Higher Retrofit Grants to Boost Home Energy Upgrades

Homeowners could soon benefit from significantly increased financial support for energy upgrades under new retrofit measures expected to be announced by the Minister for Climate, Environment, Energy and Transport, Darragh O’Brien.

Under the proposed changes, attic insulation grants are set to rise to a fixed payment of €1,800, up from the current €1,500 cap for detached homes, with lower rates applying to other property types. This represents an increase of €300 for many households.

Heat pump grant supports are also expected to improve substantially. The maximum eligible cost will rise to €12,000, with the State covering up to 80% of the expense — equivalent to €9,600. At present, detached homeowners can claim a grant of €6,500. In some cases, the grant level will increase by €700 where a €12,000 upgrade is undertaken, bringing State support to €7,200. Fixed grant amounts for heat pumps will be introduced from March 3, with levels to be reviewed after two years.

For the first time, grants for windows and doors will be made available as standalone upgrades. Owners of semi-detached homes will be able to access grants of up to €3,000, with the State covering approximately 30% to 40% of costs. Previously, such works had to be carried out alongside other retrofit measures.

Overall, €558 million will be allocated to SEAI retrofit grants, highlighting the Government’s focus on tackling energy affordability. Electricity prices rose by an average of 4.7% last year, while around 300,000 households are currently in arrears on their energy bills, according to the Commission for Regulation of Utilities.

Approximately 240,000 homes have already been retrofitted nationwide. To build on this, the Minister is progressing plans for a “retrofit passport”, aimed at helping middle-income households upgrade their homes gradually rather than undertaking costly deep retrofits all at once.

The revised grant structure is intended to make supports more attractive and accessible. From March 3, fixed-amount attic insulation grants will also be available under the Better Energy Homes Scheme for first-time buyers of existing homes.

It is estimated that around 65,000 households will avail of energy upgrade grants this year. Mr O’Brien has said the aim is to permanently reduce household energy bills, particularly for those struggling with arrears, while also cutting emissions.

These measures come as Ireland faces challenges in meeting its 2030 climate targets. The national retrofit plan published in 2024 set a goal of upgrading 500,000 homes to a B2 BER rating and installing 400,000 heat pumps to replace fossil fuel systems by the end of the decade.