Minister O’Brien commented:

William Walsh, chief executive of SEAI, said:

From 3 February

Uplift for existing grants for cavity wall insulation and attic insulation*

In 2022, higher grants were introduced as energy affordability measures, focused on homeowners who are not eligible for energy-poor grants. Recognising that costs have risen since then, grant levels for cavity wall insulation and attic insulation will be increased. These higher fixed grants will substantially reduce costs for homeowners.

Heat Pump System Grants*

The upfront cost of heat pumps, and the additional cost of potentially having to replace the entire heating system, may be a barrier to some homeowners seeking to adopt heat pumps. To reduce the costs associated with a whole house heating system upgrade, and to accelerate the uptake of heat pumps, a fixed-amount grant for installing a heat pump system will be introduced. This grant encompasses the existing €6,500 for the heat pump, €2,000 for upgrading radiators and pipework and a new renewable heating bonus of €4,000. The new maximum grant of €12,500 will apply to applications already in train with the SEAI (and not yet processed for payment).

There will also be a new high temperature heat pump pilot scheme to test the suitability of that emerging technology in Irish homes. The pilot will evaluate performance of the technology and ensure that actual running costs remain affordable and comparable to pre-heat-pump fossil fuel heating costs.

From 2 March

Windows and Doors (grants available at a building fabric standard*)

A new grant will be introduced for the installation of energy-efficient windows and doors (to replace poorly performing windows and doors) for homes where the building fabric will meet or already meets a specified minimum performance standard. Many homes will already meet this standard. For others, they may also need to fit attic or wall insulation – measures for which generous grants are already available. Combined with attic and wall insulation supports, grants for windows and doors will bring increased levels of comfort (as well as bringing a significant number of homes to heat pump readiness).

Attic Insulation for First Time Buyers*

To enable First Time Buyers of existing homes to get on the energy upgrade journey – quickly and at minimal cost – a specific grant for attic insulation for these new homeowners will be introduced. In fact, First Time Buyers will be able to avail of a higher fixed grant for attic insulation than would otherwise be the case. In many cases the grant amount will cover most or even all the total cost. This will support First Time Buyers who purchase an existing property and might not be in a financial position to progress to undertake a complete energy upgrade (that is, a deep retrofit).

‘Second Wall’ measure*

Many homeowners have previously availed of a grant for cavity or internal wall insulation. These homeowners may want to further improve the level of wall insulation – to make their homes even warmer and cheaper to heat (and to make their homes heat pump ready). At present, these homeowners are precluded from receiving a grant for a second wall measure (under Better Energy Homes). From 2 March 2026, they can apply for a grant for a second wall measure (in line with the terms and conditions).

New and enhanced grants for homeowners on Qualifying Welfare Payments

To accelerate the uptake of insulation measures for those who may be at risk of energy poverty, and to make a number of lower cost and effective measures easier to access more quickly , including for those who may already be on the waiting list of the Warmer Homes Scheme, a higher fixed-amount grant for attic and cavity insulation will be introduced from 2 March for homeowners who are on qualifying welfare payments – aligned with Warmer Home Scheme eligibility requirements. This will give qualifying homeowners the option to select these individual energy upgrades and avail of the higher fixed grant amount. In many cases, the grant amount will cover most or even all the total cost. Where relevant, availing of these new grants will not affect an applicant’s place on the waiting list for other measures (under the Warmer Homes Scheme).

Additional measures to promote more area-based retrofitting and support vulnerable households

Local authority homes

• The government supports the retrofitting of local authority homes through the Department of Housing, Local Government and Heritage’s Local Authority Energy Efficiency Retrofit Programme, focusing on deep retrofits for warmer, cheaper-to-heat, and more comfortable housing, with funding supporting insulation, windows, and renewable heating systems such as heat pumps.
• Recognising that there is a cohort of local authority homes that could still benefit from shallow upgrade measures, local authorities will be allowed to access Better Energy Homes grants for attic and cavity wall insulation and heating controls. These upgrades would be delivered as well as the continued delivery of their existing deeper retrofit programme, which is funded by the Department of Housing, Local Government and Heritage.

Approved Housing Bodies

• It is proposed to increase the grant rate available to Approved Housing Bodies (AHBs) to provide additional support to them to upgrade their worst performing homes. This will also support the upgrade of multi-unit developments in Approved Housing Body ownership, which are a particularly difficult segment of the market to retrofit.
• This proposal will also increase the grant rate provided to energy poor households under the Community Energy Grant (CEG) Scheme, ensuring no homes are left behind in area-based projects.
• Grant amounts for AHB homes under the National Home Energy Upgrade Scheme (NHEUS) and CEG will be increased to around 75% of the overall cost and for fuel poor homes to around 80% of the overall cost of upgrade. Together with the support available from obligated parties under the EEOS (Energy Efficiency Obligation Scheme) this could provide funding in excess of 90% of the cost of projects for AHBs. Detail on the technical requirements and final terms and conditions of the scheme will be made available later in Quarter 1.

*These are new or additional measures, which will be accessed under the SEAI’s (existing) Better Energy Homes Scheme. Between 2019 and the end of 2025, the government has invested €1.67 billion to support upgrades in over 244,000 (almost a quarter of a million) homes.