Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
LAST UPDATE | 9 Feb 2022
THE GOVERNMENT YESTERDAY announced a new scheme aimed to make it easier and cheaper for homes to become more energy-efficient.
The retrofitting measures covered in the plan can help make bills more affordable in the long run, but ordinarily they can be very expensive in terms of up-front costs.
Let’s take a closer look at the new National Home Energy Upgrade Scheme.
Reducing emissions and cost
The new scheme is basically aimed to make it simpler and more affordable for people to retrofit their homes. The scheme will be open to applications next month.
Retrofitting homes means making energy-efficient changes to existing buildings through measures like installing heat pumps, insulation and solar panels.
Retrofitting is one of the main ways the government intends to reduce emissions from the residential sector in the coming decades.
Under the government’s Climate Action Plan, the country must reduce overall greenhouse gas emissions by 51% by 2030 and achieve net-zero emissions by 2050.
500,000 homes will be retrofitted and 400,000 heat pumps will be installed into Irish homes by 2030 under government plans.
Retrofitting has two main benefits – it minimises the emission output from homes and saves households money on their heating and electricity bills.
But this all comes at a cost and the new government scheme is aimed at decreasing the upfront expense for households.
Under the plans people will be able to avail of grants to cover 46-51% of the cost of a deep retrofit.
Current grants available cover around 30-35% of costs. Around 80% of the cost of attic and cavity wall insultation will also be covered under the grant.
Grants of up to €25,000 will be offered for private homes to cover half the costs of a deep retrofit. For example, the grant for heat pumps has increased from €3,500 to €6,500 and the rate for external wall insulation has increased from €6,000 to €8,000 for a detached house.
Each grant is worth a different amount for different types of homes and depending on the retrofit.
A residential retrofit loan guarantee scheme will be introduced in the third quarter of this year to help households cover additional retrofitting costs.
These low-cost loans are being worked on between departments and the Sustainable Energy Authority of Ireland (SEAI). It’s understood to be the first loan-guarantee scheme in place in the residential sector.
Affordability
Some experts have said the plan does not go far enough for lower income households.
Michelle Murphy Research and Policy Analyst at Social Justice Ireland, told The Journal that many people will not have tens of thousands to spend on a deep retrofit.
“The problem then is that it almost becomes an upper redistribution of resources,” Murphy said.
The funding for retrofitting comes from all contributions to the public purse. If the only people who can take advantage of the grant at that level are people on higher incomes but everyone is subsidising it – particularly people in low incomes – it’s basically functioning as an upward wealth transfer.
“People on lower incomes aren’t getting the advantage but are still paying increased carbon taxes as they do up and their homes are still losing heat.”
In terms of minor works such as insulating attics, Murphy said the lesser savings from these measures compared to a deep retrofit are not comparable.
Murphy said Social Justice Ireland would like to see a State-led retrofitting scheme, with loans provided by the government.
When questioned at a press conference yesterday evening about concerns that the new scheme won’t be accessible for lower income households, Eamon Ryan said: “Achieving this goal of every single Irish home to be fit to live in, I think is the best social project of our time, the most important social project of our time.”
For renters, Labour housing spokesperson Rebecca Moynihan said a no-eviction order should be put in place for any home in receipt of the retrofitting grant.
“Anyone in receipt of a retrofit loan cannot be allowed to use this work as a grounds for eviction or to raise rents,” the senator said in a statement.
Jobs
Politicians have been keen to highlight that the scheme will benefit the construction industry.
Tánaiste Leo Varadkar said this scheme will be good for creating jobs and for improving public health.
He also said it is sending a message of “certainty” to construction that there will be a constant stream of retrofitting work in the years to come.
Varadkar said people trained in the construction sector can learn how to carry out retrofitting work in a matter of weeks.
Environment and Climate Minister Eamon Ryan said small Irish businesses will be “competing with each other” to get this business.
Officials believe the scheme will have a positive impact in rural areas and for smaller scale contractors.
Cost certainty for households
To apply for these grants, householders will contact a ‘one stop shop’ company through a list that will be available on the SEAI website in the coming weeks.
This company will complete the job from start to finish, again intended to simplify the process for homeowners. These ‘one stop shop’ companies will be taking on applications through the grant scheme in the coming weeks.
Electric Ireland Superhomes is one of around a dozen of these organisations in the country focusing specifically on deep retrofits.
Managing director Stephen O’Connor told The Journal that there is an acceptance that deep retrofitting is “the real way now to tackle the poor energy performance of domestic buildings”.
He said around 1.5 million homes need “serious work” and any home built before 2006 needs retrofitting.
“There’s also a growing acceptance that the best way to do it is not those small individual single measures, but to do it right once and do the whole house,” he said.
Previously, under the SEAI scheme, homeowners had to pay the full cost up front and then claim back the grant portion.
Under this scheme the consumer will only pay their portion and the provider will handle the grant application and will claim the money from the scheme, which O’Connor said will make for a smoother process for householders.
Applications are made through the SEAI. The organisation said this morning that it is experiencing high call volumes.
Contains reporting by Michelle Hennessy.
To embed this post, copy the code below on your site
Ok, for an air source heat pump to work properly in a cold country like Ireland you need a really well insulated house, ideally a new build. To retro fit and work properly your looking at approx €30k for insulation, €30k for new windows and doors. €12-15k to buy and install a heat pump. And you’ll get up to €25k back. How many people in old house have a spare €50-70k burning a hole in their pocket? And how long for the recoup the investment?
@Christopher Byrne: 30k for new windows ? 30 k for insulation ? What are you retrofitting a castle ?
@Johnny Honest: I’ve a standard semi d and replacing the windows with triple glazed Rationel aluclad windows cost €27K three or four years back and we were recently quoted €23K for external insulation and attic insulation upgrade so his figures sound about right.
@Johnny Honest: It’s probably a mica house in Donegal
@Christopher Byrne: as for all the councils not allowing 2 storey homes, so lots of dormer homes out there, absolute nightmare to retrofit and essentially roof needs to come of, or internal ceilings pulled down
@Sean: A standard semi d has 6 to 8 windows and 2 doors. If you paid 27 thousand you were very much ripped off.
@Johnny Honest: Was thinking the same
@Johnny Honest: No, a standard Irish country bungalo of 195m2. Those are the costs bud. Rip off Ireland. Sure look at Dermo on Room to Improve. Lashes on a glass box for circa €200k. Housing estate as someone mentioned will be a disaster to retrofit and all those noisy heatpump fans whirling away…No thanks
@Sean: how many windows and doors did that include? To get a b2 rating, double glazed A rated windows would suffice. Apart from the fact you picked the dearest windows on the market, your price seems extortionate
@Christopher Byrne: 195 m2 is twice the size of a standard Irish house. Get with reality
@Christopher Byrne: I live in a semi detached house. It cost €600 with a grant to pump the walls, additional insulation in the attic cost €500 with a grant, we also upgraded got a new boiler with zoned heating controls (Hive hub) for €2300 with a grant and recent we €1800 of a grant for a 3kWh heating solar system which cost €4800 after the grant.
As a result we have had a BER assessment after each upgrade and it brought the home from a C3 to and A3 rating over the course of various upgrades carried out over five years.
The house was built in 2005.
@Christopher Byrne: I live in a semi detached house. It cost €600 with a grant to pump the walls, additional insulation in the attic cost €500 with a grant, we also upgraded the boiler with zoned heating controls (Hive hub) for €2300 with a grant and recently we €1800 of a grant for a 3kWh solar system which cost €4800 after the grant.
As a result we have had a BER assessment after each upgrade and it brought the home from a C3 to and A3 rating over the course of various upgrades carried out over five years.
The house was built in 2005.
@Johnny Honest: check the price of stuff. I had a patio door replaced with a triple glazed one a few years ago and it was 3.5k hod knows what it would be now.
@ed w: seems expensive – I recently fitted a composite front door for a total cost of 1500
@ed w: I price this stuff everyday.
@Johnny Honest: okay I’ve checked my figures. The first invoice was 16.9K and was for ten windows and a porch door and that was in 2017. The second invoice for was for 5.9K abs was for a back door and French double doors in 2019. So closer to 23K in total. All triple glazed for both sound and insulation. Yes they are an expensive product but the quality is amazing compared to the likes of what you get from some of the other manufacturers. I’d also recommend Nordan and Carlson. Not too impressed with Munster but they are a lot cheaper.
@Johnny Honest: Had a quote for triple glazed windows that did just about everything, for a small bungalow. 16k was the figure involved.
@Fay Moynihan: Would it be that cheap if your house was built in the 50′s and has a suspended floor? Also it’s detached, so 4 walls need to be insulated
I contacted one of the one stop shops on the site a couple of months ago and was told it would be €500 plus VAT just to have them tell me what needs to be done on the house. Are they dropping that fee? Doubt it, probably see cost of jobs going through the roof now.
There should be a cap on the amount the contractor can charge,and what about the oap who are living on a PENSION, liveing in the cold for a long time to come
This is what actually needs to happen: “The Italian government is offering to pay back each homeowner 110 per cent of building costs to convert their existing home into an eco-friendly residence.” – https://www.euronews.com/green/2021/10/25/italy-pays-homeowners-110-of-costs-to-eco-proof-their-homes
My sister tried to retrofit her family home that she is renovating she couldn’t get anyone to do the fit and by the time she had spoken to someone the time limit on the grant was up!
This is going to be as BIG a rip off as the bankers that couldn’t count.
Unfortunately the house that need the upgrades can’t be afforded, even with the grant.
This grant system will only benefit the people who have the money in the first place.
But no doubt the solution the government will come with for every one, is to recommend everyone on the the bread line shop around for an expensive loan to pay for it…
I’ve $50….how far will that get me in my E rated apartment built in 2007?
@Aurelio Na Fodhla: probably down to the pub and back. If you walk
@Aurelio Na Fodhla: Buy a new Kettle Aurelio , at least you can have a hot cup of tea, the new scheme is for the better off not meant for those with families, the poor or the old, 25,000 enough to make you smile, if you’re over 65 yrs then the loan will out live you.
They living in another world I haven’t 25 grand lying around and don’t think anyone like me has
My house was built in around 1900. I am doing an extension this summer and will have to insulate the stone and clay walls of the house, install a heat recovery systems and bring it from a E1 to B1 BER rating. Will I be aloud apply for the grant to pay for some of the work carried out? It seems that only this ‘one stop shop’ can be used from start to finish, I have a builder lined up already will this grant be any good for me.
@Francis: I’ll be doing similar next year. My house built around the same time. What insulation will you be using for the walls? I haven’t looked into it yet so if you have any advice I’d appreciate it.
@Johnny BGood: I’ll probably just use standard insulated slabs, but we’ll have to seal the interior of the wall as the rain water soaks through in winter. When I bought my house, one room had been started with a black sealant painted on the external wall and then an insulated slab over that and it’s still good 6 years later. The outside of my house has exposed original stone so would have to plaster the whole house to stop the water issue but that would ruin the appearance of the house. Otherwise I’d insulate the outside and keep as much room inside as possible.
@Francis: Im doing the same, have a house from 1900 – with internal board insulation – its rated D1. Got a quote to External Insulate the full house a couple years back for in around 20k. If I got half that back it would be good value. The only thing is im not sure if I would get to B2 without changing windows, this would be a big cost
@Derek McDonnell: if you have the internal walls done already, I’d spend the 20k+ on windows over external insulation. It would probably give a great reward for you.
‘The National Retrofit Plan commits to the establishment of a cross-departmental steering group, chaired by the Department of the Environment, Climate and Communications. This Group will be established in Q1 2022 and will oversee and monitor progress against our national targets and develop new initiatives as required.’
Our just move statics around like every ‘cross-departmental steering group’ in housing has done since 2016.
Great money spinner for registered installers who managed to get on the list. No doubt it’s a hard list to get on to, and there are no grants at all in Ireland for self install.
What if you are someone really good with tools, who knows how to do those works? Will the grant have a “material only” application level? Just as explanation, I’m from Germany, where we have really cold winters and know how to isolate houses. Now me and my partner are buying an old house here in Ireland and plan to do all the renovation ourselves. We already planned to upgrade to insulation and the work and it would be ridiculous if we’d need to hire someone for this.
@Claudia Varell: No. Qualified installers only
@Claudia Varell: register as an installer.
You have to go for a registered installer who all work as a cartel and quote exorbitant costs and quickly swallow up any grants available. This scheme will not benefit the householder only the companies lucky enough to be on the approved list.
Sure jus go on the dole you get it all for free
I think the governments missing the point. People who are struggling to pay bills don’t have €10000 in savings to put towards a retrofit.
What has happened to the full seai grant that was available to up grade your home with external insulation etc, etc
have your say