Bernard Durkan (Kildare North, Fine Gael)
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Question 185: To ask the Minister for Communications, Energy and Natural Resources the way his recent decision to slash the grants for the provision of alternative energy heating systems in dwelling houses is likely to encourage a reduction in consumption of fossil fuels; if a cost benefit analysis was undertaken; the results of such study; and if he will make a statement on the matter. [23286/07]

Eamon Ryan (Dublin South, Green Party)
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The intention of Greener Homes scheme is to stimulate consumer investment in renewable heating solutions and to develop the market for renewable technologies and fuels, thereby reducing CO2 emissions in the domestic sector. Over 16,000 grants were approved under Phase I which ran from April 2006 to August 2007.

Since the scheme was launched there has been a dramatic increase in renewable technology suppliers and a ten-fold expansion in the number of renewable energy products available on the market. This clearly demonstrates the very significant level of market development since the scheme was first launched. The first phase of the scheme has achieved all of its objectives speedily and within budget. Consequently, the grant levels are being reduced for some technologies where it is clear that the market has reached a level of maturity to allow it to continue at a lower rate of support. Other grant levels remain unchanged.

The objective in Greener Homes Phase II is to consolidate the market, underpinning it with quality standards and training and providing for a long-term future that is not grant-dependent. The aim is to ensure that the market for these products, services and fuels continues to develop strongly, allowing suppliers and installers to consolidate their market offerings ahead of an unsubsidised market.

The new building regulations announced recently by my colleague, John Gormley T.D., Minister for the Environment, Heritage and Local Government, will mandate the use of renewable heating systems in all new buildings which should provide a further boost to the development of these technologies. From a cost-benefit perspective the Greener Homes Grant Scheme will continue in terms of CO2 reductions, market development and access to cleaner renewable technologies and fuels by consumers.