- The Energy Efficiency Loan Scheme
- Features and benefits
- Who can apply
- How to apply
- Frequently Asked Questions (FAQs)
The Energy Efficiency Loan Scheme
The Energy Efficiency Loan Scheme (EELS) is offered by the Strategic Banking Corporation of Ireland (SBCI)* in partnership with the European Investment Fund (EIF).
It will run until the 31st December 2023 or until it is fully subscribed.
Loan1 Purpose
The SBCI Energy Efficiency Loan Scheme (the “Scheme”) is designed to support eligible SMEs (Small Medium Enterprises) to invest in the energy efficiency of it’s enterprise by acquiring energy efficient assets to reduce carbon emissions. The Scheme provides funding support to enable eligible Irish businesses to fund investment in their enterprise and allows for the provision of a credit facility where you borrow a certain amount at a fixed interest rate which is repayable over a certain term.
Assets listed on the SEAI Triple E Product Register are deemed eligible assets for the purpose of the Scheme (excluding Electric Vehicles (“EV’s”));
- The SEAI Triple E Product Register is a list of energy efficiency products that all meet a minimum set of stringent energy efficiency criteria and typically will be of a best-in-class efficiency standard.
- The register is maintained by SEAI and is utilised by the Revenue Commissioners in determining which assets can avail of tax relief by way of accelerated capital allowances.
- The register includes a broad range of assets across a wide spectrum of areas including Heating and Electricity Provision, Lighting and Refrigeration and Cooling.
- A supplier may apply to SEAI to have their equipment included on the register subject to demonstrating that it meets the technical requirements to be considered energy efficient for that equipment type.
- While included on the SEAI Triple E Product Register, EV’s are not eligible assets to be funded under the Scheme. Please note that EV charging points will be eligible under the scheme.
- Where appropriate, finance proceeds of no more than 20% of the finance amount may be used towards ancillary costs related to the investment in the asset(s), for example installation costs.
*SBCI stands for Strategic Banking Corporation of Ireland. For more information on SBCI visit http://sbci.gov.ie/ 2
Features & Benefits
- Finance amounts are from €10,000 to a maximum of €150,000 per borrower.
- Finance terms from 1 year up to 10 years maximum (terms greater than 5 years are subject to additional credit assessment)1.
- Finance is provided by Business Hire Purchase only.
- All facilities will be applied for through BIF’s call back form.
- Pre qualification is required with the SBCI to confirm that you are eligible for the scheme before applying for finance with BIF.
- Interest rate is fixed for the duration of the agreement at 4.79%2IRR.
- Facilities can be used for the purchase of assets (excluding Electric Vehicles {“EVs”}) that are on the SEAI The Triple E Products register. This register is a list of energy efficiency products that all meet a minimum set of stringent energy efficiency criteria and will typically be of a best in class efficiency standard.
Finance Amount: €50,000 at a rate of 4.79% over a 5 year term will require 60 monthly repayments of €938.76 Total Cost of Credit is €6,452.58. Fixed APR 4.99%* (Annual Percentage Rate) as at 1st June 2022. APR is inclusive of a documentation fee and purchase fee of €63.49 each. *Lending criteria and terms and conditions apply. Applicants must be aged 18 years or over. The information is for illustrative purposes only and does not constitute an offer. This is a Business Hire Purchase Agreement provided by Bank of Ireland trading as Bank of Ireland Finance. Ownership remains with Bank of Ireland until the final payment is made.
Who can apply?
The scheme is available to eligible SMEs1 and primary producers2 operating in the Republic of Ireland3. Non- Bank of Ireland customer can also apply.
Who cannot apply for finance?
SMEs or primary producers who:
- Do not satisfy the Scheme eligibility criteria
- Are in financial difficulty
- In the last 5 years have entered into an arrangement with creditors, are bankrupt, being wound up or having its affairs administered by the courts
- Are subject to or fulfil the criteria under domestic law for being placed in collective insolvency proceedings
- Have been convicted of an offence concerning professional misconduct by judgement, fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity where such illegal activity is detrimental to the European Union’s financial interests
Does my Business qualify?
If your business is an SME or a primary producer operating in the Republic of Ireland, you may be eligible to apply for the scheme. Your business must satisfy certain conditions by completing an application form and self-declaring a category and asset from the SEAI Triple E Register they are purchasing:
- Building Energy Management Systems
- Lighting
- Motors and Drives
- Information and Communications Technology (ICT)
- Heating and Electricity Provision
- Process and Heating, Ventilation and Air-conditioning (HVAC) Control Systems
- Catering and Hospitality
- Electromechanical Systems
- Refrigeration and Cooling
The SBCI will check the application form and send a confirmation of eligibility/ineligibility for the scheme. This confirmation is used as part of our credit application process.
Before you apply, make sure that your business qualifies for the scheme by checking out the SBCI website https://sbci.gov.ie4
How to apply
Step 1 – You must first submit an Eligibility Application Form to the SBCI to check if your business is eligible for the Scheme. If the SBCI determines that your business is eligible, you will be notified in writing and will be supplied with an eligibility reference number (eligibility code).
Step 2 – Please complete the following form here with a few of your details including your eligibility confirmation code to Bank of Ireland Finance (BIF) and one of the team will be in contact with you.
Please note that the SBCI eligibility letter/code is not a guarantee of loan approval and does not impose any obligation on the lender to provide a loan.
Approval of loans is subject to the scheme lenders’ own credit criteria, policies and procedures.
Eligibility Confirmation
The SBCI will confirm if your application to the SBCI Energy Efficiency Loan1 Scheme has been successful and will issue an Eligibility Confirmation letter once approved. Should you have any queries about the scheme eligibility, call the SBCI helpdesk on 1800 804 482.
State Aid
Finance amounts and term are dependent upon State Aid thresholds – SMEs are subject to De Minimis State Aid thresholds, provided such aid does not exceed €200,000 in any 3-year fiscal period. Borrowing under this scheme will give rise to State Aid benefit, and hence there may be a restriction on the amount of scheme funding/finance term that can be availed of by the borrower. It is important to note that the State Aid is not the amount of the finance.
What is State Aid?
Funding for the Energy Efficiency Loan1 Scheme is provided under the EU Commission Temporary State Aid framework. See here2 for further details.
If you have received state aid in the past, you will have received a letter from the public agency that provided it. These include Enterprise Ireland, Bord Bia or your Local Enterprise Office.
Representative Finance Example:
Finance Amount: €50,000 at a rate of 4.79% over a 5 year term will require 60 monthly repayments of €938.76 Total Cost of Credit is €6,452.58. Fixed APR 4.99%* (Annual Percentage Rate) as at 1st June 2022. APR is inclusive of a documentation fee and purchase fee of €63.49 each. *Lending criteria and terms and conditions apply. Applicants must be aged 18 years or over. The information is for illustrative purposes only and does not constitute an offer. This is a Business Hire Purchase Agreement provided by Bank of Ireland trading as Bank of Ireland Finance. Ownership remains with Bank of Ireland until the final payment is made.
FAQs
