The Climate Action Plan sets ambitious targets to retrofit the equivalent of 500,000 homes to a Building Energy Rating of B2/cost optimal level and install 400,000 heat pumps in existing homes by the end 2030. A range of measures have been introduced under the National Retrofit Plan in recent years to support the achievement of our targets. These include:
• enhanced Sustainable Energy Authority of Ireland (SEAI) grant schemes with simplified application processes and faster approvals, including a greater focus on heat pumps;
• the establishment of a network of twenty four SEAI registered One Stop Shops with further growth in the network expected this year;
• enhanced supports for retrofitting apartment buildings and flat complexes;
• piloting of new supports for area-based retrofit projects and traditional buildings;
• the Home Energy Upgrade Loan Scheme providing retrofit loans with interest rates as low as 3%;
• a reduction in the VAT rate for heat pumps to 9% and a 0% rate for solar panels;
• a tax incentive to encourage small-scale landlords to undertake retrofitting works while the tenant remains in situ; and
• a range of measures to increase the number of workers with retrofit skills, including the establishment of six Retrofit Centres of Excellence.
These various measures have been designed to work effectively with each other. For instance, the retrofit loan works in conjunction with the SEAI grants and VAT reductions to make retrofitting homes more affordable.
The measures introduced are translating into delivery. In the period 2019 to date, the SEAI schemes have provided €1.3 billion in support to homeowners for 203,700 home energy upgrades, including almost 65,000 B2s, and 27,800 fully-funded upgrades for households at risk of energy poverty under the Warmer Homes Scheme.
This year, a record €550 million allocation to the SEAI will support over 64,500 home energy upgrades and build on the momentum seen in recent years.
My Department together with the SEAI engage in a continuous process of monitoring and review, which includes progressing projects piloting new supports such as the Traditional Homes Pilot and the Warmer Homes Heat Pump Pilot. This ensures that the SEAI residential and community grant supports evolve in a way that responds to homeowner demand while taking account of research, innovation, evolving technology and other relevant factors.
