Dáil Éireann Debate, Thursday - 13 July 2023
182. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he aware of a survey (details supplied) which highlights barriers to achieving retrofit targets; how he plans to address these; and if he will make a statement on the matter. [35127/23]
View answer183. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications if he is aware of a survey (details supplied) which cites lack of availability of finance or grant funding as key barriers to achieve national retrofitting targets; how he plans to address this; and if he will make a statement on the matter. [35129/23]
View answerI propose to take Questions Nos. 182 and 183 together.
Evidence shows that a key barrier to scaling up the number of home energy upgrades is the financial constraints of homeowners. This is exacerbated by high upfront costs of retrofits and the long payback periods that can be associated with such investments. Lack of funds also curtails the number of retrofit measures homeowners choose to implement at the same time. It is for these reasons that "Financing and Funding models" was identified as one of the key pillars of our National Retrofit Plan. The Government has committed over €8 billion to 2030 to support the achievement of our national retrofit targets.
Last year, the Government launched a package of SEAI supports to make it easier and more affordable for homeowners to undertake home energy upgrades for warmer, healthier and more comfortable homes with lower energy bills. Following the introduction of the new measures, demand across the SEAI grant schemes was exceptionally high in 2022 with:
• Over 50,000 applications processed (up 140% year on year)
• Capital expenditure of €188 million (up 90% year on year)
• 27,199 home energy upgrades (up 78% year on year)
• 8,481 BER B2 upgrades completed (up 95% year on year)
• 4,438 fully funded energy upgrades for low-income households (up 85% year on year)
• A further 437 Approved Housing Body homes were supported under the One-Stop-Shop Scheme and an additional 95 low-income houses were supported under the Community Energy Grants Scheme.
• 16,827 attic and cavity wall measures supported (up 107% year on year
This strong performance has continued into this year. As of end June:
• 21,733 home energy upgrades have been delivered.
• Of these, 7,566 homes have been upgraded to a post works BER of B2 or better.
• 2,346 home energy upgrades completed under the fully funded schemes.
While the Government has committed a significant level of funding to support retrofit in the National Development Plan, it is clear that Exchequer funding along will not be sufficient to cover the entire cost of achieving our targets. For that reason, my Department is working with the Department of Finance, the Strategic Banking Corporation of Ireland, the Sustainable Energy Authority Ireland, the European Investment Bank and the European Investment Fund to develop a residential retrofit loan guarantee scheme, which will be backed by a counter guarantee provided by the EIB Group.
The loan guarantee will provide risk protection to retail credit institutions participating in the scheme and will enable credit institutions to offer loans with reduced interest rates to private homeowners and non-corporate landlords making comprehensive home energy efficiency upgrades more affordable to consumers. Further, it will signal to the banking sector, new sustainable business opportunities associated with retrofit and the transition to a low carbon economy as well as increasing the volume of retrofit activity within the State.
The development of this innovative scheme is a complex process involving several stakeholders. Intensive engagement to develop the scheme is ongoing and there has been extensive due diligence between the EIB Group and the Irish banking and credit union sector. Significant progress has been made to date, with two open calls for expressions of interest to participate in the scheme completed, and a number of banks and credit unions submitting formal expressions of interest.
The residential retrofit loan guarantee scheme will be the first consumer-focused guaranteed loan of its kind in Ireland. All stakeholders both at national and European level are committed to finalising the project and it is expected that the loan guarantee will be in place in Q3 2023.
