Schneider Electric: Ireland's Budget 2027 must go further on efficiency and grid

Ireland's Budget 2027, announced on 6 October, includes measures to ease energy costs and encourage electrification. The main ones are:

• The €5,000 VRT relief for electric vehicles is extended to 31 December 2028. It applies to EVs priced up to €50,000.

• The income tax exemption on surplus electricity sold back to the grid rises from €400 to €600.

• A new €600 grant for home storage batteries.

• €654.5 million for SEAI residential and community energy upgrade schemes.

Schneider Electric welcomes the support, but says short-term relief needs to sit alongside a longer-term plan for energy security.

"The cheapest energy is the energy we don't use"

Rhonda Doyle, Country President of Schneider Electric Ireland, said:

“Fuel-cost cuts in Ireland's Budget 2027 will provide welcome relief this winter, but they won't protect households and businesses from price shocks longer term. One of the quickest, most effective ways to reduce exposure is to accelerate energy efficiency measures: make retrofits more affordable and incentivise technologies such as heat pumps, solar and smart thermostats to help cut energy consumption. After all, the cheapest energy is the energy we don't use.”

A strategy for a secure, affordable energy system

Doyle said Ireland needs a clear long-term strategy. That means less reliance on imported fossil fuels, faster growth in home-grown renewables, a modernised grid and greater flexibility in how power is used.

“Microgrids, for example, can provide local power to businesses and communities while bypassing grid bottlenecks,” she said. “A clear framework for investment and funding will be essential to scale both these and other electrification initiatives. To encourage the switch and drive demand, this must be paired with incentives – including today’s measures to reward surplus electricity sold back to the grid and extend VRT relief for electric vehicles.

“Together, these steps can strengthen energy security, help manage costs and support Ireland’s competitiveness and sustainable growth.”

What it means for electrical professionals

For installers, contractors and specifiers in Ireland, the Budget points to continued demand for:

• solar PV

• home battery storage

• EV charging

• heat pumps

• smart heating controls

The higher export exemption and the new battery grant make solar-plus-storage easier to sell to homeowners. The VRT extension gives two more years of certainty for EV charger installs.