3. Home Energy Conservation

1. 3.1. Tax Credit
2. 3.2. Soft Loans

3.1. Tax Credit

A tax credit* is available for the installation of heating and energy saving materials and equipment, provided it is your principal home. Both homeowners and tenants are eligible.

The main items for which the tax credit is granted are:

• Insulation material and equipment (25%-40%);
• Thermostatic controls and equipment (25%-40%);
• Solar heating equipment (50%);
• Heating pump (50%);
• Condensing boiler (25%-40%);
• Low temperature boiler (15%);
• Wood based heating systems/equipment (50%);
• Rainwater harvesting systems (25%).

Where above the rate is variable, the higher rate is only available for properties constructed prior to 1997, and on condition that the works are carried out by 31st Dec of the second year of acquisition of the property.

The amount of the credit is subject to an upper ceiling on actual costs. The ceiling depends on the number of persons in the household. In the case of a couple the expenditure ceiling is €16,000 (€8,000 each). No means testing is carried out.

Accordingly, you cannot get a credit if you buy the wood burner yourself, and it is installed by the tradesman. The appliance has to be supplied by the installer.

Whilst you are not entitled to a tax credit on the labour cost, you will only get charged VAT at the rate of 5.5% on the cost of labour, in accordance with the rules for all home improvement work carried out by a registered building professional.

The equipment will need to offer a minimum quality and performance standard, which you should discuss with your installer to make sure it complies with the regulations.

You will need to declare the work on your income tax bill, enclosing a copy of the invoice for the work.

For example, if you invest in a new wood burner for your home, you can get a 50% credit on the cost of the burner itself against your income tax bill in the following year, or receive a cheque for half the sum!

3.2. Soft Loans

There are soft loans available through most of the high street banks for works of home energy conservation.

The generic term used for these loans is prêt écologique, although each bank has its own brand name for its own product.

The rate of interest and amount available on these loans varies between the banks, but in the range 3.25% to 3.95%, for an amount normally up to €21,500. The loans are insecured.