27th August 2022
The government have increased to €50,000 the level of an interest-free loan that is available to owner-occupiers and landlords for works of home energy conservation.
The loan is called l’éco-prêt à taux zéro.
In addition to there being no interest payable there are no maximum income restrictions on eligibility.
Neither is approval of the grant subject to means-testing; whatever your income you have an entitlement, provided you can demonstrate you can meet the repayments.
The property must be your principal residence and must be at least 2 years old. Previously the property needed to have been built before 1990.
Landlords are also eligible, provided the property is occupied as a principal residence by the tenant. If the property has not been used as a main home this condition must be fulfilled within six months of completion of the works.
The duration of the loan is normally 15 years but can be up to 20 years where there is a significant overall improvement in energy performance, involving several elements of work.
Eligible works include roof/loft insulation, wall or floor insulation, energy efficient space and water heating, double glazing, replacement doors, as well as renewal of a septic tank system. These works must comply with specified minimum standards of performance.
Following completion of the work the property must have an energy performance of not less than 331 kWh/m2 per year on heating, cooling and domestic hot water production.
The amount of the loan depends on the extent of the works:
- Up to €15,000 for a single action from the list of eligible works, except for the replacement of windows, in which case the ceiling is €7,000;
- Up to €25,000 for two of the seven eligible actions;
- Up to €30,000 if you carry out three or more of the seven eligible actions and for work that achieves a minimum overall energy performance;
- Up to €50,000 for work that achieves a minimum energy gain of 35% and enables a dwelling to be lifted from an energy rating of F or G;
- Up to €10,000 for a septic tank alone.
These thresholds are for supply and installation.
In order to proceed, you might be best advised need to make enquiries to your local housing renovation advisory service (ANAH) at Rénovation info service. You will also need to discuss direct with your bank as they administer the loans.
You should not commence the eligible works until the loan has been approved or it will invalidate the application.
You will be required to use a registered builder, who must also have the qualification label 'RGE - Reconnu Garant de l’Environnement'. This rule does not apply to new septic tank installations.
Given the complexity of such a project the engagement of an independant specialist to undertake an audit of your property and to assist in the specification of works and equipment is strongly recommended.
You have three years to complete the works following consent to the loan.
Since 1st July 2022 the procedure for approval of the grant and release of the funds has been greatly simplified, reducing the amount of information you are required to supply to the ANAH.
Prêt Avance Rénovation (PAR)
Despite the more generous loans now available the repayments may remain too high for many low-income households.
In order to assist such households a mortgage called ' Prêt Avance Rénovation (PAR)' has been introduced by the government.
For those over 60 years of age, it is equivalent to a lifetime mortgage, repaid on the sale of the property or through inheritance. For those under 60, interest only is payable, with the capital paid on sale or death.
There are no set-up fees and the borrower need not take out mortgage protection insurance.
The loan is guaranteed by a mortgage taken on the property, combined with a public guarantee provided by the State for 75% of the amount of the loan granted, in the event that the sale of the property does not cover it.
Grants
It is possible to combine the works for grants for energy improvement. Although means testing does apply for grants, the income thresholds are not ungenerous. You can read more in our guide below.