Developers to get €9m housing grants

PROPERTY DEVELOPERS are to be given €9 million to build houses that are at least 30 per cent more energy efficient than required by building regulations, Minister for Energy Eamon Ryan announced yesterday.

Developers will have to achieve a minimum building energy rating of "A2" to secure grants of up to €15,000 per home, or 40 per cent of the total cost of the energy-saving measures, under the Low Carbon Homes Programme launched yesterday.

To meet the A2 standard, buildings will have to use solar heating, minimise heat loss through insulation and ventilation control, and use heat recovery systems. There will be a requirement they generate some of their own electricity using sun, wind or hydro power.

New building regulations introduced last year set energy-efficient standards that were 40 per cent higher than 2005 standards. Mr Ryan proposes to increase standards by a further 20 per cent in 2010, which would give houses a building energy rating of A3. However, the grants programme aims to achieve even higher standards.

"These will be houses where energy waste is minimised and where heat is produced and electricity generation on site. This is the housing of the future."

The grant is wholly for the developers; however, the buyers of houses will benefit from lower energy costs, Mr Ryan said.

"There is a downturn at the moment, but there will be a recovery and when things do pick up, the building industry will have to have a rethink in terms of building for both environmental and economic sustainability. One of the fundamental reasons for the economic downturn is the high cost of energy."

Mr Ryan said that he decided to give developers money to implement the higher standards, instead of making these standards compulsory, to encourage better building.

"Incentivising some developers to build to higher standards will show that it is possible to make these types of housing the standard."

The grant scheme will be administered by Sustainable Energy Ireland.