HOW TO cut heating bills, reduce carbon emissions and create thousands of jobs in the construction sector in the process? The Government, through its national insulation programme, has pointed the way. At a cost of €100 million in 2009, this investment in greater energy efficiency is worthwhile. It makes sense for the taxpayer and the householder.
It is good for the environment and it provides a small but significant boost for the economy that is set to contract sharply this year. As Minister for Energy Eamon Ryan said in launching the initiative: “this insulation programme saves energy, saves money and creates jobs”.
The €100 million scheme will, it is expected, employ 4,000 people and benefit some 50,000 homes this year. It consists of two grant schemes, each receiving €50 million. Beneficiaries will be those in private middle- income and private low-income homes, including local authority houses. The country’s housing stock amounts to 1.7 million homes. One million of these houses, it is estimated, need some retrofitting to achieve energy savings. Although funding for the current scheme is not yet guaranteed for 2010, the economics of the insulation programme are compelling.
Householders are offered a range of incentives to improve the energy efficiency of their homes. Significant savings can be achieved through various insulation methods over different time periods. Attic insulation is one of the simplest and cheapest methods and the estimated payback time is from three to six years. A €250 grant covers one third of the likely cost. External wall insulation is the most expensive insulation method: there, a potential cost of €19,000 is offset by a €4,000 grant with an estimated seven to 20-year time period to recover the initial outlay.
For low-income households and those on a social welfare allowance, substantial energy savings – up to 50 per cent – could be achieved where these homes receive all the available measures. These households spend more of their incomes on fuel than the better-off. But, because of low building efficiency standards, many experience “fuel poverty” – where a household cannot afford to keep adequately warm at a reasonable cost. Efforts are being made to tackle this problem, in part through energy efficiency improvements. Already some 22,000 low-income households have benefited. The €50 million that is now allocated to improve energy efficiency for poorer households should help ensure better home insulation and also secure a reduction in “fuel poverty”.