Ruairi Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context

64. To ask the Minister for Communications, Climate Action and Environment if he will provide an update on the funding streams that are available for geothermal heating schemes, to include the amount that has been drawn down to date in 2024; and if he will make a statement on the matter. [41388/24]

Ruairi Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context

Will the Minister provide an update on the funding streams available for geothermal heating systems, including the amount drawn down to date in 2024? It will not come as a shock that I am still looking for a solution for Carlinn Hall, which has a communal heating system. I have been told there is a need to look at the support scheme for renewable heat for district heating across the board and that it is not fit for purpose at this point.

Eamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context

The Sustainable Energy Authority of Ireland, SEAI, manages a number of residential and community energy upgrade grant support schemes on behalf of my Department. Grant support of up to €6,500 is available to install heat pumps under the better energy homes scheme, and up to €10,500 under the national home energy upgrade scheme or the community energy grant scheme. The SEAI has advised that, to the end of September 2024, grant support was provided for 2,584 heat pump installations.

The SEAI only records the specific heat pump technology installed under the better energy homes programme. Of the heat pump installations supported under better energy homes to date this year, €286,000 in grant support was provided to homeowners in respect of 40 ground-source-to-water heat pump systems and four water-to-water systems. An installation grant of up to 40% for investment in renewable heating systems using ground source heat pumps is also available through the SEAI’s support scheme for renewable heat, which provides financial support to help businesses move to renewable heating.

While the SEAI does not provide dedicated funding for geothermal heating schemes, it does fund related research, including an assessment of the viability of retrofitting an existing communal heating system at Carlinn Hall, Dundalk, County Louth with a shallow geothermal heat pump system. The report on the research, which was published in November 2023, contains recommendations in relation to heat network efficiency and options for low-carbon heat alternatives, including costs of installation and operation. The scheme in question is privately owned and managed, and the implementation of any of the recommendations is a matter for the relevant parties to decide upon.

Ruairi Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context

I get the idea of front-line energy and managing the system. At the moment, gas is being bought from Energia which deals with a management company which is made up of the residents. It creates a whole pile of issues.

I have spoken to some third party companies about this matter. They are considering anything that could be a geothermal solution, for example, a column-type system allied with a hybrid system with a number of heat pumps, even if they are not specific to each residence. We need to make changes to the support scheme for renewable heat so that it might suit this type of system, enabling a long-term contract to be drawn up between the management company, the third party provider and the likes of Frontline Energy in order to provide something that is better in terms of the environment and cost.

Eamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context

I accept the Deputy's point. The option is there, and it is a matter for the developer and the residents as to whether they want to go down the route of being able to avail of a 40% grant and whichever is the most suitable technology.

To be more innovative and consider other measures, my Department is drafting a new heat Bill to establish a regulatory model for district heating, including communal heating systems, ensure consumer protection and deliver a vibrant district heating industry. Within the Bill, we could consider whether other measures are possible, but a 40% grant is not insignificant.

It is difficult in the case in question, given that there was such a spike and high prices hit home hard. Gas prices have come down, but they are still high by historic standards. It is a matter for the developer and the residents to work out which approach they might take, but the heat Bill will be coming soon and I hope it will provide further options for the residents. The grant system is not a bad one. It is a significant grant support.

Ruairi Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context

I am not saying it is not. Rather, we need to examine whether the operation of the grant system suits this. Others who have been involved in the wider idea of district heating systems have said that the support scheme for renewable heat would have to be altered to facilitate real moves. Regardless of whoever is in government when the Bill is enacted, it will be necessary. We all accept that these gas-fed communal systems are not perfect and just fell into operation. We need a regulatory model to ensure that we have something better. We do not know what the future holds for gas hikes, but we know that this system is not perfect.

It is not the developer but the residents and this is a major imposition on them, so we have to facilitate them. There will need to be some element of State involvement. The SEAI is open to having conversations, but we need to consider the question of how we provide grants to ensure this approach works.

Eamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context

As I recall, the original plan for the scheme was for wood-fired systems.

Ruairi Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context

Yes.

Eamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context

Gas only kicked in due to supply difficulties. Another avenue for us to consider this matter would be through revisions of the support scheme for renewable heat, SSRH, but that would have to fit into whatever we do with the heat Bill.

I accept the Deputy’s point. We will have to consider this matter further and see how we can deliver district heating in so many guises. It is taking longer than I would like. We have seen it working in other countries. We need to make it work here and we need to learn. There are relatively few examples. Carlinn Hall is only one of two or three at most.

Ruairi Ó Murchú (Louth, Sinn Fein)
Link to this: Individually | In context

There are more in Dublin, including a number of apartments.

Eamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context

True, but it is an important matter that we need to get right. We need to learn from what has happened at the likes of Carlinn Hall so that we can help communities further.