SBCI Energy Efficiency Loan Scheme Ireland A Green Business Loan Scheme
What is the Energy Efficiency Loan Scheme (EELS)?
The Energy Efficiency Loan Scheme is a business loan scheme to help Irish businesses reduce their carbon footprint through cheap and easy to access finance.
Figures at a glance:
- Loan amounts of €10,000 to €150,000
- Loan terms of 1 to 10-years
- Interest rates of 4.79% are being advertised (source: Bank of Ireland Website ).
Main Benefits
- Rates must be min. 1% lower than comparable loans
- Easier to access than other loans
- No personal guarantees required (or allowed)
- Financing scheme for SMEs (small and medium-sized enterprises)
Who's providing the Energy Efficiency Loan Scheme?
The Strategic Banking Corporation of Ireland (SBCI) run this scheme in Ireland. They launched the €150m Energy Efficiency Loan Scheme in July 2022, and are in charge of assessing business' eligibility, too.
The loans are guaranteed by the EU (via COSME and the European Fund for Strategic Investment). This allows both the easier access and reduced interested rates.
Option #1 - High street banks
The loans will be provided to businesses by the high street banks in Ireland. Only Bank of Ireland has opened it's offering for applications (as of time of writing - August 2022). Other banks are expected to follow suit shortly
Read about Bank of Ireland's Energy Efficiency Loan Scheme here
Option #2 - Alternative Lenders
Alternative finance providers are also offering finance through the Energy Efficiency Loan Scheme. You can get quotes and more info via Alternative Business Fianance Brokers, who will handle collecting all the different options and rates for you. There's more information on their Energy Efficiency Loan Scheme page here .
What can the loan be used for?
Loans may only be used for the purposes of upgrading the energy efficiency of the enterprise, though there are restrictions on what assets can be financed.
The list of what is allowed is very large - there are almost 31,000 product types allowed to be financed
Example items the EELS can finance:
- PV Solar installations
- Building energy management systems
- Energy efficient lighting
- Insulation
- Heat pumps
- Refrigeration and cooling systems
- EV infrastructure (e.g. chargers), but not the vehicles themselves
- And much much more.
To be eligible for inclusion, the asset to be financed must be listed on the SEAI Triple E Register for Products.
Items the EELS cannot finance:
Just one of particular note - the purchase of Electric Vehicles (EVs) is not included in the Energy Efficiency Loan Scheme for businesses, (even though EVs are listed on the SEAI Triple E Register).
Is my business eligible?
SMEs who satisfy the following criteria can apply:
- SMEs must be based and operating in the Republic of Ireland
- Have an annual turnover not exceeding €50 million and/or an annual balance sheet total not exceeding €43 million
- Less than 250 employees.
- Have less than 25% of their capital held by public bodies.
What's the application process?
Step 1 - Apply to the SBCI for Eligibility
The first step is to apply to the SBCI (Strategic Banking Corporation of Ireland). They assess your eligibility, and, assuming you pass, will give you your eligibility reference number.
You can find the application forms on their website here:
Your eligibility reference number will remain valid for 6 months.
Step 2 - Apply to the lender
Next you take this eligibility reference number to the lender, i.e. high street bank / alternative lender.
Currently only Bank of Ireland have opened their lending scheme for applications, and you can find more information about Bank of Ireland's Energy Efficiency Loan Scheme here , or AlternativeFinance.ie's Energy Efficiency Loan Scheme page here
Is there a closing date?
Yes. The scheme will close on 31st December 2023, or when the full pot has been used (currently €150m), whichever comes first.
