National Retrofit Scheme In Detail

Environmental Targets & Climate Planning in Ireland

National Retrofitting Scheme

The government has approved 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. The measures address barriers to undertaking energy upgrades (retrofits) reported by homeowners and those working in the industry. They also reflect the step-change needed – in pace and scale of delivery – to achieve a target of 500,000 home energy upgrades, to B2 Building Energy Rating (BER) standard, by 2030.

The changes represent an important step in delivery of the National Retrofit Plan, which identifies a range of measures aimed at driving demand for retrofit, expanding the size and capacity of the supply chain, as well as making retrofits more affordable.

The key measures include:

• A new National Home Energy Upgrade Scheme providing increased grant levels of up to 50% of the cost of a typical deep retrofit to a B2 BER standard (up from 30%-35% grants currently)
• One Stop Shops to offer a hassle-free, start-to-finish project management service, including access to financing, for home energy upgrades
• A significant increase in the number of free energy upgrades for those at risk of energy poverty (400 per month – up from an average of 177 per month in 2021)
• A special enhanced grant rate, equivalent to 80% of the typical cost, for attic and cavity wall insulation for all households, to urgently reduce energy use as part of the government’s response to current exceptionally high energy prices
• An Exchequer investment of €8 billion to 2030 will enable the supply chain to scale up, creating thousands of high quality jobs and delivering on this critical national objective
• The Schemes will be administered by the Sustainable Energy Authority of Ireland (SEAI). The increased grant supports and the significant ramping up of free energy upgrades for those at risk of energy poverty is supported by ring-fenced funds from the carbon tax.

Long-term funding commitment: Providing certainty for the home energy upgrade sector

Retrofitting our housing stock is a key element of the government’s plans for economic growth and development. The unprecedented €8 billion of National Development Plan funding (including €5 billion in carbon tax revenues) available to support residential upgrades (to 2030) will stimulate the creation of high-quality jobs throughout the country. It will also have a significant multiplier effect, supporting the development of associated supply chains. This will help to support a just transition to a carbon neutral society.

A total of €267 million (of which €202 million is carbon tax receipts) has been allocated for SEAI residential and community schemes in 2022. This investment will support almost 27,000 home energy upgrades, including over 8,600 homes to a BER of B2 (a near doubling of B2 output over 2021) and 4,800 free energy upgrades for households at risk of energy poverty.

In addition, €85 million funding has been provided by the Minister for Housing, Local Government and Heritage for the Local Authority Energy Efficiency Retrofit Programme. This investment is targeted to deliver 2,400 B2 (or equivalent cost optimal) upgrades this year.

Of the total government retrofit budget of €352 million, €203 million (58%) will be spent on dedicated energy poverty schemes and local authority retrofits.