Retrofit plan: Government targets 500k homes for upgrade

The new National Home Energy Upgrade Scheme provides a grant of 50% of the cost of a typical deep retrofit to a B2 energy rating. Picture: Denis Minihane

The Government has described its new retrofitting scheme as a "game-changer" for householders trying to reduce energy costs but the opposition has insisted the plan will not deliver for those on low incomes.

The new National Home Energy Upgrade Scheme provides a grant of 50% of the cost of a typical deep retrofit to a B2 energy rating — up from 30%-35%. 

It would require homeowners to pay half (€25,000) of the cost of a deep retrofit, with the Government providing the other €25,000.

Enhanced grant rate

A special enhanced grant rate, equivalent to 80% of the typical cost for attic and cavity wall insulation for all households, has also been announced.

A low-interest (around 3.5%) loan programme for the scheme will not be launched by the Government until September this year. 

However, Minister for Climate Eamon Ryan said the "advantage" of taking out a loan now is that other market players have "good offers".

"I'd say, don't wait, I say proceed with whatever different system you have or whatever way you might want to have to borrow for it... so you shouldn't delay," he said.

"I think a large number of householders would be influenced by the grant, not necessarily the loan option because a lot of households have saved money over the Covid period, something like €50m in unspent savings."

Sinn Féin's climate action spokesperson Darren O'Rourke said the scheme will not benefit those on low incomes.

“Under this plan, people who have €25,000 on hand, for example, will be able to get up to €25,000 in grants, funded by ever-increasing carbon taxes," he said.

"Meanwhile, for working families who are struggling to get by, the Government's answer is to take on more debt."

Social Democrat climate spokesperson Jennifer Whitmore said there are three major barriers to the Government’s plan.

"First, the large upfront cost to householders that a deep retrofit will still entail; the lack of qualified construction workers to do the work; and the lack of clarity surrounding the Government’s proposed low-cost loan scheme, the details of which will not be announced until the autumn," she said.

€8bn investment

An exchequer investment of €8bn has been made to hit the target of retrofitting 500,000 homes by 2030 and a special enhanced grant rate. To reach this target, around 62,500 homes need to be retrofitted every year for the next eight years. Last year, 15,457 homes were retrofitted under all schemes run by the Sustainable Energy Authority of Ireland.

A significant increase in the number of free energy upgrades for those at risk of energy poverty has also been announced, moving from an average of €177 per month in 2021 to €400 per month this year, helping to reduce waiting times.

"I think this scheme, given its breadth, will cover all... and create capacity to start the journey on retrofitting, particularly that 80% grant scheme in the attic insulation, within the cavity walls," said Taoiseach Micheál Martin.