Mr. Robert Deegan:

The range of schemes we have available at the moment are focused on two things: ensuring the fabric is upgraded to the standard that would allow a heat pump to operate effectively and efficiently, and then the heat pump itself. Some other jurisdictions look at those in isolation. We look at them in an integrated way and that is the right way. We want to ensure the heat pumps operate in an effective way and the heat-loss indicator is the tool that has been used until now to ensure the heat pumps operate effectively. That measures the amount of heat being lost through the walls and windows of a house. Heat pumps operate in a different way from gas or oil boilers. They involve a far lower temperature than oil or gas boilers, which blast out heat. A heat pump provides more constant heat.

As I mentioned earlier, universality and being people-centred are the influencing principles behind the design of the schemes so we have a combination of measures. They are the warmer homes scheme for people who live in energy poverty and the better energy homes scheme for people who want to take a step-by-step approach over a period. They might do their fabric first to stop losing heat and install the heat pump later. There is also the one-stop shop scheme which focuses on bringing properties to a B2 energy rating and installing a heat pump all at once. We recognise that not everyone will be able to do that. That is why we have an option available for people who want to do it step by step, and we have the warmer homes scheme for people with the lowest incomes. There is a pilot under the warmer homes scheme for installing heat pumps. The number has been relatively low so far but we hope to build on that this year and in the coming years, because the budget is so big for the warmer homes scheme now that we really want to ensure that at the same time as addressing energy poverty to the greatest extent possible, we are meeting our climate objectives. It is about balancing the scorecard the whole time. We are trying to maximise the outputs and deepen the retrofits to ensure that homeowners get the best possible homes for their health and well-being, so they have lower energy bills and for all the other reasons. The fabric and the heat pump as a package is the way it is being done at the moment for most houses. However, there is a whole cohort of houses that are suitable for a heat pump straightaway. Heat pumps are the preferred option and we are trying to make it as easy as possible for home owners to make the decision to switch from gas and oil and to install a heat pump when their gas or oil boiler comes to the end of its life. We are working with the Sustainable Energy Authority of Ireland, SEAI. New initiatives will be rolled out on an ongoing basis to try to make the customer journey as easy as possible and to enable homeowners to make that decision.

I will mention one other pilot. It is called the heat loss indicator, HLI, pilot scheme, for homes that do not have the standard of heat loss currently being applied by the SEAI. We are doing it in a controlled way so the homeowner is aware of all the benefits of the heat pump and monitoring energy use and bills later, so we can have an evidence base for future changes to the heat loss criteria.