BUDGET 2027 – HOW DID THE ENVIRONMENT FAIR?
Updated October 21st, 2026
If you tuned your car radio to anything other than “Classic Hits” in the first week of October, you likely heard pundits and punters alike weighing in on the government’s Budget 2027, officially unveiled on October 6.
Instead of delivering sweeping, “big-bang” structural overhauls, the government presented a €8.5 billion package consisting of €7 billion in extra public spending and €1.5 billion in targeted tax cuts. What I call the “pick ‘n’ mix” budget (described by others as a “patchwork quilt” or a “little something for everyone” budget) was packed with financial adjustments aimed at pleasing as many groups as possible: workers, families, pensioners, ahead of the upcoming general election.
Most of what made the news, and to be fair, the details that concern most of us most acutely, were measures geared to ease the escalating cost of living. Which in the current reality means the cost of just getting by.
For those of us trying to keep an eye on the challenges of the future as well as the challenges of the present, Budget 2027 earns mixed reviews.
The Government’s decisions to lower carbon tax on natural gas, and to defer any increase on carbon tax on other fossil fuels until after May 2027 will be popular with homeowners, commuters and hauliers worried about rising energy costs. The University Times, though, justifiably opined that
these policy measures show a blatant disconnect from the reality of climate change, where each additional year of surplus carbon emissions — which CO₂ taxes are meant to disincentivise — compounds the risk of extreme weather, income loss for agriculture and jeopardises water and energy security further. Thus, short-sighted economic policies may have ecological as well as economic repercussions in the long term.
What Is The Climate Impact Of Budget 2027?
Environmental groups observed that Budget 2027 reflects a government that doesn’t comprehend the depth of the climate, biodiversity and energy security crises the world faces. Budget 2028 should, they argue, include the kind of radical measures to wean the nation off the fossil fuels that have left us exposed to repeated external shocks and volatile energy prices.
Even the government’s own Department of Finance described Budget 2027 as “climate negative”.
Is there enough good news in the Budget to allow the for the defense that it is more “climate neutral” than “climate negative”?
Here are the major positive takeaways we noted:
Over €640 million is allocated for SEAI programs, featuring expanded funding for solar PV, battery storage, and a new fossil fuel boiler scrappage scheme. These measures will bring the total maximum grant available for installing a solar system with battery storage up to €2,400.
Tax relief on profits from personal renewable energy generation – that’s the excess energy from a solar system that a homeowner can sell to the grid – rises from €400 to €600.
Relief from Vehicle Registration Tax for electric vehicles (EVs) has been extended until December 31, 2028.
The Budget also provides specifically for enabling the most at risk housing groups to avail of the transition to renewable energy through enhanced financial supports. Medically vulnerable customers, and lower-income homeowners and renters should be more readily able to move to cost-effective, green, energy options. Grants of up to €9,000 toward the installation of solar will be available to those in receipt of certain social welfare payments – including the Disability Allowance, Carers Allowance, One-Parent Family Payment, and others.
Similar “enhanced supports” were made available to businesses. Through the SEAI, grants will rise to cover up to 45% of the cost of installing solar power, heat pumps and other energy saving technologies. “By increasing grant support for these measures,” said Enterprise Minister Peter Burke, “we are helping businesses strengthen their resilience, improve productivity and reduce exposure to volatile fossil fuel prices. This is a practical investment in the competitiveness of Irish enterprise and in a more secure and sustainable future.”
For those able to avail of these grants and reliefs, Budget 2027 will feel more climate friendly than climate negative. That’s not everything, but – like so much else in this Budget – it’s a little of something.
Why Choose Solar In Ireland?
Investing in a solar panel systems in Ireland can bring many benefits, including reduced energy bills, increased energy independence, and a reduced carbon footprint. If you are interested in installing a solar panel system in Ireland, it is also worth exploring the different grant options and green business loans available and seeking professional advice from one of our solar energy advisors.
Feel free to contact us for more information, we’re here to help.
