Taoiseach Micheál Martin has insisted that retrofitting is “very, very effective” in reducing household energy bills, amid questions raised about the policy’s impact.
The remarks come as the Government continues to defend its decision not to suspend scheduled carbon tax increases, despite a surge in energy prices driven by the war in Iran. Ministers have argued that the tax is required to fund key schemes, including the national retrofitting programme, fuel poverty supports, and environmentally-focused farming initiatives.
This position has become a point of contention as households face higher costs, with the Government instead opting for temporary measures such as reductions in fuel duties and an extension of the fuel allowance to ease pressure in the short term.
A recent report by the Economic and Social Research Institute (ESRI) has raised questions about the effectiveness of retrofitting in reducing energy usage, noting that measured outcomes may not align with expectations.
The ESRI stated that Building Energy Rating (BER) metrics can “diverge substantially from actual energy use,” and highlighted evidence suggesting little variation in average consumption between homes with different BER ratings.
The report also pointed to behavioural factors, including the possibility that households in less efficient homes may underheat to save money, with energy use increasing following upgrades rather than declining.
However, when this was put to the Taoiseach, Martin rejected suggestions that these findings undermine the Government’s approach, maintaining that retrofitting delivers clear benefits for households.
“I think it is very effective,” he said.
“Very, very effective in terms of energy efficiency. Talk to anybody who has had their houses retrofitted. Talk to people who have had solar panels on their roofs, they all testify to the reduction of bills.”
He said the programme’s central purpose was to reduce costs for households.
“And the most important point of the retrofitting programme is reducing bills,” Martin said.
“And it does reduce bills. And it is a very, very effective programme.”
Martin also defended the role of carbon tax revenues in funding a range of Government initiatives, arguing that removing the tax would impact multiple programmes.
“I think first of all the impact of it in May would have very little impact on home heating and so forth,” he said.
“And the more important point is that the resources that are garnered from this enables the retrofitting programme.”
He pointed to wider spending supported by the tax, including agricultural schemes and social protection measures.
“And you should read Eamon Ryan’s column in the Irish Times today, as there is an article on it,” Martin said.
“And I think he takes strong issue with the ESRI’s perspective on the retrofitting programme.”
“But also it is used for farming. I mean if you look at, for example, the ACRES scheme…Sixty percent of that is exchequer funded, and it is the carbon tax revenues going into that.”
Tánaiste Simon Harris also defended the Government’s approach, linking carbon taxation to longer-term energy policy and resilience.
“One of the ways forward in terms of building economic and energy resilience is to get ourselves off fossil fuels,” he said.
“And the idea that you have a carbon tax that is helping fuel that transition is going to have a real and meaningful benefit.”
He said continued investment in transition measures was necessary to reduce exposure to external shocks.
“If we do not want to constantly see Europe and Ireland in this position where decisions taken far from here are having a real impact on people’s pockets and our economy, we have to continue to support the funding streams that are helping that transition,” Harris said.