Thousands of Irish households could be in line for €14,500 grant in new scrappage scheme

If approved, the new boiler scrappage grant is expected to be introduced from January 2027placeholder image
If approved, the new boiler scrappage grant is expected to be introduced from January 2027 | Stock

The new boiler scrappage scheme is particularly aimed at households which continue to rely on oil and kerosene for heating

Thousands of Irish households with older oil or kerosene boilers could be in line for thousands of euro in grants under plans for a new boiler scrappage scheme.

Minister for Climate, Energy and the Environment Darragh O'Brien is set to bring the proposal to Cabinet next week, with the new scheme expected to offer households an additional €2,000 towards replacing their fossil-fuel heating system with cleaner technology.

The proposed payment would be available on top of existing grants for heat pumps and other home energy upgrades.

Current supports available through the Sustainable Energy Authority of Ireland (SEAI) provide grants of up to €12,500 towards a heat pump system for eligible houses.

This means qualifying households could potentially receive supports worth up to €14,500 when the new €2,000 scrappage payment is included.

Under the existing scheme, the maximum €12,500 heat-pump support is made up of up to €6,500 towards the heat pump itself, up to €2,000 for necessary upgrades to central heating components such as radiators or underfloor heating, and a €4,000 Renewable Heat Bonus for households moving away from fossil-fuel heating.

The proposed scrappage scheme is particularly aimed at households which continue to rely on oil and kerosene for heating, many of which are located in rural areas.

Speaking in New York, where he was attending the United Nations General Assembly, Minister O'Brien said many people around the country remain dependent on kerosene home heating oil and have faced significant increases in prices.

Further details, including the precise eligibility requirements for the scheme, are expected following next week's Cabinet meeting.

If approved, the new boiler scrappage grant is expected to be introduced from January 2027.

The announcement comes as the Government seeks to encourage more households to move away from fossil fuels and towards renewable heating systems.

The SEAI says heat pumps provide renewable heating and can reduce carbon emissions, although homes must be sufficiently well insulated for the systems to operate efficiently.

Minister O'Brien is also bringing plans for a separate domestic battery storage grant to Cabinet.

That measure would allow households with solar panels to receive support towards installing a battery, enabling them to store electricity generated by their panels for use at another time.

The Minister has not yet confirmed how much the battery grant will be worth but has indicated that it will be a significant support. It is expected to be introduced as early as October.

Full details of both proposed schemes are expected after Cabinet considers the measures next Tuesday.

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