Green Loans Guide - Save Money on Home Improvements & Green Projects

At Heritage Credit Union, we’ve recently launched our new Green Loan as part of our ongoing commitment to helping members and the wider community embrace a greener future. This initiative is a key part of our ESG plan, reflecting our dedication to sustainability and supporting practical, affordable ways to make positive changes. 

Whether you’re looking to improve your home’s energy efficiency or switch to an electric or hybrid vehicle, our Green Loan makes it easier by removing some of the common barriers associated with funding green projects (such as BER stipulations or SEAI application complications).

We’ve had a bunch of questions from our members since its launch around what exactly a Green Loan is, what the benefits are, what a Green Loan can be used for, how it differs from other loans, what kind of projects are eligible, and more. With that in mind, we’ve decided to put together this guide to give our members (and anyone else who is interested) a rundown on not only the Heritage CU Green Loan product, but green loans more generally.

A Background: Why Green Finance is on the Rise

Green finance is a term that we hear more and more often these days. It is a broad umbrella term that refers to financial products designed to support environmentally friendly projects. At its core, it’s about making funds available to support projects that benefit the environment -  from large-scale green bonds that fund renewable energy projects, to green mortgages for energy-efficient homes, right down to green loans that individuals can use to make sustainable upgrades in their own lives.

The increasing focus on green finance is closely linked to Ireland’s national climate commitments. Consider these factors:

• Climate targets: The Climate Action and Low Carbon Development (Amendment) Act 2021 established a legally binding framework for Ireland to reduce green house emissions by 51% by 2030 and to transition to a climate neutral economy by 2050. 
• The role of energy efficient homes: According to government data, homes account for 25% of Ireland’s energy use and 10% of our overall greenhouse gas emissions. For that reason, energy efficient upgrades have been pinpointed as a key part of the government’s Climate Action Plan.
• The role of energy efficient transport: According to that same government policy document, the transport sector represents about 18% of Ireland’s carbon emissions nationally with road transport and private car usage carrying the most significant carbon footprint. This is the basis of the government's target to increase the number of electric vehicles on Irish roads to almost 1 million by 2030.

So clearly, personal initiatives like energy efficient home improvements and switching to greener vehicles have a significant part to play in reducing Ireland’s collective carbon footprint. However, for individuals who want to play their part, the upfront costs can be significant. Grants and incentives can help with certain home improvement projects, but they rarely cover everything and there can be a lot of red tape and stipulations. And whilst there are also grants available for EVs, again the criteria for which vehicles qualify are quite narrow and households must fund the bulk of the cost themselves. That’s why affordable, accessible finance plays such a key role, giving people the means to take meaningful steps toward a greener, more sustainable future.

It’s no surprise then that more people across Ireland have been turning to green loans as a practical way to make their homes and lifestyles more sustainable. According to the Banking & Payments Federation Ireland (BPFI):

“The value of green personal loans jumped by 18.6% in 2024 to €32 million while the number of green loans rose by 6.3% over the same period to 1,329.”

This steady growth in demand for green loans shows that people want to take meaningful action on climate, and are looking for finance options that help make it possible.

What Exactly is a Green Loan?

So green loans are on the rise… but what exactly qualifies as a green loan? As Niall, our lending manager here at Heritage Credit Union, puts it: 

“A green loan is a type of personal loan designed to support environmentally sustainable projects / investments. These loans are often used for home improvement projects like insulation, heating system upgrades, solar panels, and other improvements that boost a home’s energy efficiency and BER rating. Green loans are also available for projects like electric vehicles or other initiatives that reduce environmental impact.”

Green Loan Principles

Whilst there is no legally binding definition or eligibility criteria around the term “Green Loan”, the Green Loan Principles (GLP) issued by the Loan Market Association have become a leading framework internationally on the characteristics of a green loan. According to the GLP, a green loan is defined as a loan that is exclusively used to finance or refinance eligible green projects. To make sure these loans genuinely deliver environmental benefits, the GLP set out four core components:

• Use of proceeds: The money borrowed must be directed toward clearly defined green projects, such as energy-efficient home retrofits, renewable energy systems, or low-emission transport.
• Project evaluation and selection: Lenders are encouraged to put a clear process in place to check that the projects being financed meet recognised environmental objectives.
• Management of proceeds: The loan funds should be tracked and managed in a transparent way, ensuring they are allocated properly to the intended green projects.
• Reporting: Borrowers and lenders are encouraged to provide updates on how the funds are being used and, where possible, share information on the environmental impact of the project.

Green Loan vs. Personal Loan

The biggest difference between a Green Loan and a regular Personal Loan is the purpose: a Green Loan is tied to projects with clear environmental benefits. Because of this, lenders like Heritage Credit Union typically offer favourable rates compared to general personal loans, as an incentive to encourage sustainable choices. If you're borrowing money for a purpose or project that is going to lead to a reduction in carbon footprint and/or a contribution to Ireland’s broader climate goals, a Green Loan is probably the best option for you.

So… What Can You Use a Green Loan for?

Some green loans from other providers may have a narrower focus (e.g. available for home improvements only) and rigid qualifying criteria (e.g. focused on BER rating & use of specific vendors) and the specific criteria can change from provider to provider, so we can only really speak for our own Green Loan. The idea of our new Green Loan is to allow our members access to funding for green projects without jumping through hoops. 

Home energy retrofits

Many members start with home energy retrofits such as attic insulation, wall insulation, or roof upgrades. As Anthony Biggane of Powell Insulations explains:

“For many Dublin homeowners, making the leap to insulate their homes feels out of reach, but Green Loans change that. With the support of SEAI grants and affordable financing, upgrades like attic insulation become a no-brainer. You feel the difference in warmth straight away, and the savings on your heating bills really add up.”

Upgrades to windows and doors are another common step, helping to improve both comfort and energy efficiency, while other works aimed at boosting your home’s BER rating also qualify.

Solar projects

More and more members are also looking at solar projects, from solar panels that generate electricity, to solar water heating systems that reduce hot water costs.

Efficient heating systems

On the heating side, investments in efficient systems such as heat pumps, high-efficiency boilers, and smart heating controls make homes easier (and cheaper) to run.

Energy Efficient Vehicles

Finally, the Green Loan is not just for homes. It can also be used to fund energy-efficient transport. Whether that means buying a new or second-hand electric vehicle, switching to a plug-in hybrid, or installing a home EV charger, the loan gives you the flexibility to go green in a way that suits your lifestyle. Some members even use it to finance an e-bike as a clean, cost-effective option for shorter journeys.

If you have another project in mind that you feel may qualify for a Green Loan, feel free to get in touch or pop into any of our 12 local branches to discuss it in person!

Benefits of Green Loans

As we’ve established, green loans are designed to make sustainable choices easier, more affordable, and more rewarding. Some of the key benefits of green loans include:

Financial Benefits

For the consumer, green loans make financial sense for a number of reasons including:

• Competitive rates: Typically Green Loans are offered at a favourable rate compared to standard personal loans, helping you borrow affordably. 
• Real savings: According to SEAI, you can save up to €600 per year on heating bills with well insulated walls and attic space. While switching to an electric car can reduce fuel costs by 50–60% and lower annual motor tax to just €120.
• Increased home value: A higher BER rating can increase property value, turning your retrofit into a long-term investment. According to some sources, energy-efficient homes achieve a premium of €90,000 compared to less efficient homes.

And if you choose Heritage Credit Union’s Green Loan specifically you also enjoy the benefit of flexible terms and uses. Whether you’re borrowing for attic insulation, solar panels, or an EV, our Green Loan adapts to your project and your budget.

Environmental Benefits

As we’ve touched upon already, the benefits are not just financial. Green loans also have a whole host of environmental benefits:

• Lower emissions: Home upgrades reduce energy waste - In the first quarter of 2025 alone, residential upgrades delivered approximately 29.47 gigawatt-hours of energy savings and avoided around 15,000 tonnes of CO₂ emissions across Ireland. The SEAI also reports that EVs produce less than half the CO₂ emissions of even the cleanest petrol cars in Ireland.
• Support for Ireland’s climate goals: Every member who upgrades their home or switches to a greener vehicle contributes to our national target of cutting emissions by 51% by 2030.
• Community impact: Every small change contributes to the wider effort to reduce reliance on fossil fuels, helping us all work toward a cleaner, more sustainable future.

Personal Benefits

At the end of the day, you want the financial investment that you’re making to result in a personal benefit to you and your family. Some of the personal benefits associated with Green Loans include:

• Comfort and wellbeing: Energy-efficient upgrades create warmer, cosier homes with fewer drafts and better air quality.
• Peace of mind: Knowing you’re cutting bills while reducing your environmental footprint brings a real sense of pride.

And when it comes to the Green Loans from Heritage Credit Union in particular, there’s an extra personal benefit. Unlike many schemes, there’s no need for a BER certificate or SEAI grant approval. Our Green Loan is open to all members, with a simple application process and support from our friendly loan officers.

Funding Home Improvements: Green Loans vs Grants

If you’re considering home energy upgrades, you’ll quickly realise there are several ways to fund the work. Grants and government-backed loans can be helpful, but they don’t always cover everything. Here’s a breakdown of what’s available, and how Heritage Credit Union’s Green Loan can support you in different scenarios.

SEAI Grants

The Sustainable Energy Authority of Ireland (SEAI) offers several grant options that can help with the cost. These fall into three main routes, each suited to different situations:

Individual Energy Upgrade Grants

These are the most flexible, allowing you to pick and choose specific upgrades like attic insulation, wall insulation, heat pumps, or solar panels. You manage the process yourself - applying for the grant, arranging contractors, and then claiming back the grant once the work is done. It’s a good route if you just want to tackle one or two jobs at a time, but it does require a bit of organisation on your side. These grants are a huge financial help to those who are eligible but typically only cover a portion of the overall cost of the specific project - you can learn more about individual energy upgrade grants here.

One Stop Shop (OSS) – National Home Energy Upgrade Scheme

The second route is the One Stop Shop service, which is aimed at people looking to do a deep retrofit. Here, an approved provider manages the entire project for you, from the grant paperwork to organising contractors. The idea is that you hand over the hassle, and in return your home is upgraded to at least a BER B2 rating. It’s a comprehensive solution, but it does mean committing to a bigger investment and meeting stricter eligibility requirements. Read more about the National Home Energy Upgrade Scheme here.

"Warmer Homes" Scheme

Finally, there’s the Warmer Homes Scheme, which is fully funded by SEAI and designed to help homeowners on lower incomes. If you qualify, SEAI covers the entire cost of upgrades like insulation, draught proofing, and energy-efficient lighting. This scheme is a real lifeline for those who meet the criteria, but it isn’t open to everyone.

SEAI grants can be a big help, but they come with different levels of paperwork, eligibility requirements (often depends on your home’s age, condition, and sometimes achieving a target BER rating) and limits on what’s covered. That’s where a Heritage CU Green Loan can make the difference - whether you need to top up a grant, avoid the complexity of the One Stop Shop process, or simply fund improvements that fall outside of what SEAI covers.

The Home Energy Upgrade Loan Scheme (HEULS)

The government has also introduced the Home Energy Upgrade Loan Scheme (HEULS) to help households take on bigger retrofit projects. It’s essentially a low-interest loan, backed by the state, and it’s designed to work hand-in-hand with the SEAI grant system.

If you qualify for an SEAI grant and plan upgrades that will significantly boost your home’s BER rating, HEULS offers loans of between €5,000 and €75,000 over terms of up to ten years, with competitive interest rates. For some households, especially those planning a whole-home retrofit, it can be a very cost-effective way to finance the portion of work not fully covered by grants.

That said, there are a few important conditions. To be eligible, you must first qualify for an SEAI grant, and the upgrades need to improve your home’s energy rating by at least 20%. In practice, that means going through a One Stop Shop provider, with technical assessments and paperwork to prove the uplift.

So, while HEULS is a solid option for deep retrofits, it won’t suit everyone. The Heritage CU Green Loan is a great alternative for those who don’t meet HEULS criteria, don’t want the extra red tape, or simply need a more flexible loan to cover upgrades on your own terms.

Home Improvement Funding Options Compared

Green Loans vs Green Mortgages

It’s easy to confuse green loans with green mortgages, but they serve very different purposes. 

A green mortgage is tied to buying or switching your home loan. Lenders offer a lower interest rate if you’re purchasing, building, or already living in a home with a high energy efficiency rating. The idea is to reward households that live in greener homes.

A green loan, on the other hand, isn’t about the house you buy -  it’s about the improvements you make. It’s a flexible personal loan that can be used for things like insulation, solar panels, heat pumps, or even switching to an electric vehicle.

In a nutshell: a green mortgage helps you if you’re buying or financing a highly efficient home, while a green loan helps you if you want to upgrade the home you already live in (or the car you drive) to make it greener.

H2 - Green Loans vs Grants for Electric Vehicles 

As we mentioned earlier, Ireland has set an ambitious goal of almost 1 million electric vehicles by 2030. And while the shift to electric driving is gathering pace, one of the biggest challenges for households remains the upfront cost of buying an EV.

Again, there is an SEAI EV grant available, but it only applies to new battery electric vehicles (BEVs) with a list price under €60,000. Grants can be worth up to €3,500, which certainly helps, but it still leaves most buyers needing to finance the bulk of the cost themselves. Importantly, the grant does not apply to second-hand EVs or hybrid vehicles, both of which are popular, more affordable options for many families.

That’s where a green loan comes in. It can be used to:

• Top up after the grant - covering the balance once the SEAI grant has been applied to a new EV purchase.
• Finance a second-hand EV or hybrid - options not covered by the grant but often more affordable and practical for members.
• Fund related costs - such as installing a home EV charger, or even purchasing an e-bike if you’re looking for a smaller, greener transport option.

So while grants are a great support for some, they don’t fit every situation. A Green Loan for electric cars gives members the flexibility to go green in the way that suits them best - whether that’s driving away in a new EV, picking up a reliable second-hand model, or simply making charging at home easier and more convenient.

Practical Guide – Applying for a Green Loan

We’ve designed the Heritage CU Green Loan to be simple, accessible, and member-friendly. Here’s what you need to know if you’re thinking about applying.

The Green Loan is open to all Heritage Credit Union members. You don’t need a BER certificate, SEAI grant approval, or special qualifications to qualify - if you’re a member with a green project in mind, you can apply. 

Depending on the size of the loan, we may ask for some supporting documents (like a quote or invoice for works), but in many cases smaller loans can be processed with minimal paperwork.

The Application Process

One of the things that sets our Green Loan apart is how straightforward the process is compared to banks or government schemes. Here’s how it works:

1. Get in touch: Call in, apply online, or talk to your local branch loan officer about your project.
2. Provide details: For smaller loans under €10,000, no quotation is required. For larger loans, we may ask for a breakdown or quotation just to confirm the project is green-related.
3. Quick decision: Our lending team assesses applications promptly, and decisions are made locally - often much faster than you’d expect from a bank.
4. Funds released: Once approved, the funds are transferred and you can get started on your project right away.

We also pride ourselves on being approachable. Our loan officers are here to answer questions and guide you through the process step by step.

Competitive Rates with a Tiered Structure

To make green projects as affordable as possible, our Green Loan comes with competitive rates that reward larger projects:

• Loans up to €10,000 – 9.75% (APR variable)
• Loans between €10,000 – €20,000 – 7.5% (APR variable)
• Loans above €20,000 – 5.95% (APR variable)

This tiered approach means that the bigger the green upgrade you take on, the lower the rate you pay. It’s our way of encouraging members to make meaningful changes, while keeping repayments manageable.

Planning Your Repayments

Before you apply, it’s a good idea to plan how the repayments will fit into your budget. Our green loan calculator lets you quickly see what your monthly repayments might look like for different loan amounts and terms. This tool is a handy way to make sure your loan is affordable and tailored to your needs.

Real-World Green Loan Examples & Case Studies

TBD

Why Choose a Credit Union Green Loan?

When it comes to financing sustainable projects, you have options. Choosing a Credit Union Green Loan means choosing a solution that is built around you and your community.

• Member-first focus: Unlike banks, we do not answer to shareholders. Every decision we make is guided by what is best for our members and the communities we serve.
• Flexibility: Repayments are tailored to your budget and circumstances, so you can move forward with confidence.
• Trust: With transparent rates and no hidden charges, you will always know exactly where you stand.
• Local support: We are not a faceless call centre. Our loan officers are part of your community, ready to offer advice and support in person, online, or over the phone.

That is why so many members across Ireland are turning to Green Loans from their local Credit Union. They combine the financial benefits of going green with the reassurance of dealing with people you know and trust.

Ready to Go Green?

At Heritage Credit Union, we have made it as simple as possible for you to get started:

• Use our loan calculator to see what your repayments could look like.
• Apply online in minutes.
• Or, if you prefer, talk to your local branch and we will guide you through the process.

Ready to make your home greener? Apply for a Heritage Credit Union Green Loan today.