Dáil Éireann Debate, Thursday - 26 February 2026
226. Deputy Erin McGreehan asked the Minister for Climate, Energy and the Environment the basis on which the renewable heating obligation rates of 1.5% and 3% were determined; and whether these levels will result in additional renewable fuel deployment beyond current market activity. [15722/26]
Amharc ar fhreagra229. Deputy Erin McGreehan asked the Minister for Climate, Energy and the Environment the projected cost impact of the renewable heating obligation on households reliant on home heating oil, particularly in rural areas. [15725/26]
Amharc ar fhreagra230. Deputy Erin McGreehan asked the Minister for Climate, Energy and the Environment whether he plans to publish a trajectory of obligation rates beyond year two to provide certainty to industry and ensure the scheme delivers meaningful emissions reductions. [15726/26]
Amharc ar fhreagra231. Deputy Erin McGreehan asked the Minister for Climate, Energy and the Environment whether he will consider revising the proposed obligation rates to ensure the renewable heating obligation delivers genuine decarbonisation while protecting consumers from unnecessary cost increases. [15727/26]
Amharc ar fhreagraI propose to take Questions Nos. 226, 229, 230 and 231 together.
The Government is committed to ensuring a secure, affordable and sustainable energy system for all consumers. The reliance of our heating sector on fossil fuels is a significant contributor to Ireland’s high energy import dependency and carbon emissions, and the introduction of the Renewable Heat Obligation (RHO) is a key objective for me, as Minister, to help address these challenges.
Given the potential impact that the RHO could have on end consumers, energy affordability and the impact on household energy bills were key considerations when developing the scheme. As such, a number of scheme parameters have been designed to allow flexibility to obligated parties in meeting their obligations which will, in turn, reduce the overall burden on the end consumer.
Design of the RHO included two phases of analysis, stakeholder engagement activities, and extensive industry engagement. Feedback received informed a full impact assessment on the scheme structure, considering critical factors, including the availability of renewable fuels to meet the obligation, and the likely economic and social impact of the obligation. Results of this work informed final decisions taken in relation to the Government approved general scheme of the Renewable Heat Obligation Bill 2025.
Decisions made in relation to initial starting rates were based on an extensive examination of the scale of obligation required to meet Ireland’s renewable heat targets, and resulting impact on end consumer costs.
Based on the currently proposed obligation rates of 1.5% in year one and 3% in year two, and assuming costs are 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. To provide certainty to developers and obligated parties, it is envisaged that indicative, long-term obligation rates out to 2030, will be published as part of this review.
Detail in relation to each phase of RHO analysis, including the full assessment carried out, is available at: www.gov.ie/en/department-of-climate-energy-and-the-environment/publications/renewable-heat-obligation/
