Emer Currie (Dublin West, Fine Gael)
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127. To ask the Minister for Environment, Community and Local Government for an update on his efforts to fulfil the Programme for Government commitment to revise and improve the provision of grants and financing models for homeowners who wish to retrofit; and if he will make a statement on the matter. [45714/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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The Programme for Government 2025 commits to ramping up the achievement of 2030 targets set out under the Climate Action Plan and the National Retrofit Plan through continued delivery of the Sustainable Energy Authority of Ireland's (SEAI) residential and community energy upgrade schemes. This includes revising and improving the provision of grants and financing models for homeowners who wish to retrofit, enhancing energy efficiency and reducing costs; as well as the supporting group retrofitting projects and area-based approaches to retrofitting.

In this respect, my Department continues to build on the progress achieved in recent years. Since 2019, there has been a record level of almost €1.5 billion invested in SEAI schemes to support over 220,000 home energy upgrades, including almost 74,000 B2s and over 29,500 fully-funded upgrades for households at risk of energy poverty under the Warmer Homes Scheme.

This year, a record capital budget of over €550 million has been allocated to the SEAI residential and community energy upgrade schemes, including the Solar PV Scheme. This allocation will support over 64,500 home energy upgrades to make homes warmer, healthier and more comfortable, with lower emissions and lower bills.

In respect of the development and implementation of residential and community energy upgrade schemes, recent initiatives being implemented in 2025 also include:

• A new reduced VAT rate for heat pumps of 9% came into effect on 1 January 2025, making it more affordable for home-owners to switch to efficient electric heating. This is the lowest VAT rate allowable under the relevant EU Directive and works in conjunction with SEAI grants and the Government-backed low-cost retrofit loans available to improve affordability.
• Continued promotion and expansion of the Home Energy Upgrade Loan Scheme launched in mid 2024, enabling homeowners to avail of retrofit loans with interest rates as low as 2.99%. The number of lenders supporting the scheme increased from 3 in 2024 to 11 in the first half of 2025.
• The implementation of new pilots - the traditionally built homes pilot as well as pilots under the Community Energy Grant scheme to test or demonstrate new delivery models, including (i) enhanced supports for retrofitting apartment buildings and flat complexes and (ii) new supports for area-based retrofit projects for mixed-ownership estates aimed at encouraging homeowners, regardless of requirements or means, to get a retrofit.
• Implementation of technical changes, introduced in 2024, aimed at making it easier to access heat pump grants; as well as changes introduced to certain SEAI schemes to support homeowners availing of the Enhanced Defective Concrete Block Scheme.
• Continued expansion by the SEAI in respect of the number of One Stop Shops registered under the National Home Energy Upgrade Scheme from 18 (at end 2023) to currently 25, as well as a newly introduced change in the part funded schemes to facilitate One Stop Shops to deliver services under the Better Energy Homes Scheme.
• Further increase the number of Sustainable Energy Communities from 926 (at end 2024) to 1,032 at end-July 2025 – ahead of the yearly target of 100 SECs for 2025.
• Across the second half of 2025, development and roll out of (i) a comprehensive nationwide marketing and communications retrofit campaign; and (ii) comprehensive suite of educational tools to address the barriers regarding heat pumps with a new €4 million budget for 2025.