Evidence from a national grant aid scheme for residential energy efficiency retrofits: application abandonment, retrofit depth and free-riding

Panel: 9. Consumption and behaviour

This is a peer-reviewed paper.

Authors:
John Curtis, Economic and Social Research Institute, Ireland
Matthew Collins, Economic and Social Research Institute, Ireland

Abstract

In order to facilitate energy efficiency retrofit works in the home, the Sustainable Energy Authority of Ireland administers the Better Energy Homes scheme as a means of contributing to a 20% reduction in Ireland's energy use by 2020. At present, grant aid is available for up to four energy efficiency retrofit measures. This paper brings together findings on various aspects of the grant aid scheme, these being the abandonment of applications to the scheme, retrofit depth within the scheme and the extent to which free-riding has occurred in the scheme. We find that applications made through obligated energy suppliers, who are required to achieve reductions in residential energy consumption, are less likely to abandon an application but are more likely to be made for shallower retrofits. We find that applications for more complex retrofits and those made during winter months are more likely to be abandoned. The introduction of bonus payments for three- and four-measure retrofits did not have the desired effect in inducing these deeper retrofits, while free-riding in the scheme is found to be quite low for most measures examined.