Tax incentives and low finance scheme called for by banking body to encourage home retrofitting

Some 60 per cent of consumers say tax incentives would encourage them to invest in home energy upgrades, as cost is the main factor deterring them from making their homes more energy efficient.

A new report on retrofitting published by the Banking and Payments Federation Ireland (BPFI) has called for further government action to make retrofitting more affordable for homeowners, through the introduction of tax incentives, a low-cost finance scheme, and increased grants and subsidies for ancillary costs such as Building Energy Rating (Ber) certification.

The report, Decarbonising Homes in Ireland, found that while there were signs of growing momentum in home retrofits, at current rates of progress, the Government’s targets for home retrofitting and heat pump installation were “ambitious”, and would require “a significant increase in delivery”.

The Government’s plan aims to retrofit 500,000 homes to a B2 Ber and install 400,000 heat pumps by the end of 2030.

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[ Head to head: Does retrofitting your home pay off? ]

[ Number of homes retrofitted up 150% in second quarter ]

In a survey of 1,000 adults, conducted in April by Amárach Research on behalf of BPFI, it was found that 40 per cent of consumers are not aware of the Ber rating of their homes.

The vast majority of respondents (86 per cent) said that reducing energy bills was one of the most important reasons for wanting to make their home more energy efficient, but cost was cited as the main factor deterring people from doing so.

The estimated cost of a full retrofit ranges from €25,000 to €75,000, depending on the property’s age.

Some 82 per cent of consumers said that the increasing cost of living was making it more difficult to invest in greater energy efficiency.

Sixty-three per cent of respondents agreed tax incentives would encourage them to invest in home renovations to improve energy efficiency, while 58 per cent said a low-cost finance scheme supported by the Government would have the same effect.

Louise O’Mahony, head of sustainable banking at BPFI, said that while the Government had made “considerable efforts” to support retrofitting of homes “further action is now required on the part of Government in order to ensure retrofitting numbers reach the scale required to meet Ireland’s decarbonising targets”.

[ How to retrofit your home and slash your energy bills ]

[ Kathy Sheridan: Saying goodbye to the Aga was just the start of my retrofitting problems ]

The BPFI called on the Government to launch its proposed home retrofit loan guarantee as soon as possible, to introduce tax incentives for people to use savings for retrofit projects, and to consider a stamp duty rebate scheme to encourage people buying low Ber-rated homes to upgrade them within a specified time period.

The federation also called for the establishment of a government-led, cross-industry steering group to “identify practical and innovative solutions to help people retrofit their homes”.