Dáil Éireann Debate, Wednesday - 28 January 2026
7. Deputy John Clendennen asked the Minister for Climate, Energy and the Environment whether research has been undertaken to assess the anticipated costs to the consumer that will result from the renewable heat obligation; the details of these costs; and if he will make a statement on the matter. [6739/26]
Amharc ar fhreagra8. Deputy John Clendennen asked the Minister for Climate, Energy and the Environment whether research has been undertaken to assess the costs to fuel suppliers of complying with the renewable heat obligation; the details of these costs; and if he will make a statement on the matter. [6740/26]
Amharc ar fhreagraI propose to take Questions Nos. 7 and 8 together.
Introduction of the Renewable Heat Obligation (RHO) is a key priority for my Department. Following Government approval of the General Scheme of the Renewable Heat Obligation Bill 2025, priority drafting of the primary legislation required to administer the scheme is now underway.
Given the potential impact the RHO could have on end consumers, energy affordability and the impact on household energy bills were key considerations in developing the scheme.
Based on the currently proposed obligation rates of 1.5% in year one and 3% in year two, and costs socialised equally across an obligated party’s whole consumer base, the impact on a typical household energy bill will range between 0.4% and 0.7% in year 1, depending on fuel type.
In year 2, this will range between 0.9% and 1.4%. Any increase to obligation rates from year 3 will be subject to a further review of market conditions and scheme performance, and take into consideration the most cost effective and affordable way to achieve our renewable energy and climate targets.
My Department has also carried out extensive analysis and stakeholder engagement activities, including with energy suppliers, to ensure final decisions taken in relation to the scheme are evidence-based and supportive of its successful introduction.
Detail in relation to each phase of analysis, including the full assessment carried out on anticipated costs to end consumers, and the cost of meeting the obligation is available at: www.gov.ie/en/department-of-climate-energy-and-the-environment/publications/renewable-heat-obligation/.
