2025-12-18

We are moving on to a grouping of Questions Nos. 108, 112 and 119.

I understood it was Questions Nos. 98, 102 and 109.

Can I clarify that with the clerk that it is the grouping of Questions Nos. 108, 112 and 119?

I am taking Question No. 108 on behalf of Deputy Louise O'Reilly.

Yes. The questions are in the names of Deputies O'Reilly, Séamus McGrath and Deputy Neville.

108. Deputy Louise O'Reilly asked the Minister for Climate, Energy and the Environment if he intends to implement a socially-just phase out action plan for the replacement of fossil fuels by sustainable energy sources; and if he will make a statement on the matter. [73018/25]

112. Deputy Séamus McGrath asked the Minister for Climate, Energy and the Environment his plans to reform the home energy grants. [73000/25]

119. Deputy Joe Neville asked the Minister for Climate, Energy and the Environment the steps his Department will take to widen the number of people who have access to the SEAI grants for home improvement; and if he will make a statement on the matter. [73234/25]

We wish to ask the Minister for Climate, Energy and the Environment if he intends to implement a socially just phase-out action plan for the replacement of fossil fuels by sustainable energy sources, and if he would make a statement on the matter please.

Perhaps the Leas-Cheann Comhairle will give me guidance as to which of the three have an opportunity now or what way does he want it.

I could not give the Minister of State guidance, for God's sake. You would not take it anyway.

That disappoints me greatly as you have been a mentor of mine for many years here and I depend on your guidance in many other fora as well. I propose to take Questions Nos. 108, 112 and 119. The programme for Government commits to ramping up the achievement of retrofit targets through continued delivery of the Sustainable Energy Authority of Ireland's residential and community energy upgrade schemes. This includes revising and improving the provision of grants and financing models for homeowners who wish to retrofit to enhance energy efficiency and reduce costs, supporting group retrofitting projects and area-based approaches to retrofitting, targeting older homes still using oil to switch to renewable heating systems and considering the use of sustainable bioliquids to reduce emissions from existing home boilers where deep retrofits are not possible in the short term. These commitments are framing the work under way by my Department on continued delivery and development of the SEAI's residential and community energy upgrade schemes and the development of a heat policy statement and a roadmap to phase out fossil fuel heating systems. The SEAI has a number of schemes in place to support homeowners to upgrade their properties and move to renewable heating systems, thereby allowing homeowners to choose the best home upgrade option to suit their particular needs. These include a number of part-funded schemes and the fully funded warmer homes scheme. Ensuring fairness to all and supporting a just transition are key principles underpinning the National Retrofit Plan. As an example of delivering on this, over the period 2022 to 2024, 64% of the total Government spend on residential and community retrofitting across our Department and the Department of Housing, Local Government and Heritage's schemes was invested in upgrading home energy performance for households at risk of energy poverty across privately owned, local authority and approved housing body homes. The Department continues to build on the progress achieved in recent years. Since 2019 there has been a record level of about €1.6 billion invested in SEAI schemes to support almost 240,000 home energy upgrades, including over 81,000 to BER B2, 18,000 heat pump installations and over 32,000 fully-funded upgrades for households at risk of energy poverty under the warmer homes scheme, which many of us are familiar with through the representations we get in our constituencies. In addition, the Department funded a further 14,300 local authority upgrades, including over 7,250 heat pumps, between 2019 to 2024. Changes introduced to the SEAI schemes in recent years aimed at increasing the number of homes retrofitted as part of the Government's retrofitting schemes include: enhanced SEAI grant schemes, including expanded eligibility and higher grants; simplified application processes with faster approvals and a greater focus on heat pumps; an increased number of one-stop shops - there were 24 registered at the start of 2025 and a further two were added this year, bringing the overall total to 26 at the end of September 2025; a reformed warmer homes scheme for homeowners in energy poverty with expanded eligibility, increased depth of retrofit, a prioritisation of the worst performing homes and a higher number of homes supported; enhanced supports for retrofitting apartment buildings and flat complexes; new supports for area-based retrofit projects for mixed-ownership estates aimed at encouraging homeowners, regardless of requirements or means, to get a retrofit; a new pilot scheme to support the retrofitting of traditionally built homes; two pilot schemes aimed at informing approaches to increase the number of heat pumps installed; the new home energy upgrade loan scheme, launched last year with new lenders joining in 2025, is now enabling homeowners to avail of retrofit loans with interest rates as low as 2.99%; a tax incentive to encourage small-scale landlords to undertake retrofitting works while the tenant remains in situ; a reduction in the VAT rate for heat pumps to 9% and a 0% rate for solar panels - we all see how that has expanded the amount of solar energy that is now being captured on rooftops.; expanded obligations on energy companies to support homeowners and energy poor households to reduce energy use; measures to increase the number of workers with retrofit skills; and a procurement process to establish a new €1.2 billion contractor panel for the warmer homes scheme to be in place in by quarter 2 next year. This will support continued growth with a focus on scale, quality and output under the scheme. Budget 2026 has provided record funding of €558 million for SEAI residential and community energy upgrade schemes next year. This is an increase of almost €89 million on the budget 2025 allocation. This funding is expected to be further supplemented with additional funding, such as an allocation from the European Regional Development Fund, which will provide for an increase in the allocation for the warmer home scheme. These allocations will be published as part of the Revised Estimates Volume later. This allocation will support even more home energy upgrades to make homes warmer, healthier and more comfortable, with lower emissions and lower bills. Increasing the uptake of energy efficiency upgrades and measures among homeowners is a key priority for our Department and as such, our officials, in partnership with their counterparts in the SEAI, continue to work to deliver in line with the National Retrofit Plan and the programme for Government commitments.

It is really important we get a just transition. The Minister of State will recall how Sinn Féin tried to get a proper definition of that when we were working on the 2021 climate Act and he and I were on the climate committee. As we move away from fossil fuels and transition to a greener economy, we have to ensure we do not leave anybody behind. The SEAI grants have been made available to people for them to retrofit their homes but it has been shown that tenants and the Travelling community cannot do so. It is not working for them or for people living in older homes. Clare O'Connor from Friends of the Earth was before the climate committee last week. She said those living in the least efficient homes cannot afford to upgrade them. What specific accommodation will the Government make to ensure households such as these are not left behind as we transition to a sustainable economy?

I thank the Minister of State for his response. I think we all agree reducing energy consumption at home is a critically important part of reducing our overall carbon output as a nation and of course reducing the costs for households of their energy use. Many households find the grants to be quite rigid and it is a case of perfection being the enemy of the good. For example, if a household wants to upgrade their windows and doors they have to undertake a full energy upgrade under the one-stop shop system. That can be very inaccessible for many households due to the cost involved, so I ask these grants be reformed in such a way they become more accessible and user friendly. I welcome the measures announced in the simplified process, a reduce loan cost and so on. They are all very important but especially with windows and doors, which are critical parts of reducing energy consumption in a household, the grants need to be looked at so there is not a requirement for a full-blown energy upgrade to avail of them.

Both Deputies show regular interest in this and have spoken on it in the past. The point about not leaving anybody behind is really important and it has been the focus. Deputy Cronin and I, and her party, are aligned on lots of issues. I sat with Deputy Stanley, a former member of her party, on that committee for years and certainly Sinn Féin was very committed to the transition, but we disagreed ultimately on how to pay for it. We sided with the idea of the carbon tax, the hypothecation of that fund and using that to assist people in moving forward. Sinn Féin had a different view but nonetheless recognised the importance of ensuring nobody was left behind. I felt at the time, and still do, that the carbon charge was a way of discouraging the long-term use of fossil fuels and taking that as a methodology to assist exactly the people the Deputy spoke about. What I outlined to her indicates, particularly with the warmer homes scheme, what we have done for people with low incomes, namely, classifying them as in the energy poverty category and targeting that. The issue Deputy McGrath described has been raised with me, the Minister and the Minister of State, Deputy Dillon, on a very regular basis. Deputy McGrath and others have mentioned it in the House. The Minister is very cognisant of that and my understanding is he is working towards bringing some reforms in this area. We would all like to do a deep retrofit that would get us in line. Most of us cannot afford it. We are paying our mortgages or are working our way through that. Windows and doors and a little bit of insulation can have a massive impact on emissions from homes, on reducing the cost of energy and on reducing the burden on society generally from the emissions and the generation of electricity and the difficulties around that. I will certainly take that point back to the Minister but he has already begun a process there.

The European Commission's 2025 country specific report stated that energy poverty has increased in Ireland and we now have the third highest household or consumer electricity prices in the EU when the add-ons are included. Much of that is down to our reliance on fossil fuels, which makes us susceptible to global price shocks beyond our control. Some 300,000 people are in energy arrears at the moment, with price hikes coming down the road with the PR6. The Minister of State mentioned carbon taxes. It was shown at the Committee of Public Accounts that carbon taxes are not being ring-fenced as was promised. We are meant to be climate neutral by 2050. The Climate Change Advisory Council said that by 2039 we should not be reliant on fossil fuels. How does the Government envision a complete phase-out of fossil fuels in Ireland? We are not getting there.

I call Deputy Séamus McGrath.

I thank the Deputy-----

No, the Minister of State should hold on.

There he goes again.

I am eager.

He is very anxious.

I am very anxious. I am nervous.

I thank the Leas-Cheann Comhairle. I thank the Minister of State for his response. As I said earlier, the importance of reducing energy consumption for domestic households is critical, for carbon achievements and to reduce costs for households and our dependence on international energy importation. That is also an important part. Therefore, I welcome the reforms the Minister of State announced that are in the pipeline for these home energy grants. They need to be less rigid and become more accessible and the requirement for full-blown upgrades needs to be changed. It is critical that any improvement to home energy efficiency should be welcomed. We should not be putting unnecessary requirements, conditions and criteria in place, which can prevent people from accessing these grants. I welcome that and I urge the Minister of State to redouble his efforts to bring about these reforms as soon as possible so the grants are accessible to households and so we subsidise and welcome any improvement to the energy efficiency of homes.

Deputy Cronin highlighted the significant cost of energy and the impact it is having on households. We have certainly seen that. The Government has taken action, as the Deputy will be aware, by increasing the fuel allowance from the beginning of the year. We reduced the VAT, which is a help in addressing the burden, but we have to get to the core cost. I answered a question earlier about the efforts that have to be made in terms of the wholesale energy markets and the price of gas. The Commission for Regulation of Utilities, CRU, on the direction of the Minister, is carrying out an investigation to establish whether there are issues with the market and whether there is potential for failures in the market. The International Energy Agency, IEA, indicated that the difference between the wholesale and retail cost is considerable and widening, particularly in the gas market and that sets energy prices generally. We are therefore looking at it from that perspective. However, the long-term approach is to try to ensure we move away from fossil fuels altogether and reduce the amount of energy needed in homes. I have already outlined the kind of approach we are taking to ensure people who are not in a position to do that upgrade get the State's support. I thank Deputy McGrath for his comments. It is twofold. It is about having people in healthier, warmer homes that are less dependent on fossil fuels or even on renewable energy. If we can make the homes lose less energy, they will use less electricity and there will be less cost regardless of whether the energy is clean or otherwise. That is why the Minister, Deputy O'Brien, takes the view that this can be done incrementally and we can make progress. It cannot be that people have to do everything at once, because that is a turn-off for people financially. When they get to other side, having paid their mortgage, they often do not want to take on more debt so we will continue with that.