Cathal Crowe
Question:132. Deputy Cathal Crowe asked the Minister for the Environment, Climate and Communications the estimated annual cost of a scheme (details supplied). [40917/24]
View answerThursday, 10 October 2024
Questions (132, 133)
Cathal Crowe
Question:133. Deputy Cathal Crowe asked the Minister for the Environment, Climate and Communications the annual funding provided for SEAI grants for heat pumps; and the estimated annual cost of a policy (details supplied). [40918/24]
View answerWritten answers
I propose to take Questions Nos. 132 and 133 together.
The Programme for Government and Climate Action Plan set ambitious targets to retrofit the equivalent of 500,000 homes to a Building Energy Rating (BER) of B2/cost optimal level and the installation of 400,000 heat pumps in existing homes by end-2030.
A range of measures has been put in place in recent years under the National Retrofit Plan in order to support the achievement of these targets.
Grant support of up to €6,500 is available for the installation of air to water heat pumps as a standalone measure under the SEAI's Better Energy Home Scheme. For homeowners undertaking a deep retrofit with a heat pump under the National Home Energy Upgrade Scheme (NHEUS) or the Community Energy Grant (CEG) Scheme, additional grant support is available towards required heating system upgrades (radiators etc), as well as a bonus payment of €2,000 to eligible homeowners. This means that grant support of up to €10,500 is available to homeowners upgrading to a heat pump as part of a deep retrofit project. Grant support of €1,500 is also available towards the installation of mechanical ventilation systems for homeowners undertaking a deep retrofit under the NHEUS and the CEG Schemes.
The grant schemes provided by SEAI are reviewed on a regular basis, taking account of demand, research, innovation, evolving technology and other relevant factors.
A record capital budget of €430 million has been allocated for SEAI residential and community energy upgrade schemes (including the Solar PV Scheme) for 2024. This funding envelope includes funding for grant supports for heat pump installations under the SEAI schemes. Figures from SEAI shows that to the end of September 2024, this funding has delivered 38,000 home energy upgrades, of which 15,037 upgrades are to a post work Building Energy Rating of B2 or better. The funding has also supported 2,584 heat pump targets installations.
Budget 2025 will further build on this investment with funding of €469 million from the Carbon Tax for these schemes. In addition, VAT will be reduced to 9% (from 13.5%) on heat pumps, making it more affordable for homeowners to switch to efficient electric heating. This is the lowest VAT rate that is allowable under the VAT Directive. This is in addition to the already generous grants that are available from SEAI.
Determining an accurate cost estimate for the introduction of a Boiler Scrappage scheme to exchange oil boilers for fossil-free alternatives is a complex matter that would need to be informed by a range of factors including:
• The eligibility rules and the associated number households availing of grant support in any single year;
• Which scheme a homeowner applies for i.e. part funded or fully funded; and
• If households require additional enabling works, e.g. insulation measures, to ensure the property has a sufficient level of heat retention.
Question No. 133 answered with Question No. 132.