Irish Examiner view: Financial incentives will encourage greener living

Tax breaks for energy efficiency

Installation costs of solar panels are the main worry for householders.

Many countries in Europe, and even some that aren’t such as Britain, recognise that to radically change consumer and customer behaviour requires a combination of carrot and stick. In the case of converting to solar power in Ireland, clearly a matter of public good, there is plenty of stick in the shape of grim warnings about the impact of global warming, but nowhere near enough carrot in the form of incentives.

According to the experts, in this case the Irish Solar Energy Association — a group that clearly has some skin in the game — householders in the Republic pay 13.5% Vat for the installation of solar panels in their homes.

Yet under EU legislation this can be reduced to 5%, or even eliminated as it has been in the jurisdiction of our next-door neighbours. This could save customers some €700 for the first part of the project, as well as making an ongoing contribution to offsetting domestic energy charges. A significant publicly-driven initiative would also produce spin-off benefits such as training and reskilling a workforce to deliver implementation and further aspects of retrofitting.

While the decarbonisation of the residential sector and the reduction of costs generally are very desirable aims, there is plenty of evidence to suggest that citizens would go much further if they could find the financial wriggle room to do so.

A survey carried out by Coyne Research, on behalf of Allianz Ireland, found that high installation costs are the main worry for 75% of house owners, with many declining to take further action because of tight budgets. In other words, a liquidity crisis is impeding changes that need to be made to help us save the world.

The complexities, and time penalties, of installation is also perceived as an obstacle, which explains why the well-worn remedies of increasing insulation and treble glazing is easily the most popular form of action.

More than half of adults (57%) intend to buy an electric vehicle “in the future”, with 7% of the population already owning one. Four out of five electric vehicles (EV) are valued below €50,000 and this price point carries the most attraction for likely future purchasers.

The reasons for investing in an EV are split evenly between those who believe them to be better for the environment and those who want cheaper running costs.

Ireland has a choice to bump along this slow route to the take-up of technologies which we need to contribute to net zero, or to do a racing change through the gears to accelerate progress. Transport and Environment Minister Eamon Ryan wants to make it easier for people and businesses to switch, including grants for electric charging points in blocks of flats and to make home charging available at rented accommodation. This is all laudable. But it is not going to be enough. A big initiative is required, and a big, and persuasive, hitter must be given responsibility for it.