€100 million grants for home energy upgrades in 2009

Minister for Communications, Energy and Natural Resources Eamon Ryan and Minister for the Environment, Heritage and Local Government John Gormley have launched a national energy saving programme designed to stimulate economic recovery. The three-strand insulation programme will cut heating bills for householders, reduce carbon emissions and create thousands of jobs both directly and indirectly over the course of 2009.

Minister Gormley said the new scheme “far exceeds anything in the Programme for Government,” which contained a commitment to spend €100million on home energy upgrade work over a five year period. “This plan is a welcome kick-start to the overhaul of our housing stock which Ireland badly needs,” he said. “Government assistance will not be confined to those in private homes but will include those in low income and social housing”.

Minister Ryan said: “If you see snow melting [on your roof] it’s a sure sign you’re wasting money. There is no better investment, no better return than retrofitting [energy efficiency in] your house.”

 In the context of the economic crisis, the government sees the private and public housing grant funds as an opportunity to redirect the Irish economy and refocus state and private investment onto a more sustainable path. The government hopes that the €100 million fund will unlock the huge potential of energy efficiency for the Irish economy. The energy efficiency stimulus programme will be divided into three packages, with the Department of Communications, Energy and Natural Resources taking a co-ordinating role.

 Announcing the investment energy minister Eamon Ryan said: “This programme will provide a welcome boost to the economy. Central to government spending in sustainable energy is to get the economy back on track. We need to replace the spending and lending that has contracted and re-focus our public and private investment.

 “Insulation makes homes warmer and more comfortable. Householders can expect to have their heating bills with reductions of €700 per annum. This means more money in their pockets. Construction workers will benefit from the thousands of jobs these measures we create. These will be jobs for trades-people throughout the country.

“In our current economic climate we need direction and radical thinking. This insulation programme saves energy, saves money and creates jobs. This is what our people, our homes and our economy need at this time,” he said.
Minister Ryan has credited the work of Construct Ireland editor Jeff Colley in helping to design the scheme. “Jeff Colley himself has played a pivotal and sometimes unseen role in relation to real green reform” he said. “My work in government as a Green minister has been greatly assisted by his work in relation to reform of the regulations for buildings and also on the Home Energy Saving scheme.

“Jeff was heavily involved in the design and the thinking behind this scheme. Such is the success of the pilot scheme that all political parties now vocally support widespread nationwide measures on insulation. This could not have occurred without Jeff’s vision, expertise and ability to secure industry buy-in”.

Minister Gormley emphasised the importance of the funding for low income earners and social housing to address the growing issue of fuel poverty: “The refurbishment of our local authority housing will also tackle the scourge of fuel poverty that exists in Ireland, particularly during cold weather,” he said. “Heating will not be wasted going out the roof our up the chimney. Reducing energy use and CO2 emissions will also help us meet our climate change targets”.

Clusters

Minister Ryan placed emphasis on the benefits of clusters of similar homes applying collectively: “If you can go in with the prospect of doing 50 or even 20 houses together the cost is a fraction of what it would be [for individual applications].”

He stressed that clusters of disparate yet similar homes – such as rural one-off dwellings with similar characteristics – could benefit from the cluster approach.

Minister Ryan stressed that local energy agencies and local authorities will also have a key role in delivering the scheme.

Professor Owen Lewis, the new CEO of Sustainable Energy Ireland (SEI) said that there is an urgent need for contractors interested in working on the scheme to contact SEI and register. “We need contractors to register quickly,” he said. Contractors and BER assessors interested in registering can find more information here.

Professor Lewis said that there had already been substantial public interest in the scheme prior to its launch, with over 3,000 interested homeowners already recorded by SEI.

ESCos

Minister Ryan expressed his confidence that a new model of energy service companies (ESCos) would emerge to help homeowners without the necessary capital to benefit from the scheme. The concept, described in depth in the January edition of Construct Ireland, involves ESCos being set up to finance, design, build and maintain energy saving measures into housing, recouping the money from benefiting homeowners by billing them the cost of the work over time, and in the case of utilities like ESB and Bord Gais, adding the cost to their energy bills. Minister Ryan said that he sees such a model coming from the utilities and from the building industry.

Green loans

Minister Ryan called on the banking sector to respond with targeted loan offerings to support energy saving work. “Banks have a real opportunity and role here.” The minister said that he had already been in discussions with four of the biggest Irish banks about the scheme, who had expressed considerable interest. He said that the scheme offered a good opportunity to the scheme, as the money saved by lowering energy bills would mean homeowners being in a better position to repay loans taken out to upgrade their homes.

Professor Lewis said that SEI was involved in discussions regarding package offerings for homeowners, containing a financing element. “Householders will have various options including financing,” he said.

Programme details
 
The programme will consist of a number of grant schemes. The individual schemes will be administered by Sustainable Energy Ireland and are as follows:
The Home Energy Saving scheme (middle income private homes)
The Warmer Homes Scheme (low income or for those on a social welfare allowance)

Home Energy Saving scheme application process

It is expected that the scheme will open for homeowner applications in March 2009. At that time, applications can be made through Sustainable Energy Ireland (SEI), online at www.sei.ie/hes or by post on forms which will be available on request by ringing 1890 927 000.
 
SEI is now accepting expressions of interest in participating in the scheme. Homeowners who have expressed an interest in the scheme will be advised when the formal application process is available.
 
After registering with SEI, homeowners can immediately arrange for a BER assessment to be carried out, if they wish, without awaiting grant approval. However, the grant for the BER will only be payable after upgrade measures and follow up BER are completed. Applicants must complete the formal application form and await written grant approval before having upgrade measures carried out.

Eligibility

The scheme is aimed at older houses that would not typically have the energy efficiency features of recently built homes. The scheme is open to all houses built prior to 2006.
 
Eligible measures

The table below sets out the eligible measures and the set grant amounts available. It also sets out the typical improvement in BER rating that could be expected from each individual measure, done in isolation. Note that in estimating the total potential BER improvement, if the full range of measures is installed, the potential BER improvements for each measure should not be added together. It also gives an estimate of the typical payback period for each measure, arising from energy saved.

Minimum investment

A minimum level of investment is required of householders to participate in the scheme. Householders must avail of measures (excluding BER) involving a minimum grant payment of €500 for a first application. This means that householders cannot avail of a grant for roof insulation or cavity wall insulation only. These low cost measures must be undertaken together or with another measure.
 
Heating controls and boilers

To avail of the €500 grant for heating controls, a homeowner must install a range of time, temperature and zone controls on their heating system and electric immersion water cylinder. This low cost measure can improve a home’s BER rating by up to 25 per cent, yet has a payback of only four to five years.

While heating controls can be added to an existing heating system, it is particularly attractive to any homeowner replacing their boiler to also install heating controls at that time. Under the Building Regulations 2008, anybody replacing an existing oil or gas boiler must install a condensing boiler with a minimum seasonal efficiency of 86 per cent. Condensing boilers with efficiencies of up to 98 per cent are available on the market. This additional efficiency can lead to significant savings. A grant of €200 towards the cost of these higher efficiency boilers is available to any homeowner who is also installing heating controls.
 
Wall insulation options

To insulate the walls of their home, owners may have a choice of cavity wall, internal or external insulation, depending on the construction of their home. Homeowners should seek professional advice on which option is most suitable for their home.
Where a house has a suitable cavity, then cavity wall insulation is the most economical investment. Where this is not possible the options are either internal dry lining or external insulation. Internal dry lining will ultimately reduce somewhat the internal habitable space of the home and may not be practical where there is decorative internal plasterwork. External wall insulation may prove preferable where a significant upgrade to the external facade is already envisaged. Both may result in additional works in order to reinstate electrical, plumbing and glazing fixtures. External insulation has the added benefit of reducing cold bridging, and can achieve substantial energy performance improvement without reducing internal habitable space, and without turning that space into a construction site for the duration of the work.

Building Energy Rating
 
A BER assessment is not required for participation in the scheme. However, a BER carried out prior to works can provide useful advice to a homeowner on the upgrade measures he or she needs to take to improve the home’s energy efficiency. A BER conducted after the measures are finished can establish the impact of the works and give the homeowner comfort regarding their investment.

To avail of the BER grant of €200, a homeowner must have a BER assessment conducted before and after works. Anybody wishing to secure the services of a registered BER assessor can find details at www.sei.ie/ber.
 
Contractors

SEI will be registering contractors for participation in the scheme on the basis of commitments to a range of terms and conditions, including specified competence and experience requirements, as well as specified tax and insurance criteria. Contractors should contact SEI on 1850-927000 or at This email address is being protected from spambots. You need JavaScript enabled to view it. for further details and to receive application forms. Alternatively, log onto www.sei.ie/hes .
 
The Warmer Homes Scheme
 
The Warmer Homes Scheme is part of the Low Income Housing Programme, administered by SEI. The Scheme was introduced in 2002 and provides funding, through community based organisations, to those on low income for the installation of energy efficiency measures in their homes. Already, up to 9,750 energy efficiency improvements have been made including upgrading the fabric of the building with attic insulation, cavity wall insulation, draught proofing the home and provision of lagging jackets. Homes that receive the full suite of available measures under the current scheme will have the potential to achieve energy savings of up to 50 per cent.
 
There are currently twenty community based organisations involved in the scheme. All homes will receive a “Keep Well, Keep Warm” booklet shortly and a website will be available. Applicants should see http://www.sei.ie/ for further detail on how to apply to community groups involved.

For further information applying for the schemes, Sustainable Energy Ireland (SEI) can be contacted at www.sei.ie/hes or by calling the dedicated phone line 1890 927 000.