Financial Assistance for Retrofitting: Grants, Loans, and Funds Available
In the quest to reduce carbon emissions and promote sustainable living, various countries are offering innovative financing solutions for building retrofit projects. Here's a roundup of some key approaches and resources in Ireland, Europe, the USA, Mexico, Guyana, Australia, and the UK.
Specialized Financial Programs and Partnerships (USA focus)
In the United States, private lenders like Sustainable Credit Partners (SCP) offer flexible financing solutions for energy efficiency retrofits in mid-market commercial real estate. Consortium members include Conduit Capital U.S., Climate First Bancorp, and GreenGen, providing capital, technical expertise, and mortgage financing designed to address growing market demands and regulatory pressures for decarbonization.
Community Development Financial Institutions (CDFIs), green banks, credit unions, and public-private partnerships also provide catalytic capital for clean energy and retrofit projects, often supported by state and local governments for credit-worthy projects.
Public Funding Agencies and National Frameworks (Europe/Ireland)
Europe and Ireland boast national public funding bodies like Enterprise Ireland, offering funding under climate and green transition frameworks, such as a €55 million Green Transition Fund aimed at facilitating green projects. Many European countries have agencies and programs supporting financing of climate tech and energy retrofits through grants, loans, or equity investments.
Searchable Tenders and Funding Opportunities (Global)
Platforms like DevelopmentAid enable you to search for tenders and funding calls filtered by sector, eligibility, location, and funding agencies. This includes international development and climate retrofit projects.
Municipal and Local Incentives (Global)
Municipal policies, local building codes, and financial incentives (rebates, tax breaks) are key drivers for retrofits in many cities worldwide. Building owners aware of these policies report that stricter codes and generous incentives accelerate retrofit activity.
Technical Assistance and Project Matching
Organizations like RMI provide inventories of clean energy retrofit projects, connecting project sponsors with technical assistance providers, financiers, and government programs to facilitate transition from grant funding to private financing, an approach applicable globally.
For countries like Mexico, Guyana, Australia, and the UK, consider:
- National or state green or energy efficiency funds and public agencies supporting building retrofits
- Local municipal codes or incentive programs aiming to accelerate energy upgrades
- International development grants or loans focused on climate and energy efficiency (particularly for emerging economies)
By combining searches on development aid tender platforms, exploring local/national public funding agencies’ websites, and engaging with private and public financing partnerships, you can assemble relevant resources tailored to each country’s context and building retrofit financing landscape.
In some countries, such as Ireland, the Credit Union Development Association (CUDA) provides end-to-end funding for retrofit projects through the ProEnergy Home Scheme. Meanwhile, in Australia, Mozo offers a list of green home loans for residents to consider for bringing their properties in line with the NatHERS energy rating system.
The USA offers Energy Efficient Mortgages for Americans to purchase properties certified by Energy Star or to improve existing homes. Property Assessed Clean Energy Programs (PACE) offer loans for upfront upgrades and repairs to private property, repayable through increased property tax.
Community Energy England offers a variety of funds including location-based grant programs, community energy crowdfunding platforms, and post-COVID stimulus packages. Suffolk runs a Greener Homes Loan Scheme for households to replace boilers or install renewables.
In the UK, the Government's Green Deal offers loans and links to local grant possibilities for making energy-saving improvements at home. The Domestic Renewable Heat Incentive (RHI) offers quarterly payments for seven years for the amount of clean, green renewable heat produced by heat pumps in homes and non-domestic buildings. By 2021, almost 45,000 heat pumps had been purchased this way.
The Thrive Renewables Community Benefit Programme offers grants of up to £4,000 to add heat controls, draught-proofing, LED lighting, or insulation to community buildings. The UKGBC's interactive map provides access to localised policies and funding sources for home retrofit projects.
Ireland's Sustainable Energy Authority of Ireland (SEAI) offers grants for insulation, heat pumps, heating controls, solar powered hot water and electricity, community energy projects, and free insulation upgrades for those in receipt of social benefits. Green personal loans from AIB and Green Home Improvement Loans from the Bank of Ireland support home retrofit projects.
In the UK, the first Green Deal folded in 2015 due to its ambitious 25-year loans being seen as an extra tax for the middle classes and daunting for low-income households. Only 14,000 households applied for loans in 2013-15. The Home Heating Cost Reduction Obligation grant funding scheme provides low-income households with opportunities to improve their homes and reduce heating costs.
A report released by the National Audit Office (NAO) claimed the downfall of the Green Homes Grant was due to a rushed design, unrealistic expectations put on tradespeople, vouchers not being made available for applicants, limitations in the renovations applicable, and delays for contractors to receive payment for work already completed. The Green Homes Grant, which offered £5,000 or £10,000 to put in insulation or low-carbon heating, was scrapped in March 2021 after only 6 months.
In Guyana, green loans for businesses are becoming available, with one lender offering up to 50 million USD for large-scale air quality, solar power, and low carbon upgrades. The Mexico Green Mortgage Programme specializes in giving low-income earners a chance to own energy-efficient homes and offers financing for ecological toilets, water-saving sprinklers, and taps.
When the EU's Social Climate Fund launches, it will provide temporary financing for vulnerable households to invest in emission-reducing measures.
- Sustainable Credit Partners in the USA offers flexible financing for energy efficiency retrofits in mid-market commercial real estate, working with partners such as Conduit Capital U.S., Climate First Bancorp, and GreenGen.
- DevelopmentAid is a platform that enables users to search for tenders and funding calls related to international development and climate retrofit projects, filtering by sector, eligibility, location, and funding agencies.
- Municipal policies, local building codes, and financial incentives (rebates, tax breaks) in various cities worldwide are key drivers for retrofit activities, according to building owners reporting faster retrofit action due to stricter codes and generous incentives.
- The EU's Social Climate Fund, when launched, will provide temporary financing for vulnerable households to invest in emission-reducing measures.
