Eamon Ryan, the Minister for Energy, has refuted claims of price manipulation or inflated charges within the home retrofit sector, which could negatively affect homeowners who use one-stop services to obtain support and renovate their residences. Speaking at the Oireachtas Committee on the Environment and Climate Action on a recent Tuesday, Ryan recognised an increase in costs for those transitioning to homes powered by renewable energy sources.
Retrofits managed by one-stop facilities tend to be of a larger scale and thus, more costly. The Minister maintained his position against accusations of price manipulation and stated, “The sector is highly competitive, enabling consumers to comparison shop. Expenditure reflects the extent of work completed.”
Ryan’s comments came in response to Darren O’Rourke, a Sinn Féin TD, who highlighted the surge in average costs for upgrading homes to a B2 energy rating. The expense elevated from €34,000 in 2022 to a whopping €57,000 in 2024. O’Rourke emphasised the urgency to accelerate retrofitting but recommended scrutinising one-stop stores and ensuring price control.
Minister Ryan noted that the EU commended Ireland for operating one of the most successful retrofit programmes in the continent. The country supported 52,000 upgrades this year through the Sustainable Energy Authority of Ireland – a number that Ryan believes needs to hit even higher targets, assisted by accessible low-interest home energy loans.
Meanwhile, Alan Farrell (FG) expressed his concerns about quickly escalating prices, likely driven by inflation, as well as difficulties in scaling up due to labour shortages in the construction industry. The Minister responded by informing that contractor availability had improved compared to two years prior and that the Government had taken measures to enhance the workforce in heat pump technology, incorporating the switch from oil and gas burners.
Ryan consequently presented a revised forecast to the committee, necessitated by the recent shift of marine planning related operations from the Department of Housing, Local Government and Heritage to the Department of Environment, Climate and Communications. The new overarching authority, the Maritime Area Regulatory Authority, was included in these changes.
This year’s budget allocation for his department stands at €1.216 billion. This encompasses just under €228 million in current and €988 million in capital expenditure.
The Environmental Protection Agency (EPA) has been granted an operating budget of €46.6 million, which includes capital investment. This allocation will allow the agency to enhance its all-encompassing roles by hiring 38 new staff for positions in areas such as climate change, circular economy, licensing, and energy security. Phase two of the land use review is also encompassed in the funding, aiming to create a well-informed understanding of the diverse ecological, economic, and environmental features of Irish land types.
The government’s critical climate and energy strategies are addressed by several taskforces, with the land use group facing the greatest hurdles while being required to register the most advancement, according to the Minister. At present, land functions as a carbon source; however, with the aid of afforestation, it has the potential to become a significant carbon store. This strategy, affirmed by the Cabinet’s long-term climate change policy, recognises that while agricultural emissions can be reduced, they cannot be entirely eliminated.
Considering the sluggish pace of afforestation, with only 650 hectares being afforested this year as opposed to the desired monthly average, Mr Ryan confirmed that the Minister for Agriculture would need to handle these forestry objectives. The long-term strategy now necessitates the afforestation of 30,000 hectares annually, a marked increase from the earlier yearly target of 8,500 hectares. Despite this drastic hike, Mr Ryan remains positive that the goal can be attained, given the ample support for landowners, agroforestry opportunities, and the resolution of licencing issues.
Additionally, over €544 million has been dedicated to the Energy Transformation Programme, designed to sustain reliable and secure energy supplies while facilitating Ireland’s transition to net-zero emissions. An unprecedented €444 million fulfils the budget for upgrading residential and community energy infrastructures and aiding the delivery of the national retrofit plan. Solar PV schemes are amongst those funded by this record-breaking allocation, of which €380 million stems from Carbon Tax receipts, superseding last year’s figure by €89 million.
Finally, €30 million supports the SEAI’s operational expenses, incorporating the cost of additional staffing, thus enabling it to implement a diverse array of programmes, include retrofitting.