AIB has released a report highlighting a healthy desire for home energy upgrades among Irish households but a lack of knowledge around the available options for financing these retrofits.
Achieving an energy efficient home is an amazing way to stay comfortable and save money, especially in the winter months. Generally, a BER of B3 or better is considered to be very strong.
However, there are sometimes fairly hefty upfront costs associated with upgrading a home to reach those heights of efficiency, but there is a lot of help out there if you know where to look.
AIB recently published a report that found a keen interest in such upgrades by Irish homeowners but a distinct lack of knowledge about available grants, even among those that went ahead with retrofits.
Irish households are keen to upgrade
According to the latest from AIB, 45% of Irish households expressed a desire to improve their home's energy efficiency with key motivators being lower monthly bills and increased comfort.
Energy-efficient homes consume less power on account of losing less heat, using the latest technologies and even producing some of their own power.
Upgrades such as better insulation, and the installation of modern heating systems and energy-efficient windows help maintain a consistent indoor temperature. This reduces drafts and cold spots which keeps you far more comfortable in the colder months.
Barriers to Upgrades
One of the most significant barriers for many consumers is the upfront cost. While the long-term savings can be substantial, the initial investment can be daunting. 62% of those surveyed said they have no plans for upgrades with cost being the most common reason cited.
Another major barrier is the lack of awareness about the available government grants and lower-cost bank loans or mortgages. This lack of information means that potential savings and incentives are often left untapped.
Current Energy Efficiency Measures
The AIB survey revealed that many consumers have already taken the first steps to improve their home's energy efficiency. The most common measures include installing double glazing and adding some form of internal insulation.
However, fewer consumers have implemented more comprehensive measures. Only 30% have installed external insulation which provides a higher level of thermal efficiency than internal. Additionally, only 16% reported having installed a heat pump and 12% solar panels. Shockingly, 27% of those that installed solar panels and 46% of people who installed heat pumps did not apply for readily available grants.
Future Plans for Energy Efficiency
These low numbers are expected to climb, though, as 24% of consumers are planning to install solar panels while 10% are looking into heat pumps.
However, be sure not to jump into upgrades without careful planning and consideration. By carefully selecting and implementing the most impactful measures, you can maximise your energy savings and improve your home's overall efficiency.
Available Financial Support
There is a huge amount of information and grants and low-cost loans available to those seeking to improve the energy efficiency of their homes.
Here are the most important points:
SEAI Grants:
- National Home Energy Upgrade Scheme:
- Provides grants for multiple energy efficiency upgrades to achieve a minimum BER B2 rating. Managed by registered One Stop Shops (e.g. Superhomes Ireland), this scheme offers grants up to €35,000.
- Better Energy Homes and Solar Grants:
- Offers individual grants for specific upgrades such as attic insulation and solar panels.
- Warmer Homes Scheme:
- Fully funded energy upgrades for eligible homeowners receiving certain social welfare payments. This scheme covers the full cost of upgrades, which can be up to €30,000.
Home Energy Upgrade Loan Scheme:
- Low-Interest Loans:
- The Home Energy Upgrade Loan Scheme provides low-interest loans ranging from €5,000 to €75,000 for homeowners who want to make their property more energy efficient. These loans have terms of up to 10 years.
- Eligibility Criteria:
- To qualify for these loans, homeowners must use them in conjunction with SEAI home energy upgrade grants. The loans are designed to cover the remaining costs after grants have been applied for, making it more affordable for homeowners to invest in energy upgrades.
Green rates from banks:
- The major banks in Ireland all offer varying discounts or low rates for mortgages on homes with a certain BER rating. You can check out options on our mortgages page.
- There are also green personal loans available for upgrades with very competitive rates. Find out what options might work for you on our loans page.
A sample order of events and available grants for upgrade
We know that was a lot to take on and consider so you might be feeling a little overwhelmed and unsure of where to start.
Just in case you would like some guidance on where and how to begin, here is a sample to-do list of upgrades in (arguably) the most efficient order.
Each step includes relevant grants and loans available from the government but remember, there are also options available from private banks so be sure to check those out too:
1. Initial Energy Assessment
- Grant: SEAI's Home Energy Assessment Grant
- This grant covers the cost of a professional energy assessment to identify the most impactful upgrades for your home.
2. Insulation
- Grant: Better Energy Homes Scheme
- Attic Insulation: Up to €1,500
- Cavity Wall Insulation: Up to €1,700
- External Wall Insulation: Up to €4,500
- Loan: Home Energy Upgrade Loan Scheme
- Low-interest loans ranging from €5,000 to €75,000 with terms up to 10 years.
3. Heating Controls
- Grant: Better Energy Homes Scheme
- Heating Controls Upgrade: Up to €700
- Loan: Home Energy Upgrade Loan Scheme
- Low-interest loans to cover the remaining costs after grants.
4. Windows and Doors
- Grant: Better Energy Homes Scheme
- Window and Door Replacement: Grants vary based on the type and number of windows/doors being replaced.
- Loan: Home Energy Upgrade Loan Scheme
- Low-interest loans to cover the remaining costs after grants.
5. External Insulation
- Grant: Better Energy Homes Scheme
- External Wall Insulation: Up to €4,500 (if not already used in step 2)
- Loan: Home Energy Upgrade Loan Scheme
- Low-interest loans to cover the remaining costs after grants.
6. Heat Pumps
- Grant: Better Energy Homes Scheme
- Heat Pump System: Up to €3,500
- Loan: Home Energy Upgrade Loan Scheme
- Low-interest loans to cover the remaining costs after grants.
7. Solar Panels
- Grant: Better Energy Homes Scheme
- Solar PV Panels: Up to €2,100
- Loan: Home Energy Upgrade Loan Scheme
- Low-interest loans to cover the remaining costs after grants.
8. Final Energy Assessment
- Grant: SEAI's Home Energy Assessment Grant
- This grant can be used again to verify the improvements and ensure your home meets the desired energy efficiency standards.
Finance your upgrades with bonkers.ie
If you want to learn more about green mortgages, read our article, 'What is a green mortgage?'
Additionally, you can learn more about green personal loans in our article, Your finance options for retrofitting.
Once you've weighed up your options, you can check out what mortgages and personal loans are on offer today that could get you over the line and into a nice, warm living room in the New Year.
