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

The Government, through the Sustainable Energy Authority of Ireland, SEAI, has invested over €145 million in Better Energy Homes and its forerunner schemes since 2009. The existing scheme is demand-led, with €76.146 million committed in Exchequer funding this year.

Better Energy Homes provides financial assistance for improving the energy performance of older homes built any time before 2006. The scheme enables homeowners to save money, while improving comfort and reducing harmful greenhouse gas emissions. It also promotes employment in the construction sector. The programme for Government commits to a phased transition from grants to a pay-as-you-save scheme after 2013. Following on from work completed last year, a project team has been established to bring forward a scheme design for the Government’s consideration by the middle of next year.

It is important to note that no measure has as yet been removed from the list of those supported since the Greener Homes scheme was subsumed into the wider Better Energy Homes scheme. Reductions in grant value have been made, but this is to ensure grant supports are in line with the reduced market prices. Clearly, it is essential that the transition from an Exchequer supported industry to one that is sustainable takes place in an orderly manner and it is the case that the SEAI will continue to operate its current schemes during 2013. Central to this will be engagement with stakeholders, including the Department of the Environment, Community and Local Government. The project team put together draws heavily on industry expertise.

The Better Energy Homes scheme has successfully supported the creation and retention of a large number of jobs in the past few years. These jobs have been underpinned by Exchequer capital funding provided via my Department’s Vote. In the light of the general pressure on all Exchequer expenditure and other demands on my Department’s Vote, including in future years in the area of broadband provision, new and innovative funding models must be pursued to ensure maintenance and enhancement of energy efficiency schemes. What is required is a retrofit model that is both sustainable and attractive to the consumer, which is why my Department is working closely with industry and stakeholders, including the banks, to design a scheme that does both. The protection of jobs is a key objective of the pay-as-you-save scheme and underlines the importance of a strong value proposition for consumers in the scheme’s final design.

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