Retrofit scheme 'not enough' for low income, energy poor households

The Warmer Homes Scheme offers free energy upgrades for homeowners deemed to be most at risk of energy poverty.

Although the revised measures announced on Tuesday extend the eligibility for free upgrades, a study from University College Cork suggests that this may not be enough for some households.

The study examined 120 North Dublin households with a low disposable income and are engaged with Money Advice and Budgeting Service (MABS). It found that over a third of the households did not qualify for the free upgrades.

These households were found to already be financially squeezed with no scope to engage in upgrades.

A lack of access to finance was found to be a key barrier for low income households to invest in energy efficient measures.

For 90%, the cost of the work involved was an important factor in deciding whether to engage in energy upgrades.

Free energy upgrades through the SEAI are available to those in receipt of certain welfare payments. For all others, around one third of the cost of an energy upgrade is grant-aided.

Many homeowners take out green energy home improvement loans to supplement the SEAI grants.

Money for the works is required upfront with the actual grant received following completion. This option is not viable for the vast majority of low income households.

Being unable to avail of the grants and supports prevents those homeowners from reducing their energy bills which would increase their disposable income.

MABS has expressed concern that a new cohort of people may be considered energy poor as the fight to tackle climate change continues.

"Not all MABS clients can afford to participate in the climate action agenda and therefore may find themselves paying more for energy in their home," said Gwen Harris, North Dublin MABS regional manager.

Of the households surveyed, just under two-thirds qualified for free upgrades but just 8% had availed of them. Where they did, it was in the form of smaller measures such as attic insulation and the purchase of lagging jackets and low-energy light bulbs.

For the vast majority, they were not aware that retrofit grants were an option available to them.

"A wider range of tailored measures will be necessary to reach and support low disposable income households to transition to energy upgrades," commented Olive McCarthy, a senior lecturer and director of the Centre for Co-operative Studies at Cork University Business School at UCC.

The UCC study suggests that face-to-face advice and support at a household level is critical to the provision of supports that take into account individual circumstances.

Although many were not aware of the grants offered, all of the households involved in the study were aware of the need to reduce energy consumption and had altered their behaviours in an effort to use less.

The households were turning off lights and heating when they were not needed, taking shorter showers and switching off unused electronical devices.