The war in Ukraine has been an unprecedented wake-up call to European countries to reduce their reliance on imported fossil fuels at a time when renewable energies are becoming a more affordable and climate-friendly alternative. However, the increased cost of construction materials and the ongoing shortage of contractors to complete energy upgrades has made it very difficult for homeowners to carry out retrofits, even as more people understand the benefits of warmer, healthier, cost-effective and environmentally-friendly living spaces.
Higher grants and the cost-of-living and energy crises resulted in more people retrofitting their homes in 2022, according to the Sustainable Energy Authority of Ireland (SEAI). In their first quarterly progress report, published in March, the SEAI noted an 80 per cent increase in Irish homes that were retrofitted in 2022 compared to 2021.
Of the total number of retrofits (29,200), almost 8,500 were upgraded to a B2 standard which is the level of energy efficiency aimed at in the National Residential Retrofit Plan. That plan – which is part of the Government’s Climate Action Plan – has a target to have 500,000 homes retrofitted to a B2 standard by 2030.
Dr Ciaran Byrne, director of the National Retrofit Programme at SEAI says that the introduction of One Stop Shops (contractors who project manage deep retrofits for homeowners, landlords and housing bodies) was another factor which made it easier for some homeowners to embark on retrofitting projects in their homes.
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But, Dr Byrne is also conscious of the factors which impeded the completion of retrofits in a year when demand outstripped supply. “Inflation in the cost of construction materials, labour shortages and supply chain delays due to Covid led to a situation that for much of the year, there was an unmet demand for home energy upgrades,” Dr Byrne says.
In their progress report, the SEAI recorded that they received 50,000 applications for energy upgrades in 2022. This figure includes homeowners/landlords seeking grants for individual energy upgrades (roof and cavity wall insulation being the most popular) and upgrades to a B2 or higher, managed by the One Stop Shops. The majority of the latter were from approved housing bodies upgrading homes for tenants at risk of fuel poverty. The figure also includes fully funded energy upgrades for homeowners on social welfare payments.
www.YourRetrofit.ie is a new online platform which aims to help homeowners understand the costs of individual upgrades and the long-term savings of carrying out such measures (which can include discounts available from various providers across several industries).
“We understand that the retrofit process needs demystifying and that homeowners require guidance regarding the complex set of choices they face,” explains David Shiel, the founder of Prime19 which created YourRetrofit.ie.
Shiel, who lectures on the Masters in Renewable Energy and Environmental Finance at University College Dublin, explains that YourRetrofit.ie is a free to use, unbiased service which identifies the specific energy deficiencies of each individual home based on Ber (Building Energy Rating) data. Once the homeowner inputs the details of their home, the website then offers advice on specific upgrade options suitable for their home and budget.
Irish bank AIB is one of the lenders offering customers green loans with lower interest rates to carry out energy upgrades on their homes. “The AIB green loan rate is available when customers spend 50 per cent or more of the amount borrowed on a green initiative such as wall, attic and floor insulation, window and door upgrades or replacements and ventilation systems,” explains Jim O’Keeffe, AIB’s managing director for retail banking.
Green loans are also available from AIB for the installation of renewable energy systems including heat pumps and solar panels, sustainable water systems, boiler upgrades and pipe insulation. Customers, who must include a quote or an invoice for the energy upgrades on their home, can borrow between €3,000 and €60,000 with terms of up to 10 years depending on the amount and purpose of the loan.
Applications can be made on the AIB mobile app for amounts between €3,000 and €30,000 and by telephone (0818 724725) for joint applications or for amounts between €30,000 and €60,0000. O’Keeffe explains that based on AIB’s standard five-year personal loan, the current rate for the AIB Green Personal Loan represents a saving of about €1,350 over a five-year period.
Ultimately, more and more homeowners, landlords and housing agencies will have to embark on retrofitting if the Government is to meet its ambitious targets of retrofitting 500,000 homes by 2030.
The SEAI’s National Residential Retrofitting Plan aims to have 185,000 (83,000 to a B2 standard) by 2025 and to ratchet up significantly from 2026-2030 with a target of 72,000 homes upgraded to a B2 standard each year.
The availability of skilled labour to carry out these retrofits will be one of the biggest challenges even when homeowners secure grants and loans to carry out their chosen upgrades.
“We are seeing more and more retrofitting courses on offer through the Education and Training Boards and more contractors upskilling and re-skilling their workers to meet demand,” says Dr Byrne, who emphasises that homeowners do not have to move out of their homes to retrofit to a B2 level.
The SEAI believes that as more and more people have energy upgrades, the benefits will become more obvious to larger numbers of people which in itself will create momentum and build demand.
