Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

I thank the Deputies for raising these important matters of our time.

Clearly, the current situation we are witnessing regarding significant increases in energy bills and the cost of living is a matter of serious concern. The Government is keenly aware of the growing pressures this is placing on families and businesses, particularly households on lower and middle incomes. The increasing cost of energy is an issue that affects not just Ireland but all EU member states. Increased international gas prices because of the Russian invasion of Ukraine have had a serious knock-on effect on the rate of energy poverty. The Russian Government is doing its best to use energy prices as a weapon against EU citizens, particularly the most vulnerable. Making people cold and turning them against governments is their precise desired outcome.

It is imperative that the Opposition and all parties here focus on issues the Government can address and what needs to be done. I will outline what we have done and what supports are in place for retrofitting, so that it is crystal clear what supports are available to homeowners. As Members will be aware, in response to this situation, the Government has already put a €2.4 billion package of support policies and measures in place. We understand that further action will be needed, and this will be forthcoming in the budget announcements next week. Given that energy poverty is influenced not only by the cost of energy and a person's income but also by the energy efficiency of his or her home, I am pleased to have the opportunity to make a statement to the House about the measures introduced by the Government which will make it easier and more affordable for homeowners to undertake home energy upgrades.

First, in response to the war in Ukraine, we increased the grant aid for attic insulation to 80% of the typical cost, with up to €1,500 available in grant support. The data is not conclusive, but between one third and one half of homes could benefit significantly from this measure. This will likely pay back in less than one year, and I understand credit unions and banks are supporting people if they need to bridge the gap. Similarly, for cavity wall insulation, up to 80% of the cost, up to €1,700, is available to help householders. We are seeing more uptake to the end of August than in the whole of last year. The SEAI has said that it had the busiest start to a winter ever. We are seeing a large increase in the interest in and application of solar PV on people's roofs. We have a target of less than 19,000 individual home upgrades this year, and we will deliver in excess of that target. We also opened this scheme to landlords to stimulate their investing in homes because those in the rental sector must also be protected.

Second, we have more than doubled the monthly output of the warmer homes scheme. However, it is still working through the backlog that built up during Covid. We are targeting a significant increase next year and, in line with the national development plan and with the receipts from the carbon tax that fund this, we must increase it significantly as it is a critical measure. In February, we announced reforms to the better energy warmer homes scheme so that it could better target free energy upgrades for those most in need. Since the announcement, the scheme now accepts applications from homeowners who previously had work done under the scheme so that they can benefit from the deeper measures now available. The eligibility criteria for the scheme were also extended to encompass people who have been in receipt of disability allowance for over six months and have a child under seven years of age. In addition, the scheme is now targeting the worst performing properties by prioritising homes built and occupied before January 1993 and with a BER of E, F or G. This scheme is working. The output has tripled. As is the case with so many other schemes, the level of response from the public and the industry is beyond compare, and it will continue to rise as we go into next year and subsequent years.

The third element of our retrofit plan is the national retrofit scheme, which launched in February and went live in April. This seeks to support homeowners by delivering deeper, decarbonisation measures. It hit a chord with homeowners with more than 20,000 people already engaging with one-stop shops. This programme is a long-term plan and is designed to build competence and capacity over time. It is a 30-year project. We will not reach the maximum of this scheme in one year; it will take five years of steady growth and good planning. Having spoken to those in the industry, I am aware that they are investing in new employees, training and hardware, and are rapidly scaling up their industrial capabilities. This was never possible before because there was much stop-starting in the support given in previous years.

The national retrofit plan is designed to address barriers to retrofit across four key pillars: to drive demand and activity; to provide financing and funding; to improve supply chain, skills and standards; and to improve the governance of the scheme. Barriers were identified for each pillar, and time-bound policies, measures and actions were put in place to address them. The initiatives in the plan are also guided by a number of key principles. First, we are seeking to ensure fairness to all and support a just transition. Second, we seek to embrace a universal approach covering all housing types and consumer segments. Third, we seek to design customer-centric solutions to reduce the costs and complexity, making the process easier for those investing in retrofitting. Fourth, we are seeking to encourage retrofits to cost-optimal level and maximise emission abatement. Finally, we seek to stimulate and support the market to instil the confidence to invest, grow and take on more workers. We are now delivering that for the betterment of the people.

A further element of the plan is how we work with local authorities and approved housing bodies. This last plank in our retrofitting plan is critical. I have been to many local authorities around the country, asking them what they are doing and making sure they are scaling up their capacity and competency to deliver higher targets.

We have also underpinned the upgrades in the rental sector with opening all these grants to landlords to upgrade properties for tenants. In addition, as part of Housing for All, the Minister with responsibility for housing has detailed that these retrofits will become compulsory for lower-performing homes in the coming years.

I am happy to report that SEAI data shows that since the launch of these new measures, demand across the retrofit schemes has been exceptionally high. As of the end of last month, more than 30,000 applications for support had been received by SEAI. This is more than double the number received during the same period last year. This demand is translating into delivery, with 13,400 home energy upgrades already completed with support from across the range of schemes. This is an increase of 70% when compared to the same period last year. My colleague, the Minister of State, Deputy Ossian Smith, will give further detail on these positive developments in his closing statement.

These initiatives are being funded by the unprecedented national development plan financial allocation for residential retrofit of €8 billion to 2030. A total of €5 billion of this funding will be sourced from carbon tax revenue. A total of €244 million has been allocated for SEAI residential and community retrofit schemes and the solar PV scheme this year. This is the highest ever allocation for the schemes and includes an allocation of €118 million for SEAI energy poverty schemes. In addition, €85 million funding has been provided by the Minister for Housing, Local Government and Heritage for the local authority energy efficiency retrofit programme. This means that of the total Government retrofit budget allocation of €329 million, approximately 60%, or €203 million, has been allocated to dedicated energy poverty schemes and local authority retrofits. This is progressive. We are deliberately targeting and making sure that the money goes where it is most needed. This does not mean we do not provide, help and assist other parts of Irish society. We are doing this in a balanced and deliberately strategic way.

On 3 August, the Department published a review of the strategy to combat energy poverty alongside a public consultation. The review showed strong delivery on the existing strategy with many of the original actions already exceeded. The public consultation closed on 5 September and the responses received are helping to inform the development of a new action plan to combat energy poverty. Other sectoral engagement across Government will also be considered in developing the new action plan.

The action plan will set out a range of measures to be implemented ahead of the coming winter as well as key longer-term measures to ensure that those least able to afford increased energy costs are supported and protected. The new plan will be published shortly after the budget. A cross-departmental steering group, chaired by the Department, is developing the new action plan. The Department is also engaging with relevant Departments, agencies and NGOs on a bilateral basis. The group will also work with the ESRI as part of a research network to improve the measurement and monitoring of energy poverty in Ireland and provide insights that enhance policy design to protect vulnerable householders.

These retrofit schemes are recognised internationally as some of the best examples and as some of the best funded and most progressive. We will never be satisfied because it will never be enough in these exceptional times. These plans are working. The Irish people are responding. We are starting to put in PV and insulation at levels never seen before and we are only warming up.

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