A new "pay-as-you-save " scheme is expected to replace the current grant-aided system for retrofitting older houses, Minister for Energy Pat Rabbitte has confirmed.
Speaking at a conference in Dublin today, Mr Rabbitte said the Programme for Government commitment to move out of State supports for energy efficiency and into a pay-as-you-save scheme was something he is keen to progress.
Pay-as-you-save schemes, which have proven popular in the US, enable consumers to finance insulation upgrades over a number of years from energy savings generated. An initial report on how such a model could work in Ireland is to be completed in October.
Mr Rabbitte said he had held talks with a number of different parties about how a pay-as-you-save scheme might operate here. He said that any such scheme would require "flexibility and choice" in order to appeal to consumers.
The new scheme is expected to replace the existing retrofit grant supports, for which the 2011 capital allocation is €91.4 million.
There are approximately one million buildings in Ireland that would benefit from some form of energy efficiency retrofit which could lead to lifetime energy savings worth €16 billion.
Efficiency upgrades have been completed in 33,559 homes this year and over 96,000 homes since the first retrofitting programme was introduced in 2009. In total, the estimated energy savings achieved are 529 GWh or €33.14 million.
According to Comhar, the Government-appointed Sustainable Development Council, up to 25,000 jobs could be created in retrofitting homes over the next decade.
Mr Rabbitte said that while he was pleased with the progress made so far in terms of increased energy efficiently, a number of barriers still remained including difficulties in accessing capital and a lack of interest among customers.
"The practical barriers to installing energy efficiency measures include the upfront cost of measures, the length of time required for measures to pay back in savings and the ‘hassle’ involved in planning and carrying out work," he told delegates at the second Annual Retrofit Conference in Croke Park.
"Most of all, many people have never even thought about retrofitting their homes and aren’t aware of the energy savings available to them. In today’s climate of rising energy prices, we can provide more incentives than ever to encourage uptake of energy efficiency measures," he added.
The Government has set a target of reducing energy demand in Ireland by at least 20 per cent in 2020.
The savings identified in the National Energy Efficiency Action Plan (NEEAP) represent approximately €1.6 billion in annual energy cost reductions for the economy in 2020 while also reducing our CO2 emissions by approximately 5.7 million tonnes per annum.
