Dáil Éireann Debate, Tuesday - 5 November 2024
133. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the average cost to install a heat pump, broken down by post-BER rating and by SEAI scheme, in 2020, 2021, 2022, 2023, 2024, in tabular form; and if he will make a statement on the matter. [44730/24]
Amharc ar fhreagra134. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he will report on the heat pump targets as outlined in the long-term renovation strategy (details supplied); the progress made in meeting these targets; the percentage of these targets reached in 2021, 2022, 2023 and 2024; and if he will make a statement on the matter. [44732/24]
Amharc ar fhreagraI propose to take Questions Nos. 133 and 134 together.
Ireland’s Long-Term Renovation Strategy, submitted to the European Commission in 2020, sets a target to install 400,000 heat pumps in existing homes by end-2030. The Climate Action Plan and National Retrofit Plan published in 2021, subsequently set targets to install 45,000 heat pumps existing dwellings by 2025, and 400,000 by 2030
Heat pumps are one of the most challenging technologies to implement at scale in the existing residential sector, though new builds are predominantly using them. Data from SEAI shows that in the period 2019 to end-September 2024, almost 171,000 property upgrades have been supported. Of these, over 13,000 have installed a heat pump, mostly under the SEAI part-funded, demand-led schemes. In addition, data from the Department of Housing, Local Government and Heritage shows that an additional 4,863 heat pumps were installed under its Local Authority Energy Efficiency Retrofit Programme in the period 2021-2023. The 18,000 heat pump installations represent 40% of the 2025 target and 4.5% of the 2030 target. It is important to note that the number of heat pump installations was impacted significantly by construction sector closures and restrictions on home visits associated with COVID-19.
SEAI advise that under the residential and community retrofit schemes almost all homes retrofitted that include a heat pump achieved a post works Building Energy rating of B2 or better.
There has been significant year-on-year growth in the number of heat pumps installed in recent years. Last year’s total of almost 6,000 heat pumps represents a 44% increase on 2022 and a 430% increase on the number installed in 2019. This growth has resulted from a range of measures set out in the National Retrofit Plan including:
• New and redesigned SEAI schemes with enhanced grant rates of up to €10,500 available for heat pumps when a B2 energy rating is achieved;
• Changes to SEAI scheme rules to make the process of accessing heat pump grants easier for homeowners;
• Measures to expand the supply chain;
• An €8 billion budget allocation to support retrofit and heat pump installations to 2030; and
• A focus on installing heat pumps within the Local Authority Retrofit Programme.
It is clear from the 2025 heat pumps target and the annual financial allocations set out in the National Retrofit Plan that the first half of the decade is focused on growing both demand for heat pumps and the necessary supply chain with a further significant acceleration from 2026. Increasing the uptake of heat pumps among homeowners is a top priority of my Department and as such, further policies and measures will be introduced on an annual basis in order to support the achievement of these targets. The Deputy may wish to note that Budget 2025 committed to a reduction in the VAT rate for the installation of heat pumps reduced to 9% - the lowest rate allowable under the VAT Directive.
The specific data sought by the Deputy on the average cost to install a heat pump broken down by scheme for the period 2020 - 2024, is not routinely reported to the Department by SEAI. Therefore, I have asked SEAI to reply directly to the Deputy with the information in so far as it is available as soon as possible.
