Heat-pump retrofit costs
Deputy Ó Muirí says heat pumps are too expensive for many older homeowners undertaking retrofits, despite their prevalence in new homes. The Tánaiste agrees that grant schemes need flexibility so people can adopt suitable measures incrementally.
I appreciate that. I am just not going to let the comment go unchallenged.
I welcome the additional money allocated to the SEAI this year. It has a huge part to play in getting our housing stock retrofitted from a climate perspective, but there is something of an issue with heat pumps. Heat pumps appear to be the nirvana when it comes to retrofitting. For older citizens in particular, they are expensive, so it is really difficult for them to change to them. It is easy when it comes to new stock; 99% of new houses built this year have heat pumps installed, and that is fine. For retired people in their later years who live in older houses, however, the cost of a heat pump is prohibitive, grant or no grant. Will the Tánaiste ask the Department and SEAI to examine this issue and see whether there are shallower retrofit measures that we can identify, roll out and support in order that the houses in question can gain some benefit from retrofitting?
Comment on this
Deputy Ó Muirí is right. I thank him for highlighting this. It is an issue I have been raising personally for a while. We all want to do our bit for the climate – of course we do, and we are living through a climate emergency – but we also have to recognise that while quite a few people in this country would like to retrofit some element of their homes, they may not be in a position to do everything at once. We have to show flexibility in the context of the grants, particularly for those who are older and do not necessarily want the whole house uprooted but who are happy to take some measures that will help to keep them warm in their own homes and reduce their energy bills, and also allow them to do their bit for the planet.
As the Deputy rightly said, we have increased the budget for retrofitting and climate measures. We will be working through all the detail of what that will mean in terms of numbers of home-energy upgrades, and the relevant announcement will be made as part of the REV later this year. As the Deputy knows, we reduced the VAT rate for heat pumps to 9% from 1 January, which has helped somewhat when it comes to affordability for people switching to efficient electric heating. The Department and SEAI keep their grant schemes, including the terms and conditions, eligibility criteria and rates, under review. I will ask that they reflect on what the Deputy has suggested.