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Priscila Mc Geehan

Budget 2025: Some Progress on Renewable Energy, But Opportunities Remain


As the Irish government unveils Budget 2025, the focus on renewable energy and sustainability becomes increasingly apparent. This year's budget holds significant potential to accelerate Ireland's renewable energy goals, particularly in the solar sector. However, critical areas require further attention to ensure a comprehensive transition to a low-carbon future.


Investment in Grid Infrastructure

One of the standout announcements is the allocation of €750 million for strengthening Ireland’s electricity grid infrastructure. This funding is crucial for supporting the ambitious target of generating 8GW of solar power by 2030. Currently, a robust and reliable grid is essential for integrating the increasing share of renewable energy sources. Without these investments, the goal of a predominantly renewable energy grid remains at risk.


Enhanced Support for Solar Energy

In addition to grid investments, the government has increased funding for the Solar PV Scheme. This funding will enable greater adoption of solar energy at both the residential and community levels, allowing more households to benefit from renewable energy generation. However, while this funding is a positive step forward, there are lingering questions about whether it will be sufficient to drive widespread adoption of solar technology without reinstating previous grants for homeowners.


Positive Developments in Energy Efficiency

The budget also introduces a reduction in the VAT rate for heat pumps, which will decrease from 13.5% to 9% beginning January 2025. This measure aims to promote cleaner heating solutions, thereby reducing reliance on fossil fuels. Furthermore, increased funding for energy efficiency upgrades through the Sustainable Energy Authority of Ireland (SEAI)—totaling €469 million—will support various initiatives, including:

  • The Warmer Homes Scheme, providing free energy upgrades to homes at risk of energy poverty.

  • The National Home Energy Upgrade Scheme, which assists homeowners in achieving deeper retrofits with heat pumps.

  • The Better Energy Homes Scheme, encouraging homeowners to take a step-by-step approach to home upgrades.

  • The Community Energy Grant Scheme, supporting community-oriented partnership approaches to energy savings.


Disappointment in Grant Restoration

Despite these advancements, the budget falls short in one crucial area: the restoration of grants for homeowners installing rooftop solar panels. Previously, these grants could reach up to €2,700, significantly boosting solar adoption across the country. The lack of reinstatement leaves many wondering how the government plans to stimulate interest in solar energy among homeowners. While the increased funding for the Solar PV Scheme is a step in the right direction, it raises the question: will this funding be enough to encourage widespread uptake of solar technology without reinstating these essential grants?


A Call for Action

In summary, while Budget 2025 represents a positive step forward for renewable energy in Ireland, there are still opportunities to be seized.


As Ireland continues to transition toward a sustainable energy future, it is essential to advocate for the restoration of these grants. Doing so would not only maximise the potential of the solar sector but also empower homeowners to engage actively in the clean energy transition. The restoration of grants aligns with our shared goals of reducing carbon emissions and enhancing energy security.


As stakeholders in the energy sector, we must work together to ensure that solar energy remains a cornerstone of Ireland's decarbonisation strategy. With the right investments and policies in place, we can harness the full potential of solar energy and move toward a brighter, greener future for all.

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