The Sustainable Energy Authority of Ireland (SEAI) left €120 million of its capital budget unspent last year despite pressure to hit retrofitting targets.
The level of underspending – equivalent to almost 20 per cent of its overall capital budget – came despite considerable pressure to hit retrofitting targets.
It earned the agency a rebuke from Government, with Minister for Energy Darragh O’Brien saying it was “of great concern” and “very disappointing”, adding that it “cannot incur such a level of underspends again”.
The Government aims to spend billions on grants to enable retrofits through programmes such as the Warmer Homes Scheme, which underspent its allocation by €33 million in 2025, and the Better Energy Homes Scheme, which was €20 million under budget.
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In a letter sent to the SEAI in January, O’Brien warned that it had to review its structures and procedures “to ensure it can deliver the step-change in activity required to keep pace with the Government’s ambitions for the sector”.
The Coalition has made an indicative allocation of €3.7 billion through the National Development Plan to pay for residential energy efficiency programmes through the SEAI.
Briefing notes drawn up for O’Brien in advance of a meeting with SEAI chief executive William Walsh – released under Freedom of Information laws – show the agency cited a combination of internal and external “delivery challenges” contributing to the underspend.
The Department was told of softening demand on schemes, delays to some large community energy-grant schemes, as well as High Court proceedings brought by a supplier seeking to injunct an SEAI decision to switch its business to a new firm.
O’Brien told the SEAI that retrofitting delivers savings while reducing energy consumption and emissions. “That is why this underspend for 2025 is so very disappointing. These monies should have been put to use.”
The Fianna Fáil Minister also took issue with the agency for notifying his Department of the underspend late in the year. He said this was “very problematic” as it came too late and significantly constrained officials’ ability to manage its financial position.
He said closer governance and policy oversight was on the cards, including enhanced monthly monitoring of programme activity and expenditure trends.
Social Democrats energy spokeswoman Jennifer Whitmore said the underspend was “alarming”, arguing that retrofitting is labour- and time-intensive, and can be prohibitively expensive. She said focus on retrofitting instead of other solutions like domestic solar was a “huge missed opportunity”, arguing that “there needs to be a complete rethink of how homes can be supported to deal with energy costs.
An SEAI spokesman said it had its biggest year on record last year, spending over €645 million to assist 58,000 homes bring down their energy bills.
In relation to the Warmer Homes Scheme, he said more homes were supported than targeted, but at a lower cost per home. “Enhanced processing and forecasting have been put in place for another record year this year, with growth already strong to [the] 2027 target of over 70,000 retrofits.”
A spokeswoman for the Department said a national retrofit plan was launched in January and introduced a number of new and expanded measures to make energy upgrades more affordable and accessible.
Applications to the SEAI for individual home energy upgrades were up 250 per cent in the first half of the year, and overall applications for residential and community schemes were up 120 per cent.
She said the Department continues to engage closely with the SEAI on “all matters relating to finance and governance”. Capital expenditure had increased by 21 per cent to the end of July, a trend which is expected to continue through the rest of the year, she said.
