GRANT SCHEMES for householders to make their homes more energy-efficient are to be abolished under a new national energy retrofit programme and replaced with discount-based incentives.
According to a consultation document circulated by the Department of Communications, Energy and Natural Resources, the programme would be more attractive as discounts would be available up front, rather than having to wait for retrospective grant payments.
Citing international experience that customers were more likely to undertake energy-saving measures under this scenario, it said the “more market-orientated approach” would also provide the State with greater value for money for every euro invested.
“The retrofit programme has the potential to be the most innovative, ambitious, energy-related initiative ever introduced in Ireland,” said the department, with the aim of saving 8,000 gigawatts of energy over the next 10 years.
This would be done by energy-efficient upgrades to one million residential, public and commercial buildings by 2020. It would develop an “innovative, competitive and sustainable market” for efficiency goods and services, and support the “smart green economy”.
“Packages of measures will be designed to suit each sector, with the net effect of making Ireland a cheaper, more competitive and environmentally friendly country,” it says, adding that this would also be a low-cost way of reducing carbon emissions.
“While homeowners will no longer receive a grant payment, they will receive an upfront discount that removes the need to fund the full cost of the measures to be installed,” the department said.
As a first step, Minister for Communications, Energy and Natural Resources Eamon Ryan will set out a three-year efficiency savings target to be achieved by all energy supply companies, such as the ESB and Bord Gáis.
They would be encouraged to make individual energy savings agreements with the Sustainable Energy Authority of Ireland. If any supplier failed to do so, the Minister would reserve the right to assign a mandatory target to that company.
The document warns that, if a supplier fails to meet the requirements, “an application will be made to the courts for an order directing the company to comply and/or a civil suit taken for damages or compensation for lost energy savings”.
It is proposed that around 75 per cent of a new energy-efficiency fund administered by the sustainable energy authority would be provided for measures aimed at improving energy efficiency in the domestic sector, of which 40 per cent would be earmarked for addressing energy poverty.
The remaining 25 per cent of the fund would go to the non-domestic sector, of which half would go to the public sector, with the aim of retrofitting 1,000 public buildings over the period to 2020, “thereby permanently reducing the State’s annual energy bills”.
While some customers would be in a position to pay upfront for the balance of the discounted cost of the installed measures, a large proportion would need to seek finance, and this would provide “a great opportunity” for banks and credit unions to develop their market share.
Financial support would be based on savings achieved relative to the building energy rating scale.
