Colm Burke (Cork North-Central, Fine Gael)
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88. To ask the Minister for Environment, Community and Local Government if consideration will be given to the provision of a solar PV grant for new build properties (details supplied); and if he will make a statement on the matter. [60399/25]

Alan Dillon (Mayo, Fine Gael)
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I thank the Deputy for his question. Our Department is very committed to helping households cut energy, reduce emissions and generate their own clean power. Grants of up to €1,800 are available through the SEAI for solar photovoltaic, PV, installations in homes built and occupied before 2021. Since 2022, over 90,000 homes have received grants totalling over €196.7 million, delivering 450 MW of installed capacity and saving over 93 kt of CO2.

This high demand shows the scheme is working and the solar industry has scaled up to meet market needs. Homes built since 2021 must comply with Part 11 of the building regulations which set high energy performance standards. Builders can meet these requirements by installing heat pumps and-or solar PV during construction, which is typically cheaper than retrofitting. New builds, therefore, already enjoy significantly higher energy efficiency compared to older homes.

In addition, since May 2023 the VAT rate for solar PV installation in private dwellings was reduced to zero. This applies to new builds as well as existing homes. There are no plans to change the eligibility criteria at this stage but the scheme will be kept under review. Meanwhile, households can benefit from the clean export guarantee which pays for the excess electricity exported to the grid. The rate is currently between 15 cent and 25 cent per kilowatt, depending on suppliers. The Government is also investing record funding of over €550 million in budget 2026 to support energy upgrades, including solar PV and the national retrofit plan. As we are making it easier and cheaper for households to install solar PV through grants, zero VAT and export payments, we will also ensure newer buildings meet high energy standards from day one.

Colm Burke (Cork North-Central, Fine Gael)
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I refer to a person who has worked abroad to save money in order to come back and build a house in Ireland. Due to the contribution they are making to the cost of building, they are unable to receive any grants and are also excluded from solar energy grants.

People with a set income are only entitled to borrow a certain amount of money. They may also receive support from parents. Where parents provide support, that brings people building a house under the qualifying criteria. Therefore, they do not receive any grants. Parents are providing funding to help a son or daughter build a house but that brings them under the grant qualifications and they are then not entitled to any grants for solar panels. Could that issue be reviewed? I refer in particular to people who are not getting any grants of any description under the new build programme.

Alan Dillon (Mayo, Fine Gael)
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I thank the Deputy and understand the merits of the question on affordability and the challenges people may encounter when building homes. However, the grant eligibility for solar PV is very much focused on older homes where the need is greatest. Many homes built since 2021 must comply, as I said in my earlier contribution, with Part L of the building regulations and require high energy performance. Many builders have included heat pumps or solar PV during construction. Indeed, it reduces the overall installation cost because if it is not included in a new build, the costs will be greater compared to retrofitting. We are very much focused on older buildings and, therefore, newer buildings already have a higher energy efficiency than others.

Colm Burke (Cork North-Central, Fine Gael)
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As I said, I am speaking about people who are restricted in the amount they can borrow. Therefore, they are receiving assistance from parents which brings them under the qualifying criteria. Many of the new houses that are being built have air to water systems which are very expensive. People are installing such systems but are getting no support from the State because they receive support from parents. It is an issue that needs to be examined, in particular for those who do not qualify for a first-time purchase or owner's grant. When they get support from immediate family, they are penalised. Should there be a scheme whereby people can qualify for grants for heating systems when they have not qualified for a first-time owners grant? This would provide some incentive to put in place a system that is efficient and cost-effective.

Alan Dillon (Mayo, Fine Gael)
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I again thank the Deputy for his response. We have already made changes to the uptake on solar PV installations. In May 2023, in order to bridge the affordability challenges we reduced the VAT rate to zero, which applies to new builds as well as existing homes. That was an important step forward. In doing so, we drove down the cost. As I said, retrofitting new homes on the basis that they will be eligible is not best practice for any builders, contractors or installers. The cost will be significantly greater. We will consider grant eligibility and that will be kept under review. At present, it is not intended to change the scheme. We have prioritised homes with the greatest need and over 90,000 homes have received grants extending to over €196 million.