Dáil debates

Wednesday, 19 January 2022

Saincheisteanna Tráthúla - Topical Issue Debate

Environmental Schemes

10:55 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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The main reason I bring up this issue is that there is a new national retrofit scheme to be announced shortly by Government. Currently, there are three schemes available. There is the better energy warmer homes scheme, which is a free scheme that applies to people who qualify under a range of social welfare headings. It has been in place since 2009 but has changed over that time. In 2009, attic insulation and cavity walls were the main ones that applied. In 2018, that was extended to include internal and external wall insulation and replacement of windows from single to double glazing. The problem is that if you applied at any time from 2009 on, let us say 2010, and qualified under the scheme, you would not have got the double-glazed windows. However, your neighbour could apply today and qualify for the replacement windows as well as the internal and external wall insulation. That is an anomalous system and needs to be changed. We must ensure people can apply under the better energy warmer homes scheme more than once.

There are two other sister schemes, which are grant-based. They are the better energy homes scheme and the one-stop shop scheme. In those cases, you get a grant and can apply on a number of occasions on the basis you have not claimed under a certain heading. The better energy homes scheme is where you get the contract yourself, whereas under the one-stop shop scheme, the State will arrange for the contractor. Under that scheme, you can apply for ventilation as well. Under both of those schemes, you can get solar panels, which are not available under the better energy warmer homes scheme, which is the free scheme and which is also taking up to 18 to 24 months.

I ask for a commitment that, under the new national retrofit scheme to be announced shortly, the better energy warmer home scheme, which is a free scheme for people on social welfare in specific areas, would allow them to apply more than once and be extended to include solar panels and ventilation, which is very important with Covid. The waiting time at the moment is 18 to 24 months. There should be consistency between schemes. This scheme has evolved over time and there is an anomaly where someone who applied at any time up to 2018 was not eligible for internal or external cavity walls for insulation and did not qualify for replacement windows. That is an issue in terms of combating fuel poverty, dealing with climate change and emissions reduction. We must ensure this scheme is amended. I seek a commitment that will happen.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I thank Deputy O’Donnell for raising this important issue. It is important and timely because the new scheme is under consideration and will be brought to the House quite soon. The Minister, Deputy Ryan, was unable to make the debate, but I will feed in the comments and issues the Deputy has raised because he is right on waiting times, giving greater access to the scheme, reforming the scheme, dealing with ventilation and solar panels and many other issues. This scheme is targeted with a significant amount of money around making our homes safer, warmer, healthier places to live in, and more efficient to run to play their part in relation to emissions and to make it more affordable for people to live in these homes. Those are the aims of the scheme and it will be updated and brought by the Minister to the House soon. I will feed in the Deputy's comments to make sure they are heard.

The programme for Government and the climate action plan have set ambitious targets to retrofit 500,000 homes to a building energy rating of B2 and install 400,000 heat pumps in existing buildings over the next number of years. These targets represent a significant increase in both the volume and depth of retrofit activity in Ireland. The recently published national retrofit plan sets out how we will achieve these targets and identifies an unprecedented €8 billion to support homeowners to retrofit their homes out to 2030.

The better energy warmer homes scheme delivers a range of energy efficiency measures free of charge to low-income households vulnerable to energy poverty. It is administered by the Sustainable Energy Authority of Ireland, SEAI. Since the start of the scheme, more than 143,000 homes have received free upgrades. In 2021, the average cost of the energy efficiency measures provided per household was €17,100. Activity under this scheme and the associated expenditure were significantly impacted in 2020 and 2021 by the Covid pandemic.

The Deputy raised the issue of the 18-month timeline, which is longer in some cases. That is not acceptable and we want to get back on track with that. It has been hit by Covid, which has affected the number of houses that could be reached.

The budget 2022 allocation for energy poverty schemes, including the better energy warmer homes scheme, is €109 million.

The SEAI’s business plan for 2022 is currently being examined by the Department of the Environment, Climate and Communications.

The eligibility criteria for the scheme were selected because they represented the view of the Department at the time on those areas where the limited resources available to the scheme could have the greatest impact. The Deputy was right to say they need to be looked at again. The criteria are kept under ongoing review with the Department of Social Protection to ensure they are consistent with and complementary to the other income support schemes offered by that Department.

There are currently just over 7,000 homes awaiting works on the better energy warmer homes scheme work programme. This includes homes that are currently undergoing works, homes that have been allocated to contractors for works, homes that have completed an initial home survey and are awaiting allocation to a contractor and homes that are awaiting an initial survey.

Until 2018, as the Deputy referenced, the scheme predominantly focused on delivering shallow measures, such as attic or cavity wall insulation. In many cases, where the walls were not cavity walls, only the attic was insulated. With the expansion of the scheme in 2018, internal and external wall insulation were introduced, which meant that solid wall properties could now receive insulation under the scheme. However, in line with the current one home, one visit rule, which the Deputy referenced, where a home has already received any works, it cannot receive further works under the scheme. This rule was introduced to help to manage demand for the scheme and ensure homes that had not previously benefitted from the scheme were prioritised. With the scheme expansion, many homeowners who only received attic insulation previously but who would, under current scheme rules, qualify for wall insulation began contesting the one home, one visit rule. The Department of Environment, Climate and Communications committed to review the rule and, in line with the Deputy's request, will assess the possibility of allowing second visits to homeowners. That is important and essential. Recommendations on the implementation of changes to the scheme to better target those most in need will be finalised shortly and brought to the House by the Minister, Deputy Eamon Ryan.

The provisions of the new national home retrofit scheme are currently being finalised. The new scheme will focus on the delivery of B2 retrofits with heat pumps as well as the development and expansion of the one-stop shop and retrofit market. That will reflect the request the Deputy has put forward today. I will make sure that the points the Deputy has made will be brought to the attention of the Minister, Deputy Eamon Ryan, tomorrow.

11:05 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael)
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I thank the Minister of State. The one home, one visit rule needs to be amended. There needs to be consistency across all schemes in terms of what is covered and how the schemes are administered. Through the better energy warmer homes scheme, which is a grant scheme, and the one-stop shop scheme, everyone, no matter who they are, should be able to access the same range of measures. That needs to happen.

The grants will have to be increased for the new retrofit scheme that is going to be announced. They will have to be accessible so that people from every walk of life, including people dealing with fuel poverty and those on social welfare, can access the entire range of measures. We cannot have a situation where people who claimed under a scheme prior to 2018 are omitted and are left with single-glazed windows. That needs to be changed to double-glazing, at a minimum. I look forward to that review taking place.

I also look forward to the announcement of the new retrofit scheme that will include multiple visits to households and is based on ensuring that all schemes are consistent, including the better energy warmer homes scheme. I also hope that grants will be extended and other forms of supports are available to ensure that all families in houses can avail of the retrofit programme. I also hope that the waiting times are brought down.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I again thank the Deputy for raising this matter. He has covered most of the issues that need to be addressed through the new schemes that are being brought forward. I have listened with interest to the points raised by the Deputy. I will make sure they are brought to the attention of the Minister and his team in the Department who are working on these matters.

As I mentioned earlier, the new national residential retrofit plan, published on 4 November as part of the Climate Action Plan 2021, sets out how we will achieve ambitious targets to retrofit 500,000 homes to a building energy rating of B2 and to install over 400,000 heat pumps in existing buildings over the next number of years. It identifies an unprecedented €8 billion to support homeowners to retrofit their homes to 2030. We must make sure those schemes are reformed correctly to make use of that money and ensure it reaches the right people, those who need assistance, as the Deputy has identified. The plan sets out measures designed to address barriers to retrofitting in the key areas of driving demand and activity; financing and funding; and supply chain, skills and standards. It also sets out measures to support those least able to afford to retrofit to participate. Those include the people the Deputy is representing tonight and those he has mentioned in his questions. They include people in low-income households and in the rental sector. It is important to point that out.

The annual allocations set out in the plan totalling €8 billion will primarily be used to fund the expansion and enhancement of the SEAI residential and community retrofit schemes, including the warmer homes scheme, and their reformation, as well as other initiatives to support retrofitting. The consistent and significant increase in the annual allocations will help the sector to grow in a sustainable way over the years to come.

Funding for the SEAI's free energy poverty retrofit schemes has increased dramatically in recent years and we want to build on that. It increased from €15 million in 2015 to €109 million in 2021. This shows the Government’s commitment to the issue and to reflect the needs the Deputy has highlighted. The budget 2022 allocation for energy poverty schemes, including the better energy warmer homes scheme, is €109 million. As I said earlier, the SEAI’s business plan for 2022 is currently being examined by the Department of the Environment, Climate and Communications and will be announced soon.

The average value of the energy-efficiency measures provided per household under the better energy warmer homes scheme has also increased very significantly, year on year, from approximately €3,000 per home in 2018 to more than €17,000 in 2021. We recognise that it will probably cost more than that for the full retrofit scheme that is now being recommended. The deepening of retrofits provided does not mean that each home takes longer to deliver and it should not mean that. We want to bring those waiting times back down. I am confident that the actions I have outlined will increase output, address the Covid-related delays and have the effect of significantly decreasing average wait times over the coming year. We need to make sure we can get the one home, one visit rule changed.