The Strategic Banking Corporation of Ireland (SBCI) has launched its €150m Energy Efficiency Loan Scheme to help SMEs and farmers cut their energy bills and reduce their carbon emissions by investing in energy-saving measures.
The scheme will offer discounted term loans, asset finance and hire purchase to SMEs and farmers planning investments in a range of energy-saving equipment including solar panels, heat pumps, LED lighting and other energy-saving technology.
The SBCI said that SMEs will benefit from reduced interest rates, with rates from 4.0% to be made available and finance amounts ranging from €10,000 to €150,000 over terms of up to 10 years.
The new scheme is available through Bank of Ireland immediately, with multiple other on-lenders due to follow in the coming weeks.
SBCI CEO June Butler (pictured above) said the scheme is attractive for SMEs that are looking to reduce their energy costs and their carbon emissions.
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“We are conscious that many businesses continue to grapple with the immediate challenges caused by Covid, Brexit and economic uncertainty arising from the terrible events in Ukraine,” she said.
“But we know that SMEs which have the capacity to invest in energy efficiency need better financing options, and this scheme is designed for them.”
Butler added that the scheme underlines SBCI’s commitment to bringing more and more SME-friendly lending products to market, helping SMEs reduce their costs, manage their cashflow, support jobs and ultimately make their business stronger.”
"We are delighted to launch a scheme that will make SMEs more sustainable with lower carbon emissions and we encourage as many SMEs as possible to make the most of the discounted loan rates it offers,” said Butler.
To be eligible for finance, the energy efficiency equipment must be listed on the Sustainable Energy Authority of Ireland (SEAI) Triple E Register for Products, a list of energy efficiency products that all meet a minimum set of energy efficiency criteria.
The scheme, which benefits from a guarantee provided by EU bodies, will operate until the end of December 2023.
Finance minister Paschal Donohoe TD commented: “Businesses using the Energy Efficiency Loan Scheme can enhance their competitiveness, address their energy costs and boost their reputation in meeting customers’ sustainability expectations. I urge businesses to exploit the new investment opportunities this creates.”
