. However, SBCI loans do not require a charge over your property — they are unsecured — which changes the risk profile. Some credit cards offer 0% balance transfer deals, but these are typically short-term (12–18 months) and unsuitable for funding a multi-year retrofit. SBCI loans provide fixed rates over 1–10 years without the pressure of a promotional expiry.

“PTSB has today announced it is reducing variable interest rates… including a new market-leading rate of 2.99%.”

— PTSB announcement (January 2026)

“The Home Energy Upgrade Loan Scheme is designed to make residential energy upgrades more accessible and affordable for eligible homeowners.”

— SBCI scheme description (official)

What are good energy home loan requirements?

Beyond the basic eligibility, the practical requirements for accessing this scheme centre on three things: your BER assessment, your chosen lender, and your financial documentation.

Application process

• Start with an SEAI-registered One Stop Shop or Project Co-ordinator to obtain a Home Energy Summary Report
• Confirm the works will achieve at least 20% BER improvement and qualify for an SEAI grant
• Apply to a participating lender — PTSB, AIB, An Post, or a participating credit union
• Provide standard identification, proof of income, and the SEAI assessment documentation
• Receive loan approval and proceed with works through the registered contractor

Note that completing an SEAI report does not guarantee loan approval — each lender assesses your creditworthiness independently. For more information on the Home Energy Upgrade Loan Scheme, you can Prestiti Italia confronta offerte online.

Property eligibility

The property must be located in the Republic of Ireland. Rental properties are eligible, provided the landlord meets the other criteria. Properties must comply with environmental legislation. Mixed-use buildings, short-term lets, and holiday homes are explicitly excluded under current rules.

How rates compare across lenders

Three lenders, three very different rate structures — the pattern is clear: borrowing more gets you a better deal.

The implication: if you can borrow at least €20,000, An Post’s fixed rate offers certainty. If you need €50,000 or more and prioritise the lowest cost, PTSB currently wins on rate.

What the scheme covers

Six categories of specification that determine whether your upgrade qualifies for the loan.

The pattern: the scheme is calibrated for serious retrofits, not minor cosmetic upgrades. The 75% spend rule and 20% BER threshold together ensure the loan funds meaningful energy improvements.

How to apply step by step

1. Get a One Stop Shop assessment. Contact an SEAI-registered One Stop Shop to arrange a Home Energy Summary Report. This identifies which upgrades are needed and confirms they will achieve the 20% BER improvement threshold.
2. Confirm SEAI grant eligibility. The works must qualify for an SEAI grant. Your One Stop Shop coordinator handles this — grants are administered by SEAI, not the lender.
3. Choose your lender. Compare participating lenders — PTSB, AIB, An Post, and participating credit unions. Factor in loan size to your rate estimate; An Post’s tiered rates make this particularly important.
4. Submit your application. Provide identification, proof of income, and the SEAI Home Energy Summary Report. Note: SEAI report completion does not guarantee loan approval.
5. Complete the works. Once approved, works proceed through the registered contractor. The lender releases funds according to its own disbursement schedule.
6. Repay over up to 10 years. Flexible repayment dates are available. No charge is taken over your property.

Where things are still uncertain

For all the scheme’s solid government backing, some details remain unclear — worth tracking if you’re planning to apply.

Summary

The SBCI Home Energy Upgrade Loan Scheme is Ireland’s most affordable official route to funding deep home energy retrofits — if you borrow enough to access the lower tiers. PTSB’s 2.99% rate as of January 2026 sets the benchmark, but AIB and An Post offer viable alternatives, particularly for mid-range loans. The 75% spend rule and 20% BER improvement requirement ensure the scheme funds what it promises. Irish homeowners planning a genuine retrofit should act before December 2026 — waiting risks missing a subsidy that may not be repeated.