Dáil Éireann Debate, Wednesday - 10 March 2021
102. Deputy Alan Farrell asked the Minister for the Environment, Climate and Communications if he has had engagement with Government colleagues and other Departments regarding the way to alleviate the financial burden that retrofitting poses for householders in a way that will encourage and facilitate greater levels of retrofitting; and if he will make a statement on the matter. [1578/21]
View answerThe Programme for Government and the Climate Action Plan set ambitious targets to retrofit 500,000 homes to a Building Energy Rating of B2/cost optimal and to install 400,000 heat pumps in existing buildings over the next 10 years. In order to achieve these targets, we will need to address a range of issues including long payback periods and homeowners’ ability to pay the upfront costs associated with retrofit. That is why financing will be a key pillar of our national retrofit plan.
Government has signalled its commitment to achieving these targets and to supporting the cost of retrofit through allocations of €3.7 billion in the National Development Plan and €5 billion in the Programme for Government.
These allocations have helped to deliver increased budgets for SEAI grant schemes, which play a crucial role in assisting homeowners to fund retrofits. This year’s budget for SEAI residential and community retrofit programmes is €221.5 million. This represents an 82% increase on the 2020 allocation and is the largest amount ever for the schemes.
It is clear however, that it will not be possible to meet the full cost of retrofit programme over the decade to come through Exchequer funding alone. Additional action is required to mobilise private capital and develop financial models that are suitable for each householder group. In this regard, my Department are engaging with the Department of Finance and the Strategic Banking Corporation of Ireland in relation to alternative measures that could further reduce the financing cost of retrofit for homeowners. I have also worked closely with the Minister for Public Expenditure and Reform on financing matters and will continue to do so as part of the NDP review. My Department has also engaged with a range of other Government Departments and agencies, both bilaterally and as part of the Retrofit Taskforce.
