Government Seeks Solutions for Homeowners Blocked from Fossil Fuel Boiler Grants

Minister Darragh O'Brien is developing options to help households left without heating due to EU regulations restricting grants for fossil fuel boilers.

Speaking in the Dáil, the Minister confirmed he is examining measures ahead of the upcoming budget to assist a cohort of homeowners with end-of-life or broken boilers. Under the Energy Performance of Buildings Directive, grants can no longer be provided to replace existing units with stand-alone fossil fuel boilers. This has created a regulatory gap for lower-income households who cannot afford alternative heating systems.

Scheme Expansion and Demand

Delivery under the Better Energy Warmer Homes Scheme has increased significantly. The Minister noted that 8,100 homes were upgraded last year, compared to just over 3,000 in 2019. Between 2019 and August of this year, the scheme delivered 39,500 fully funded upgrades for households at risk of energy poverty.

Budget 2026 allocated €340 million to the scheme, targeting 11,500 completed homes this year. Due to the transition toward deeper retrofits, the average cost per home under the scheme reached €28,500 in the first half of 2026. The SEAI is currently drafting a waiting list action plan to manage a 52% surge in applications, which have exceeded 10,800 this year.

The Regulatory Gap

Under current rules, heating system appraisals are triggered when insulation works cover more than 25% of a building's wall area. However, because EU rules prevent grant aid for fossil fuel systems, some households cannot find a route to replace broken systems.

Deputy Paul McAuliffe highlighted that some residents are facing consecutive winters without heating. These individuals cannot access the Warmer Homes Scheme because they lack a functioning boiler to register a heat loss indicator, and alternative emergency funding from local authorities or the Department of Social Protection is no longer available to cover these costs.

Alternative Solutions Trialled

To address this gap, the Government is piloting plug-in, high-temperature heat pumps as a potential alternative. A trial involving approximately 100 homes is currently underway. The Minister stated that performance data from this pilot will be gathered by the end of the year or early next year to assess if the technology can be rolled out at scale.