Terence Flanagan (Dublin North East, Fine Gael)
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Question 202: To ask the Minister for Communications, Energy and Natural Resources if he will respond to correspondence (details supplied) regarding the domestic installation market; and if he will make a statement on the matter. [13570/11]

Pat Rabbitte (Dublin South West, Labour)
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I understand that officials from the Sustainable Authority of Ireland (SEAI) have met representatives of the association on a number of occasions. However, the presence of the energy suppliers in the retrofit market requires clarification. First, just one energy supplier is processing applications on behalf of customers. This is being undertaken on a trial basis with a view to designing an appropriate industry wide solution. The number of applications processed to date through this mechanism is approximately 300, which when compared to the 18,000 applications of a similar type represents a fraction of the total market. In other words, the vast majority of work and resultant employment arising from Exchequer aid being provided under the National Retrofit Scheme is being undertaken by the private sector. This situation will also pertain in respect of the additional €30 million provided for the scheme in the recent Jobs Initiative.

A second issue circulating is that energy suppliers have access to alternative funding arrangements from the Government. This is not the case. Any funding that the SEAI receives from my Department is made available on an open and transparent basis, as is evidenced by the Support for Exemplar Energy Efficiency Projects and Energy Efficiency Retrofit Fund programmes run by the SEAI in recent years. Some companies have private arrangements with finance houses, which they leverage to provide a one-stop-shop approach for customers. This is to be encouraged as it reduces the burden for customers seeking to improve the energy efficiency of their homes and represents a model for future activity.

In launching Better Energy: The National Upgrade Programme on 11 May last, I made reference to the importance of access to finance. The Government has demonstrated its commitment to this area by allocating an additional €30 million to the retrofit programme, which will support a further 2,000 jobs this year. While State support helps develop the overall market and incentivise action, it is not the long-term solution. Sustainable markets must develop, based on sound economics and available financing from the banks. Government has given a clear direction that support for domestic energy efficiency measures will cease after 2013. This is the right decision, as the retrofit market needs to wean itself off State subsidies and identify new ways of attracting consumers.

In this regard, I have directed my officials to bring forward a pay-as-you-save scheme that will seek to reduce or eliminate the upfront cost of retrofit measures for consumers. Key partners in the development of this innovative financing mechanism will be the pillar banks, which I anticipate will be willing and active participants. I stress that in this scenario, the resultant work will continue to be available to all participants in the retrofit industry.