Green Loans Make the Switch to Solar Simple
Updated March 6, 2024
By Morgan Pierce
Abundance, access, affordability; those are the three words that time and again lead solar to outpace all the other runners in the race to power the planet – especially with the help of green loans and grants.
In a detailed story posted in late February, UK environmental magazine, Blue & Green Tomorrow, once again highlighted solar’s pre-eminence in helping to create “a sustainable, resilient energy system”.
“As the world increasingly turns its attention to sustainable living and combating climate change, renewable energy sources have taken centre stage. These clean, inexhaustible power sources are key to reducing our carbon footprint and achieving environmental goals… Solar energy shines as a beacon of sustainability, harnessing the sun’s abundant power to generate electricity.”
The piece uses data from the United States to make the point that more and more people are prioritizing climate change in their consumer choices.
“One recent poll showed that 78% of American consumers feel [sustainability] is important. They are taking new steps to put their money where their mouth is, which includes investing in renewable energy”.
Those same points could be made about consumers here at home. 7 out of 10 Irish people in a recent poll viewed climate change as an “emergency” and prioritized “sustainability” when choosing products. Like their counterparts around the globe, they are keen to find a way to incorporate the use of renewable energy into their homes.
We’ve written before about the benefits of going solar – that the sun offers a no-cost continuous source of energy; that once solar panels are up and running costs are low and maintenance is straightforward, and that these days installations can be built to fit almost any requirement.
Green Loans & Grants in Ireland
We’ve written, too, about the Irish government grants – administered by the Sustainable Energy Authority – that can help homeowners overcome the most significant obstacle they face in making the switch to solar – the initial cost of installation.
With SolarSmart, getting a solar energy system up and running costs between €7,500 – €12,000 depending on a family’s energy needs. That purchase price will be immediately reduced by a generous grant of up to €2,100 from the Irish government, bringing the amount for homeowners to pay down to between €5,000 – €10,000.
In January 2024, the Department for the Environment began cutting the size of grants for residential solar panels. The maximum €2,100 grant mentioned above is a cut of €300 on the amount available in previous years.
In a statement, the Department said it was always intended to cut the grant in instalments from 2024 onwards.
“As per the parameters set out in the Micro-Generation Support Scheme, the maximum grant levels were always designed to remain at €2,400 for 2022 and 2023, and then to reduce by up to €300 for each subsequent year, until it is anticipated that no grant support will be required from 2029 onwards. “
Even with grant aid at the hefty €2,100 rate, many homeowners will struggle to think of ways to finance the installation of solar panels or other renewable energy and energy-saving home improvements. Back in October, the Irish government and the European Investment Bank announced an innovative green loan scheme to make those kinds of home energy upgrades affordable for all.
Under the €500 million scheme, homeowners will be able to borrow from €5,000 to €75,000 on an unsecured basis for a term of up to 10 years. The interest rates will be significantly lower than those currently available on the market. This green loan scheme is the first of its kind for Ireland or the European Investment Bank.
The loans are specifically targeted at homeowners who are financing improvements that are also being grant-aided by the Sustainable Energy Authority of Ireland (SEAI). Combined with the grant aid, the green loans will eliminate the financial burden of “doing the right thing”.
The Department’s press release says that homeowners will soon be able to apply for the green loans through participating banks. A call to your bank should reveal details on the timeline.
There are still 1.3 million homes in Ireland that could benefit from solar panels. Looking ahead, now is the time to go solar.
Investing in solar panel systems can bring many benefits, including reduced energy bills, increased energy independence, and a reduced carbon footprint. If you are interested in installing a solar panel system, it is also worth exploring the different grant options available and seeking professional advice from one of our solar energy advisors.
Feel free to contact us for more information, we’re here to help.