Under the EU climate framework, Ireland has national targets under the Effort Sharing Regulation and the Land-Use, Land-Use Change and Forestry Regulation. The figure quoted is a cumulative estimate covering a range of climate and energy legislation, each with their own unique compliance frameworks – none of which include the imposition of direct fines or penalties. The ESR framework provides for the use of additional compliance measures including the purchase of surplus allowances from Member States who have overperformed on their national targets.
However, estimating these costs requires working with significant data limitations. This was acknowledged by the Climate Change Advisory Council (CCAC) and the Irish Fiscal Advisory Council (IFAC) in their report.
The Domestic Solar PV grant scheme has gone from strength to strength since its launch, with over 10,000 applicants supported in 2022. 2023 proved even more successful, with domestic solar installation further supported by the Government decision to apply a zero percent VAT rate for the ‘Supply and installation of solar panels on domestic premises’ from 1 May, 2023. By the end of 2023, 22,214 homes had received grant supports and 28,000 in 2024. In 2025, over 33,000 homes received grant supports. A high level of demand for the scheme is continuing in 2026. By the end of June 2026 over 15,800 homes were supported (10% increase year on year) and over 26,100 applications were received (81% increase in applications year on year).
The Solar PV for the Medically Vulnerable Scheme is a targeted scheme for the installation of solar photovoltaic (PV) panels for customers/households who are registered on the life support category of the Priority Services Register. The scheme comprises a fully funded 2kWp solar PV system for eligible households. This includes survey/design, supply, installation, and the post works BER. This year I have allocated €11.7 million to the scheme. To end June, energy suppliers have drawn down €1.74 million and 257 households have received an upgrade under the scheme.
The cross-Government National Energy Affordability Taskforce (NEAT), chaired by my Department, was established June 2025 to identify and implement measures to enhance energy affordability for households and businesses. The first report of the NEAT, published last November, helped to inform key aspects of Budget 2026, including new measures to further support householders contained in the National Residential Retrofit Plan 2026.
The NEAT is now working intensively to prepare an Energy Affordability Action Plan. This work includes examining how to support increased uptake of home energy efficiency upgrades, in particular for lower-income households at risk of energy poverty, and continued development of the Sustainable Energy Authority of Ireland's retrofit schemes in line with commitments in the Programme for Government. The Action Plan will be focused on short, medium and longer-term measures (including targeted measures) to support households and businesses to meet their energy costs. The Action Plan will be completed in Q3 of this year.
