Residential Energy Efficiency

Ireland’s homes are responsible for one quarter of our overall energy use and 10% of our overall greenhouse gas (GHG) emissions. Reducing the amount of energy and fossil fuels we use in our homes is an important part of the government’s Climate Action Plan. Ireland also has targets under EU legislation to improve our energy efficiency by 2020 and 2030. These targets are set out in the National Energy Efficiency Action Plan (NEEAP), the draft Ireland’s National Energy and Climate Plan 2021-2030 and the Long Term Renovation Strategy. The targets include taking action to help lower income households who may be at risk of energy poverty.

The Climate Action Plan sets a target to reduce greenhouse gas emissions from the residential sector from 6 Mt CO2 in 2017 to 3-4MT CO2 in 2030.

To help achieve this target a Retrofit Taskforce with cross-departmental and agency membership has been established. An essential part of the Taskforce’s work will be designing a national retrofit delivery model that groups homes together to achieve economies of scale and provides smart financing options and easy pay back methods.

While the new delivery model is under development there will continue to be a range of home and community energy grants available. Grants are administered by the Sustainable Energy Authority of Ireland (SEAI) and can assist homeowners in upgrading the energy efficiency of their properties, including switching to new heating systems. These include free upgrades for low income households and fixed grants for those who can invest some of their own money.

The Community Energy Grant Scheme funds community based partnerships to improve the energy efficiency of the buildings in their area. Upgrades can take place across all building types – homes (including those at risk of energy poverty), community facilities and businesses. These upgrades deliver multiple benefits including improved comfort, health and wellbeing.

The Home Energy Upgrade Loan Scheme helps homeowners pay for energy upgrades that make their homes warmer, healthier and more comfortable. It was developed in 2024 by the Department of Climate, Energy and the Environment, in conjunction with the Department of Finance, the SBCI, the SEAI and the European Investment Bank Group.

The Scheme is available nationwide, and homeowners can borrow from €5,000 to €75,000 on an unsecured basis for a term of up to 10 years. Rates start from 2.99% depending on the finance provider.

To avail of the low-cost loans, the upgrade projects musts be supported by an SEAI grant and be projected to achieve a minimum 20% improvement in the energy performance (BER) of the building.

Homeowners apply for the loans through the participating finance providers – PTSB, AIB, Bank of Ireland Avant Money (in partnership with An Post Money) and seven credit unions from the Irish League of Credit Unions.

A Building Energy Rating (BER) is an energy rating label with an accompanying advisory report for homes. The rating is on an A to G scale. A-rated homes are the most energy efficient and will tend to have the lowest energy bills. A BER makes the energy performance of a home visible to prospective buyers and tenants, allowing them to take energy performance into consideration in their purchase or rental decision.

The BER Advisory Report identifies potential energy performance home improvements that could lead to better comfort levels, reduced energy use and costs.

The Climate Action Plan contains actions for maximising the potential for the BER system to help householders decarbonise their building. These include initiatives to increase the number of homes with BER Certs and implementation of the newly designed BER advisory report to guide and support householders to improve the energy efficiency and BER rating of their home to achieve the multiple resulting benefits.

Energy poverty can be described as a situation whereby a household is unable to attain an acceptable standard of warmth and energy services in the home at an affordable cost. Households experience energy poverty for a variety of reasons, including: low income, poor insulations standards, relatively inefficient heating system and personal circumstances that result in spending long periods confined in the home, for example old-age, disability, poor-health and unemployment.

In Ireland, households are currently defined as energy poor if they spend more than 10% of their disposable income on energy costs in any one year, in severe energy poverty if spending more than 15%, and in extreme energy poverty if spending 20% or more.

The Strategy to Combat Energy Poverty contained actions to be taken to alleviate the burden of energy poverty on the most vulnerable in society. The strategy maintains the objective that everybody should be able to afford to adequately heat and power their home. Addressing energy poverty through the improvement of the energy efficiency of the home can improve the comfort, health outcomes and energy costs for those householders. A review of the Strategy is due to take place in 2020.

Fuel Allowance is a means-tested payment to help with the cost of heating your home during the winter months. It is paid to people who are receiving a long-term (15 months or more) social welfare payment.

The Commission for Regulation of Utilities (CRU) can inform you about your rights as a customer and offers advice for paying energy bills, disconnections and energy saving measures.