Boiler scrappage scheme could offer grants of up to €14,500, minister says

The proposed scheme would supplement existing heat pump supports as the Government seeks to help households move away from fossil fuels

Darragh O’Brien said he is seeking Cabinet approval for new grants, including one for battery storage and the proposed boiler scrappage scheme. Picture: Brian Lawless/PA Wire

People could receive up to €14,500 to replace older oil and kerosene boilers under a proposed new scrappage scheme, the environment minister has said.

Darragh O’Brien said he is seeking Cabinet approval for new grants, including one for battery storage and the proposed boiler scrappage scheme.

“A lot of people in the country, particularly in rural areas, are dependent on kerosene home heating oil, and we've seen the increases in prices particularly in that area,” Mr O’Brien said, speaking in New York.

“I'll be bringing forward, subject to government approval, a boiler scrappage scheme will have grants of up to €14,500 to replace oil boilers, kerosene boilers with new technologies.”

Mr O’Brien said the scheme would come as a “top up” of the existing grants to install a heat pump.

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Currently, people can receive up to €12,500 towards the installation of a heat pump in their home, including up to €6,500 for the heat-pump system itself.

He said the new scheme would apply to boilers installed before a certain year, but did not specify which year.

“It’s obviously end of life, but those details we’ll be going through with Cabinet colleagues next week,” Mr O’Brien said.

“This is not a short-term grant. I want to see us really help people who are on oil boilers and kerosene to be able to get away from those fossil fuels and to assist them in replacing the system that they have.”

Boiler scrappage scheme planned for January

Mr O’Brien said the scrappage scheme is planned to commence in January, adding that there is still some work to be completed.

However, he said the Government would be able to move ahead “pretty quickly” with grants for domestic battery storage.

“This is this is a really good climate measure, but it's a really good cost of living measure too. It makes a permanent difference in relation to fuel reduction and energy reduction and energy efficiency measures in the household, and it saves money,” Mr O’Brien said.

Asked if the Government planned to increase grants for solar panels, Mr O’Brien said that this is not on the agenda.

“We’re looking to bring in new grants to support that,” Mr O’Brien said, referring to proposed battery grants.

“What I want to do is that if you've been already approved for solar and you have solar that you will you will get your battery grant as well, which will allow for domestic storage.

“That makes sense and it will make a real difference.” 

Carbon tax discussions ongoing

Asked about plans to postpone increases in carbon tax, Mr O’Brien said discussions are ongoing within Government on the matter.

He said it is difficult to lower the cost of home heating oil through the tax system, but reducing carbon tax on it would assist in that regard.

Separately, Mr O’Brien said work is ongoing within Government to make it easier for people to switch energy providers, with the issue being examined by the National Energy Affordability Taskforce.

“There’s hundreds of euro that people can save if they know what the best tariff is out there in the market,” he said.

“There are issues with transparency around bills as well, and people understanding the makeup of their bills and the charges within it.”