In a recent homeowner survey, 60% of homeowners said that the grants available are insufficient to incentivise energy efficiency upgrades in their properties.
To increase the number of homes that meet an “acceptable” BER Standard, the SEAI recently extended the end date on many of the grants available to property owners. The problem is, that the available grants are either not economically viable or offer minimal incentive to make the upgrades.
The SEAI offers 3 significant grants:
- Individual Energy Grant
- One Stop Shop Grant link this
- Fully Funded Energy Grant
The three main grants which replace the “warmer home scheme” cover, on average, around 25% of the overall cost, except the fully funded grant, which is only available to individuals who claim certain state benefits.
The survey, which was conducted to find out why the grants were not being utilised, made it crystal clear that the financial reward for landlords on their energy bills was not worth the large capital outlay, even with the assistance of the grant.
Why is it so important that homes are more energy efficient?
Since 2014, when the Energy Efficiency Obligation Scheme (EEOS) was introduced, energy efficiency has been at the forefront of most political parties agendas.
The reason is, that energy efficient properties create less energy waste and therefore emit fewer greenhouse gases. Ireland has committed to reducing its production of greenhouse gases by 50% before 2030, and energy efficient properties go a long way towards this target as laid out in the Climate Action Plan 2021.
Not only does it benefit the environment, but less wastage means lower utility bills, so it also benefits tenants of the property, or if the landlord offers an “all bill inclusive rent arrangement”, it will benefit the landlord financially.
But as it stands today, the reduction in the utility bill over five years does not exceed the average cost of the works undertaken to get the property to a B2 BER Standard.
Will SEAI increase grants?
In February of this year, the SEAI increased the grant contribution by 50%, so given previous situations of a similar nature, one could take an educated guess and say, it’s unlikely that grant contributions will increase again this year.
But even with the grant remuneration not incentivising landlords currently, it has been predicted that more landlords will apply for grants as energy prices increase.
The most important quantifiable metric from the survey revealed the true driving motive for most landlords when considering energy efficiency upgrades. 66% of landlords surveyed said they were motivated to make energy efficient upgrades to reduce utility costs. Only 23% said the environment would enter into their decision.
Although the grants are currently under scrutiny, they do offer energy efficient upgrades at a reduced cost, which in turn lowers utility costs, makes the property more attractive to renters and increases the overall property value.
If you are unsure on any aspect of the grant or its respective application process, please contact KPM Group.
Property Management Company Dublin
If you need any advice on how to obtain grants, or if you have multiple properties you wish to apply for grants on, KPM Group can help. We have an experienced team who can either advise or project manage the energy efficient improvements to your rental property(s)
KPM Group has helped countless landlords free themselves from the day-to-day management of their portfolios and trust us to deliver the maximum return on investment while providing quality property management services.
If you would like to speak to us here at KPM about your portfolio, then get in touch today, and a staff member will be happy to help in any way we can.
