Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank Senator Keogan for raising this important issue and for the opportunity to give an update on Government action to lower the average waiting times for applicants to the better energy warmer homes scheme.

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, cost optimal or carbon equivalent and to install 400,000 heat pumps in existing buildings over the next ten years. These targets represent a very significant increase in 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 up to 2030, to support homeowners to retrofit their homes.

My Department funds a number of grant schemes to support homeowners to improve the energy efficiency of their properties. These are administered by the Sustainable Energy Authority of Ireland. Since 2000, more than 450,000 homeowners have upgraded their homes with support from these schemes, representing almost one in four homes across the country. This has resulted in warmer, healthier and more comfortable homes that are easier to heat and light.

The programme for Government committed to ensuring that the retrofit programme is socially progressive, with a focus on low-income households and the better energy warmer homes scheme delivers a range of energy efficiency measures free of charge to low-income households vulnerable to energy poverty. Energy poverty is influenced by a person's income, the energy efficiency of his or her home and the cost of the energy used in the home. The scheme is currently available to households in receipt of either fuel allowance under the national fuel scheme, jobseeker's allowance for more than six months, having children under seven, family income supplement, one-parent family payment, domiciliary care allowance and carer's allowance where the applicant lives with the person being cared for. To date, more than143,000 homes have received free upgrades under the scheme.

Funding for the SEAI energy poverty retrofit schemes has increased significantly to over €109 million in 2021, with €100 million allocated to the warmer homes scheme. This is an increase of €47 million on last year's allocation and means that almost half of the total SEAI residential and community retrofit budget is available to support people vulnerable to energy poverty. The funding will mean that more households can receive free energy efficiency upgrades, leaving them better able to afford to heat their homes to an adequate level. I have also secured additional resources this year to expand the capacity of the SEAI to deliver the scheme. In addition to delivery capacity, supply chain has increased due to a new broader contractor panel that commenced at the end of 2020. Every effort is being made to maximise outputs in construction activity in the residential sector recommenced earlier this year. The commitment will not only help in reducing our carbon emissions, it will benefit low-income households in many homes. Homes will be warmer, easier to heat and more comfortable, supporting improved occupant health and well-being. Households are also more protected from changes to their income or in the cost of energy.

There are currently just over 7,000 homeowners on the warmer homes scheme work programme. Recent data from the SEAI indicates that for homes completed in the first half of 2021, the average time from application to completion was approximately 26 months countrywide. It is important to note that the average wait times have increased significantly due to the extensive Covid-19 related restrictions on construction activity during much of 2020, as well as between January and mid-April 2021 when the scheme was fully paused in line with Government guidelines. Wait times have been also negatively impacted by challenges associated with availability and longer lead times for materials. The SEAI has advised me that the average wait time should only ever be used as a general guide and that wait times vary based on the demand for the scheme at the time of application, as well as other factors, including the scale of works to be completed, access to the property, availability of materials and the weather.

Looking to next year, budget 2022 has allocated €202 million for the SEAI residential and community retrofit scheme and a further €10 million for the solar PV scheme. More than half of this amount, €109 million, will be used to provide free energy efficiency upgrades to households that are in or at risk of energy poverty. It is estimated that over 4,500 upgrades will be provided under SEAI energy poverty schemes in 2022.