Between €7bn and €8bn will be required to retrofit Ireland's stock of rental housing to BER of B1 or B2, the Economic and Social Research Institute (ESRI) has found.
Research funded by the Department of Housing shows that of the 240,000 to 260,000 rented properties with BERs of below B2, the majority are either D (30%) or C (52%) rated.
The remaining 45,000 private rental homes have an energy efficiency rating of E1 or below.
The costs of upgrading to a B rating are estimated to be €43,000 on average for G-rated properties and just under €30,000 for C-rated properties based on 2023 prices and data from 1,500 upgrades in social housing, approved housing bodies and the private sector.
The cost of retrofitting only the lowest efficiency rentals with current BER of E1 or below is between €1.7bn and €2.3bn.
The National Residential Retrofit Plan aims to improve the energy efficiency of homes, including private rental properties, by achieving a BER rating of B2 or the most cost-optimal level.
The research was commissioned to provide the government with a detailed and thorough understanding of the current energy efficiency levels in the sector.
“The residential rental sector in Ireland is expected to undertake investments to lower carbon emissions in the coming years," said Janez Kren, co-author of the report.
"This research attempts to quantify the scale of this challenge and provide an evidence base to inform policymaking in this area.”
Dr Conor O’Toole, co-author of the report, commented: “Our research considers not only the scale of investment required to increase energy efficiency in the rental sector but also considers how such investments can be financed, in particular by household landlords.
"This analysis points to a need for external financing (through loans or otherwise) if these investments are to be realised.”
In a statement, landlords group the Irish Property Owners' Association said widespread retrofitting could worsen the rental crisis, and claimed that landlords making homes more energy efficient are being targeted by government policy.
Citing CSO data, said that IPOA 8.9% of RTB-registered rental properties have a BER of F or G, compared to 15% of Irish owner-occupied homes.
It warned that retrofitting may lead to landlords leaving the market, and deter potential landlords from making properties available to rent.
(Pic: Getty Images)
