New retrofit plan to make home upgrades more affordable

Last week a package of new and enhanced grants for homeowners across the country who are looking to benefit from home energy upgrades was announced.

Designed to make homes warmer, more comfortable, and cheaper to heat, a new and enlarged package of grants will be administered by SEAI under the new National Residential Retrofit Plan. The new measures will see many more households benefit from homes that are warmer and cheaper to heat. There will also be increased grant support for approved housing bodies and local authorities, as well as support n the community for older people.

Minister for Climate, Energy and the Environment, Darragh O’Brien, commented: “In the Programme for Government, we committed to take decisive action to provide warmer, more comfortable homes, as part of our drive to support energy affordability, security, and sustainability. The measures that I am announcing will make more homes more sustainable and energy-efficient, reducing reliance on fossil fuels, and lowering energy costs for households. By promoting retrofitting, renewable heating, and solar energy, we will make homes warmer and cheaper to heat.

“Last year, we helped more than 58,000 homeowners to benefit from energy upgrades under SEAI schemes. We will build on that this year, widening the net to upgrade even more homes in 2026 and making home energy upgrades more affordable and accessible to all.”

William Walsh, chief executive of SEAI called the announcement “a huge boost. Last year was a record year for SEAI, but now, with these new measures, we will go even further, bringing lower energy bills and more comfortable, healthier living to thousands more across the country. We’ve built up the industry, we have the expertise, and now we have the momentum. There really has never been a better time to retrofit your home and at SEAI, we are here to help you every step of the way.”

These are a range of new or additional measures, which will be accessed under the SEAI’s (existing) Better Energy Homes Scheme.

They include:

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 max grant of €12,500 will apply to applications already in train with the SEAI (and not yet processed for payment).

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 and/or wall insulation – measures for which generous grants are already available.

- 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. First time buyers will be able to avail of a higher fixed grant for attic insulation that 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 (i.e. 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, they can apply for a grant for a second wall measure.

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.

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.

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.

For homeowners who want to upgrade their home in one go, the popular One Stop Shop service will continue to be a great option.

The works will be fully managed by an SEAI-registered One Stop Shop, and there’s a wider range of grants, with the grants deducted from the cost of the works upfront.

These applicants will also benefit from any of the newly announced grant increases. There are also low-cost loan options available through participating lenders.