Michael Noonan (Limerick East, Fine Gael)
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Question 136: To ask the Minister for Communications, Energy and Natural Resources his views on the way the market for green technologies has matured in view of the decision to cut the budget for the greener homes scheme; the criteria his Department used to make the market analysis of green technologies in coming to this opinion; and if he will make a statement on the matter. [37227/08]

Joanna Tuffy (Dublin Mid West, Labour)
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Question 155: To ask the Minister for Communications, Energy and Natural Resources the reason he approved a cutback of €15 million to the greener homes scheme in budget 2009; and if he will make a statement on the matter. [37142/08]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 136 and 155 together.

The Greener Homes Scheme, since its launch in March 2006, has provided support for home owners investing in renewable energy heating technologies. The scheme has evolved over that period, supported by appropriate budgetary allocations year on year. Phase III continues to support the installation of a variety of technologies in existing homes. Demand trends in light of the ongoing adjustments that have been made to the scheme, in light of market developments and changes to the building regulations, will be reflected in appropriate budgetary allocations for 2009. Any support scheme such as Greener Homes must evolve over time to a point where the industry is self sufficient and this overall approach has been reflected in the adjustments made to this scheme at appropriate junctures to date.

The stimulus that the scheme has given to the development and maturity of the industry, with 16,000 systems already installed, has focussed primarily on improving the supply chain for the products, services and fuels. The application of product standards and installer training and quality framework has ensured that consumers are both informed and confident in their choices. There are currently 940 products registered under the scheme. All these products meet minimum quality and efficiency criteria which allows for informed choice on the part of the consumer whether attracting financial support or not.

Quality and training is an important aspect of supporting the development of a sustainable industry. Training courses have been developed for residential heating technologies. These courses are FETAC accredited and mandatory for registration under the Greener Homes Scheme since March 2008. There are currently 1,300 installers registered under the scheme who have completed these training courses and it will continue to be a requirement for any installer wishing to register under the scheme. The Greener Homes Scheme (and the REHeat scheme for the commercial sector) was also designed to enable a reliable supply chain for wood pellet fuels. Securing a significant installed base of appliances has created a demand that has resulted in increased and more geographically diverse supply and more competitive pricing.

The Building Regulations 2008, which came into force on July 1st, make the inclusion of renewable energy in new homes mandatory. Therefore, it is no longer appropriate to grant aid installation of renewable technologies in new homes with consequent impact on the budgetary requirement for the scheme. Also, the Building Regulations mandatory requirement will of itself significantly stimulate demand for renewable energy products and services. The installation of renewable heating systems in existing homes, which is typically more complex and more expensive, warrants continued support in the short to medium term while the market reaches maturity. The existence in the market of 1,300 installers who have successfully completed nationally accredited training will underpin this regulatory requirement.