Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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128. To ask the Minister for Communications, Climate Action and Environment the full year cost of all home energy upgrades supports and schemes in 2024 and 2025; and the annual current and capital funding breakdown per scheme divided between Exchequer funding and carbon tax receipts, including schemes (details supplied).; and if he will make a statement on the matter. [40866/24]

Eamon Ryan (Dublin Bay South, Green Party)
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The Climate Action Plan and National Retrofit Plan set ambitious targets to retrofit the equivalent of 500,000 homes to a Building Energy Rating (BER) of B2/cost optimal and the installation of 400,000 heat pumps in existing homes to replace older, less efficient heating systems by end-2030.

To promote and incentivise the achievement of these targets, the Government has put in place a package of supports to make it easier and more affordable for homeowners to undertake home energy upgrades, for warmer, healthier and more comfortable homes, with lower energy bills.

A record capital budget of almost €430 million was allocated to the SEAI residential and community energy upgrade schemes for 2024, €380 million of which was provided from the Carbon Tax. The balance of €50m came from the European Regional Development Fund (ERDF). Details of the core budget allocation breakdown for 2024, for both Capital and Current funding, per scheme, including the provision from carbon tax, can be found in the attached table.

Budget 2025 includes record funding of €469 million from the Carbon Tax for Sustainable Energy Authority of Ireland (SEAI) residential and community energy upgrades, including the Solar PV (photovoltaic) Scheme. The final details of the capital and current 2025 funding allocations to each SEAI scheme and the 2025 retrofit targets are currently being finalised as part of preparations for the 2025 Revised Estimates Volume (REV 2025).

*The carbon tax allocation to the Warmer Homes Scheme was supplemented with an additional €50m capital funding from the European Regional Development Fund (ERDF)

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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129. To ask the Minister for Communications, Climate Action and Environment the estimated annual cost of introducing loans (details supplied). [40867/24]

Eamon Ryan (Dublin Bay South, Green Party)
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The Home Energy Upgrade Loan Scheme was launched on the 24 April 2024. It was developed by my Department in conjunction with the Department of Finance, the Strategic Banking Corporation of Ireland, the Sustainable Energy Authority of Ireland, the European Investment Bank and the European Investment Fund. The Government-backed €500 million Scheme is the first of its kind for both Ireland and the EIB Group and will play a crucial role in helping homeowners to invest in energy efficiency.

Under the Scheme, homeowners can borrow from €5,000 to €75,000 at significantly lower interest rates over a ten-year period to make their homes warmer and cheaper to run. The loans can be used by homeowners who want to undertake a deep retrofit involving several energy upgrades at the same time, or to carry out one or two upgrades that will significantly improve the energy performance of the home.

Once approved, the loans can be drawn before works begin. This gives certainty to homeowners that they have the funds for the planned energy upgrades, as well as any up-front costs or milestone payments. This is often identified by homeowners as a key barrier to upgrading their homes. As an additional bonus, households could also qualify for a lower cost green mortgage in the future, after they use their low-cost loan to improve their BER (Building Energy Rating) rating up to the required level.

PTSB, AIB and Bank of Ireland are now offering loans under the scheme, with rates starting from as low as 3% (pricing varies depending on the finance provider). In addition to the three pillar banks, it is expected that a number of credit unions from the Irish League of Credit Unions will join the scheme in the coming weeks, which will allow more people to access these affordable loans in their own communities. Additional finance providers are expected to commence offering loans later this year.

An objective of the Home Energy Upgrade Loan Scheme is to prime the commercial lending market to offer more attractive and competitively priced finance for deep home energy retrofits beyond 2026, by providing an evidence base of low-risk projects that meet repayments and thereby building confidence in the lending market. This will signal to the banking sector new sustainable business opportunities associated with retrofit and the transition to a low carbon economy. The cost of reducing the interest rate to 0% would be significant and may result in distortions to the Irish financial landscape.

Those most at risk of energy poverty can continue to avail of fully-funded energy upgrades under the Warmer Homes Scheme (WHS), which is available to owner-occupied homes built before 2006 where the household meets the Department of Social Protection (DSP)-payment related eligibility criteria. The WHS aims to improve the energy efficiency and warmth of these homes. Homeowners above the eligibility threshold for this Scheme can avail of the range of other SEAI supports as well as the Home Energy Upgrade Loan Scheme for energy efficiency upgrades.

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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130. To ask the Minister for Communications, Climate Action and Environment the estimated annual cost of a scheme (details supplied). [40868/24]

Eamon Ryan (Dublin Bay South, Green Party)
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The Warmth and Wellbeing pilot scheme was an interdepartmental and inter-agency project led by my Department, in collaboration with the Department of Health (DoH), the Sustainable Energy Authority of Ireland (SEAI) and the Health Service Executive (HSE). The project was established to produce research on how extensive energy efficiency upgrades to homes can improve the health and wellbeing of people living with chronic respiratory conditions.

The London School of Hygiene and Tropical Medicine (LSHTM) were recruited to carry out independent analysis of the health impacts. Participants’ health and wellbeing was assessed and tracked over a 3-year period following their upgrade. The pilot provided fully funded upgrades to 1,600 homes including attic and wall insulation, window and door replacement and heating system upgrades where needed.

The research shows that retrofits have resulted in measured improved comfort in the homes as well as improved health and well-being scores across multiple dimensions.

Further, the project created very strong working relationships and policy understanding between my Department, SEAI and other Government Departments and agencies which were reflected in the practical and effective implementation structures used, ensuring ‘cross Government cooperation’. These relationships have supported the development of the Energy Poverty Action Plan and the establishment of the Energy Poverty Steering Group.

The scheme was also featured in a report by the World Green Building Council as an example of international best practice in starting a renovation wave.

The final report for the Scheme was published by Government on the 18 July 2024 and can be found here: www.gov.ie/en/publication/191db-warmth-and-wellbeing-scheme/.

Key elements of the pilot project have been mainstreamed into our national energy poverty retrofit scheme – the Warmer Homes scheme. Working with vulnerable homeowners has allowed my Department and SEAI to improve the scheme for everyone, keeping the beneficiaries at the forefront of the process. Therefore, there are no plans to reinstate the Warmth and Wellbeing pilot as a standalone scheme.

Budget 2025 includes record funding of €469 million from the Carbon Tax for SEAI residential and community energy upgrades, including the Solar PV (photovoltaic) Scheme. The carbon tax funding will be supplemented by an increased allocation from the European Regional Development Fund (ERDF) that will increase the Warmer Homes Scheme budget to €240 million. The budget represents a 10-fold increase over the spend on the Warmer Homes Scheme during the first year of this Government.