Practical, commercially-focussed research to further develop an innovative financial solution for residential retrofits

Project Description

SEAI analysis has identified that, across the major energy-consuming sectors in Ireland, the energy savings potential to 2030 is largest in the residential sector. The estimated cost of the retrofits required is €50billion, of which approximately €4billion is to be funded by the Exchequer. This leaves an approximate investment gap of €46billion. With up to 1 million homes to be retrofitted, this will require hundreds of thousands of citizens to make decisions to invest in retrofitting their home, where average project costs have been estimated at €50,000 per home. Despite current national incentives and support schemes, the depth and scale of retrofits is not yet at the level required to meet our targets. A key barrier cited by householders is lack of sufficient funds. The purpose of this research is to further develop an innovative financial solution that combines low interest rate, long-term finance with a system that makes it easy and convenient for householders to access and repay the finance. The solution will require collaboration and co-creation right across the energy efficiency value chain. Key elements of the proposal include: blending EU funding supports with private finance (blended finance); Pay As You Save loan terms; on-utility bill repayment; tying finance to the energy meter; and a one-stop shop approach for financial and technical advice. The expected outcome of the feasibility study would be a practical, commercial and scalable solution – ready to be tested with consumer focus groups and applied by the assembled stakeholders in a pilot project.