Upgrading home HVAC equipment is one way to reduce energy bills in the long term, but upfront costs can prevent households from making those improvements.

A home retrofit scheme in Ireland has drawn criticism for not financially supporting the households that need it most.

Here's what to know

Households in Ireland must pay for energy-saving home improvements before retrofit grants reimburse them, making the initial bill a major financial obstacle.

According to The Journal, the Just Transition Commission of Ireland recommended tailoring retrofit assistance to what households can afford and widening access to fully funded upgrades.

Low- and middle-income households are among those the commission said need assistance when upfront payments or additional borrowing are beyond their means.

The commission welcomed funding from the Sustainable Energy Authority of Ireland but said its pay-first approach can keep households from using the grants. The agency reimburses part of the cost of improvements, including heat pumps, insulation, and solar panels.

Efficient heating and cooling can help households reduce their energy expenses and limit their vulnerability to higher utility prices. For U.S. homeowners exploring those upgrades, Palmetto helps compare efficient HVAC and heat pump solutions and can connect you with vetted installers through its Comfort Plan network.

More background

The commission urged the Sustainable Energy Authority of Ireland to speed up retrofits and energy efficiency improvements while recognizing the housing availability and affordability pressures residents face. Fossil fuels supply roughly nine-tenths of Ireland's heating energy, according to its report.

Making these upgrades accessible can help more communities move away from fossil fuel heating. The report called for welfare payments and retrofit assistance to reach households more effectively, recommending changes to how Ireland identifies and tackles energy poverty.

What's being done?

The commission said households and communities "facing the greatest barriers" should be a focus of grants for switching to cleaner heating.

For U.S. households considering another route around upfront equipment costs, Palmetto's Comfort Plan offers $0-down options and can reduce heating and cooling costs by up to 50%. Palmetto Comfort Plans also include 12 years of free maintenance.

Solar panels — another upgrade covered by Ireland's retrofit grants — can work alongside an efficient electric HVAC system to further manage utility spending and make a home more self-reliant. Homeowners considering that combination can use EasyHome's solar comparison shopping tool to compare installation offers and secure the best deal.

The commission proposed safeguards against eviction and rent increases as part of introducing energy performance requirements for rental properties, according to The Journal.

A substantial improvement in a property's Building Energy Rating can allow its landlord to reset the rent to market value under Ireland's rental rules.

Where can I learn more?

Households elsewhere in Europe also face challenges paying for home energy upgrades. 

• The U.K. launched a home energy loan scheme without confirmed lenders, rates, or application dates.

• Hungary planned grants and loans covering up to 95% of solar and heat pump upgrade costs.

• The U.K.'s poorest households face £7,700 clean heat costs, compared with £1,800 for better-off homes.

• In Scotland, a homeowner considered a £7,500 heat pump grant, but low gas use limited potential savings.

• In Britain, £9,000 heat pump grants face cuts to fund defense as gas prices surge.

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