Budget 2027: Government considering changes to renewable energy grants

New measures aimed at encouraging greater uptake of renewable energy technologies are being examined by Government

Minister Jack Chambers said the changes would 'better calibrate our grant support system to promote renewable energy options' and move people away from fossil fuels. File picture

The Government is considering changes to renewable energy grants to make it easier for people to make the move away from fossil fuels, the Dáil has heard.

Public expenditure minister Jack Chambers said environment minister Darragh O’Brien is drawing up proposals to improve grant supports.

Mr Chambers said these changes would “better calibrate our grant support system to promote renewable energy options” and move people away from fossil fuels.

He said changes would be announced as part of Budget 2027, which will be revealed on October 6.

The public expenditure minister was responding to questions from Social Democrats TD Cian O’Callaghan, who raised concerns about rising electricity costs.

Mr O’Callaghan cited new data from the Central Statistics Office (CSO) which found that wholesale electricity prices had risen by 76.9% year-on-year as of August.

“We all know that we are particularly vulnerable to these price shocks because we are so dependent on fossil fuels. Trump is to blame for a lot of things, but he is not to blame for that. We are hooked on fossil fuels,” Mr O’Callaghan said.

“That is a direct result of this Government's incompetence and negligence, and it has left hundreds of thousands of households hopelessly exposed.”

Mr O’Callaghan called on the Government to introduce a targeted €400 energy credit, saying it would assist low- and middle-income families who “desperately need it”.

In response, Mr Chambers said the Government was aware of the serious pressures faced by families heading into the winter.

“That's taking centre stage of all our estimates discussions, and also how we're examining different and further interventions when it comes to how we tax energy in the economy,” Mr Chambers said.

He said there would be an income tax package as well as measures within the social protection budget to “help those most in need”.

Mr Chambers said this would come in the form of changes to fuel allowance.

“We're also considering further options for home heating oil. We know many households, in particular in rural Ireland, are impacted by that price rise, which is likely to continue and sustain over the winter period,” he added.

'Sensible and prudent' to delay hiking excise duty on fuel

The Tánaiste has given the clearest indication yet that planned fuel excise increases due to take effect in November are likely to be postponed.

Simon Harris told a meeting of Fine Gael TDs and senators on Tuesday that delaying the increases would be "sensible and prudent", amid concerns over high fuel prices and warnings from hauliers that protests could return.

Excise reductions worth 32c a litre on diesel and 27c a litre on petrol had been due to begin unwinding in November. 

However, Mr Harris indicated the timetable may have to be reconsidered as instability in the Middle East continues to put pressure on energy prices.

The comments came after Irish Road Haulage Association president Ger Hyland warned that "desperate times make desperate people" when asked about the prospect of renewed fuel protests.

Speaking in New York, Taoiseach Micheál Martin said the Government would do "everything [it] possibly can to ease the burdens on people".

"I have no issue with legitimate protests. That's important," he said.

“People and citizens must be allowed to go about their normal duties [and] businesses, going to hospital appointments, going to work, and so on like that.”