Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

The national energy efficiency action plan and the programme for Government include a commitment to roll out a better energy financing - formerly known as pay-as-you-save - energy retrofit scheme for domestic buildings. The better energy financing, BEF, model proposes that the current suite of Exchequer funded grants for energy efficiency measures will be replaced by a new financing scheme open to households and commercial operators. I stress, however, that it is my intention, in the context of the introduction of a BEF scheme, that the existing grants scheme aimed at those on low incomes will remain in existence.

The key benefit to homeowners of the BEF mechanism is that the scheme will allow them to secure up-front financing for energy efficiency upgrades to their homes and, in the process, remove one of the key barriers to energy efficiency. The principle underpinning the model is that up-front funding will be repaid via savings on customers' energy bills arising from energy efficiency measures. While that is the principle, it will be a challenge to ensure sufficient savings are realised within a short period to cover the costs involved. This is a particular focus of the project board referred to. The consumer will also benefit through the creation of a robust quality assurance process which will protect consumers and ensure high quality workmanship.

My Department, with the assistance of the Sustainable Energy Authority of Ireland, has put in place a project team to design the new retrofit financing scheme under the direction of a project board representing key State and industry stakeholders. The board has available to it expert advice in a range of relevant technical, legislative and financial areas to ensure the delivery of a BEF model designed to suit the Irish context. The board has been engaging widely with stakeholders as part of the development of the scheme and meets on a monthly basis.

It is planned that the design of the scheme will be fully developed over the coming months and that a public consultation process will be undertaken in quarter three of this year. My intention is that a memorandum for Government on the detailed design of the BEF programme will be brought forward in September 2013. Assuming I get approval, it will take a number of months to introduce the necessary technical, administrative and financial pillars to underpin the scheme. While primary legislation will also be required, a scheme will be in place in 2014, in accordance with the Government's commitment set out in the programme for Government.

Additional information not given on the floor of the House.

In the interim, the Government has committed over €44.5 million in Exchequer capital funding for the better energy programme in 2013, which will mainly involve grant based expenditure across better energy homes, better energy warmer homes and better energy communities. I have also recently obtained Government approval to continue the better energy homes scheme into 2014 until such time as the better energy financing programme is ready to commence.

See this speech in context