The Government of Ireland has allocated almost €1.1 billion (~$1.16 billion) in Budget 2026 to accelerate its energy transition and support the country’s path to a net-zero future, according to the country’s Department of Climate, Energy, and the Environment.

The department stated that core capital allocation has increased by €169 million (~$179 million) compared to the previous year, with record levels of funding directed towards home energy upgrades, offshore renewable energy development, and the circular economy.

Budget 2026 provides €724 million (~$768 million) to make Ireland’s energy systems sustainable, affordable, and secure. This includes a capital allocation of €558 million (~$591 million) for the Sustainable Energy Authority of Ireland (SEAI) residential and community energy upgrade program, including the solar program.

The allocation marks an €89 million (~$94 million) increase on the corresponding €469 million (~$497 million) provided in Budget 2025. The funding will be further supported by additional contributions, such as those from the European Regional Development Fund, which will support the Warmer Home Scheme and the overall 2026 budget allocation.

Offshore Renewable Energy and Grid Investment

The budget provides €8 million (~$8.48 million) for offshore renewable energy data surveying under the ICNF’s Offshore Site Surveying Program. This investment aims to de-risk future offshore renewable energy projects by improving data availability, supporting the development of the offshore renewable energy sector, and promoting competition in the Offshore Renewable Electricity Support Scheme auctions.

Ireland will implement a €3.5 billion (~$3.71 billion) investment in the national electricity grid as part of its National Development Plan (2026–2030). This initiative will be carried out in collaboration with EirGrid and ESB Networks to enhance grid capacity, improve resilience, and support increased renewable energy integration

Public Sector and R&D Funding

Budget 2026 allocates €21 million (~$22.3 million) under the first phase of the Infrastructure, Climate and Nature Fund (ICNF) for public sector retrofitting across multiple departments.

ICNF was established in Budget 2025 to channel windfall tax receipts into long-term climate investments.

Continued investment will also be directed toward the SEAI’s Research, Development, and Demonstration Program, which supports innovative energy projects involving industry and academia to accelerate Ireland’s transition to a clean and secure energy system.

Climate Action and Transition Support

Budget 2026 includes €209 million (~$221.5 million) to accelerate climate action and prepare Ireland for the impacts of climate change. This allocation supports Ireland’s legally binding national climate objective to achieve a climate-resilient, biodiversity-rich, environmentally sustainable, and climate-neutral economy by 2050.

An additional €28 million (~$29.7 million) is allocated for international climate commitments, while €64 million (~$67.8 million) is provided for the Environmental Protection Agency to sustain monitoring, research, and enforcement programs.

Consumer Protection

Ireland also announced that the government will extend the value-added tax reduction on electricity and gas bills, from 13.5% to 9%, until December 31, 2030. The scope of fuel allowance will be broadened to include recipients of the Working Family Payment, and the weekly allowance will increase from €33 (~$38.77) to €38 (~$44.59), providing an additional €140 (~$148.40)/household during the heating season.

The €400 (~$424) income tax exemption for profits from microgeneration of electricity will also be extended to 2028. Ireland has over 150,000 households and businesses registered with ESB Networks for microgeneration capacity, a figure that continues to rise.

In May this year, Ireland witnessed growing solar power purchase agreement offers, especially to support its growing data center industry, according to a report by LevelTen.

In April this year, Ireland reported increasing its renewable energy auction volumes according to SolarPower Europe’s mid-year market report.