Ireland’s housing sector comprises of 1.7 million homes, contributing significantly to the nation’s energy consumption and emitting 29% of energy-related greenhouse gases. According to The Sustainable Energy Authority of Ireland, Irish homes surpass the industrial sector in emissions. The average floor area of Irish homes is larger than in other EU member states, and the emissions attributable to Irish homes are about 58% more than the average EU home.
In addressing Ireland’s housing emissions challenge, Ciara Wrafter, Tax Partner at KPMG, notes, “Currently, there is a stock of residential property in Ireland that needs to be retrofitted and renovated to help meet our climate targets. The tax system can play a role by incentivising property owners to take action. Tax policy can also be a powerful tool to promote sustainable behaviour by businesses and consumers.
The government aims to retrofit 500,000 homes to a BER of B2 or better by 2030, addressing energy efficiency and emissions, and the focus is enhancing insulation, upgrading windows, and transitioning to non-fossil fuel-based heating systems, predominantly heat pumps.
While the average retrofit cost to the consumer (after SEAI grants) is around €40,000, the government has committed €8 billion over eight years to incentivise and facilitate the process. However, the challenge lies in rapidly scaling up retrofits, requiring increased workforce training and public awareness to meet the ambitious 2030 target. With ambitious targets and a tight timeframe, Irish homeowners and other stakeholders will need to prioritise this issue. The introduction of government-backed low-cost finance loans for home retrofits in Q1 2024 will be a welcome enabler for those looking to retrofit their home.