Free solar panels and higher grants under new Government plan to reduce energy costs

The 'Irish Examiner' understands that the total costs of these measures could be in the region of €200m in a full calendar year.

Other proposed measures include higher grants for solar panels for people in receipt of certain social welfare payments, along with grants for landlords providing HAP payments and rental accommodation scheme.

Social welfare recipients could save up to €900 in energy costs a year as the Government examines the “immediate rollout” of solar panels under the warmer home scheme and higher retrofitting grants.

Ministers will soon examine a menu of options to support households and businesses with energy costs through enhanced retrofitting programmes.

Other proposed measures include higher grants for solar panels for people in receipt of certain social welfare payments, along with grants for landlords providing HAP payments and rental accommodation scheme.

It comes as the Government continues to face pressure over the cost-of-living crisis as energy companies increase their prices for hard-pressed consumers.

More than 1m Irish homes saw their energy bills rise last week as Electric Ireland increased its unit rate of energy and gas by 9.5%.

Pinergy has also announced that it would raise its night rate of electricity by 82%, with Flogas customers facing a 10.9% rise in electricity and an 11.8% increase in gas prices from July 20.

The Irish Examiner understands that a menu of options for enhanced retrofitting measures for both homes and businesses will be brought to Cabinet by energy minister Darragh O’Brien in the coming weeks. The scheme would be administered by the Sustainable Energy Authority of Ireland (SEAI).

This includes proposals to provide solar panels as standard under the warmer home scheme. This is a scheme run by the SEAI, which provides free energy upgrades to homeowners in receipt of certain social welfare payments.

This includes the fuel allowance, the working family payment, jobseeker’s allowance, disability allowance, domiciliary care allowance, one parent family payment, and carer’s allowance.

Another proposed measure would see grants of up to €9,000 for solar panels and battery energy storage systems for households in receipt of certain social welfare payments.

It is estimated that these measures could result in savings of up to €878 per year for households which are deemed suitable for the solar panels.

It is also proposed that a new pilot scheme could be introduced for landlords providing HAP and rental accommodation scheme tenancies. A HAP tenancy involves a local authority paying rent directly to the landlord, with the tenant paying a contribution to the council. The rental accommodation scheme operate in the same way, but the council helps the tenant secure the tenancy.

Attic and cavity wall insulations

The plans that will be discussed by Cabinet are also understood to contain proposals to provide grants to HAP and rental accommodation scheme landlords to fund attic insulation and cavity wall insulation.

The Irish Examiner understands that another proposal would see grants introduced for battery energy storage systems, which would allow homes to store cheaper off-peak electricity.

It is also expected that the proposals could include enhanced grants for businesses, including temporary increases in grants for solar panels, as well as increased grants for heat pumps and solar thermal insulation.

It is further understood that the total costs of these measures could be in the region of €200m in a full calendar year.

While the plans are not expected to be discussed by the Cabinet for several weeks, it is expected that they could face pushback from the Department of Public Expenditure and Reform.

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One senior government source said that the department "must tease out every new spending measure, especially one that could cost €200m”.

The coalition will be under pressure to introduce energy supports in Budget 2027 on October 6.

On RTÉ, Cian O’Callaghan, the Social Democrats’ deputy leader, said a targeted energy credit is needed to “help households that are really struggling with energy bills, really struggling with fuel poverty”.

“The second thing that the Government has to do is it needs to get out of just firefighting and get out of just emergency supports and do some more long-term measures,” he said.

“Invest in grants that people on lower incomes can access for things like solar panels.”

Junior minister Neale Richmond said the Government had been criticised for too many people receiving energy credits.

• Louise Burne is the Political Correspondent with the Irish Examiner.