Simon Coveney (Cork South Central, Fine Gael)
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Question 808: To ask the Minister for Communications, Energy and Natural Resources if his Department or its agencies are considering introducing a pay as you save scheme for energy efficiency; when he expects to roll out this scheme; his views on whether speculation about such a scheme is delaying energy efficiency projects as consumers adopt a wait and see approach; and if he will make a statement on the matter. [14865/10]

Brian O'Shea (Waterford, Labour)
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Question 815: To ask the Minister for Communications, Energy and Natural Resources his plans for better promotion of the warmer homes scheme and the home energy savings scheme; if he will provide professional advice to encourage people to avail of these schemes; if he will introduce a system where people availing of the scheme do not have to borrow money to pay the contractor in anticipation of the grant; and if he will make a statement on the matter. [15294/10]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 808 and 815 together.

The Home Energy Saving (HES) scheme and Warmer Homes Scheme (WHS) are directed at two separate sets of homeowners, namely those who wish to undertake energy efficiency measures and can afford to do so themselves, and those low income households who cannot afford to undertake the measures. For this reason promotion of the two schemes is very different.

Under HES, householders can avail of grants of up to 40% of the cost of energy efficiency improvement measures. Measures included are attic and wall insulation, very high-efficiency boilers, heating controls and Building Energy Rating (BER) assessments. The latter measure ensures that homeowners receive informative, professional advice from specially trained BER assessors, registered by the Sustainable Energy Authority of Ireland (SEAI). The HES scheme has to date been promoted heavily through a number of national press and radio advertising campaigns. These campaigns have been supported by ongoing media relations, which have resulted in high levels of interest in the scheme. The scheme also benefits significantly from awareness created by the over 2,500 contractors registered to the scheme. It is envisaged that further direct advertising of the scheme by the SEAI will be undertaken before the summer.

Given the particular vulnerability of the homes eligible for the WHS, this scheme is promoted through very different channels, primarily referral networks within the community such as GPs, HSE, St Vincent de Paul Society and MABS. This approach ensures that vulnerable eligible homes are directly identified and services provided at the earliest opportunity depending on installer availability. SEAI has in conjunction with a number of key stakeholders in the WHS published the 'Well and Warm' leaflet which highlights the services available. This leaflet has been distributed widely nationwide and is supported by information on the SEAI website.

In 2009, the WHS was delivered to 19,000 homes, whereas over 18,000 homes benefitted under HES. Whilst over €75 million has been allocated to the WHS and HES in 2010, my Department and SEAI are also developing the proposed retrofit programme, announced on Budget Day, which will further reduce energy costs and carbon emissions in homes and businesses while creating employment and developing a sustainable market for energy services in Ireland. The Programme will be the subject of a public consultation next month but in broad terms it will bring together the HES and the WHS as well as support programmes for business and the public sector.

This new Programme has the potential to be the most innovative, ambitious, energy-related initiative ever introduced in Ireland. It will significantly reduce CO2 emissions and contribute to meeting the national efficiency targets including the target of 33% set for the public sector. It will also create significant employment in the energy and construction sectors in support of economic renewal. Various finance models, including a Pay As You Save Scheme (PAYS), will be considered as part of the consultation process and it is the intention to introduce a programme that will offer the least possible upfront costs to customers.

There is no evidence to suggest that discussions about PAYS or any other model, has had a negative effect on the level of uptake of domestic energy efficiency grants. In the first six months of HES, since its launch in late March 2009 up until the publication of the Renewed Programme for Government, approximately 23,000 applications for grants were made. In the subsequent six months, since the Programme signalled that a PAYS model would be considered, the number of applications has increased to almost 27,000 – a total of 50,000 in 12 months. It is the case that pending the finalisation and introduction of the Retrofit Programme, the HES and the WHS remain fully open for business in 2010.