The rental sector is one of the least energy efficient parts of Ireland’s housing stock, a challenge that is becoming increasingly urgent as the country works toward its climate targets. The Irish Building Stock Observatory (IBSO) estimates that only 22% of all properties have a BER of B2 or higher with stock in the rental sector performing even lower. The government views improving BER ratings in rented homes as essential to meeting national emissions goals, yet progress remains slow. Many landlords are reluctant to invest in upgrades due to high upfront costs, while tenants, who would benefit from lower energy bills, have little control over retrofit decisions. This long‑standing split‑incentive dynamic continues to stall energy‑efficiency improvements across both residential and commercial rentals.
Polinreb: Policy Innovation to Solve the Split‑Incentive Issue in Multi‑Sectoral Rented Buildings
Tyndall was awarded funding by the Sustainable Energy Authority of Ireland (SEAI) to lead the Polinreb project. The project will develop a survey to identify challenges and opportunities to support a greater uptake of energy efficiency upgrades in rented buildings and improve the environmental impact of rented properties.
Focus Group and Recommendations
A focus group will build on the survey results and advise the research team on the identification of recommendations regarding new policies, supports and business models that may support an increased uptake of energy efficiency measures across the rented properties in Ireland.
Green Lease Development
The project will also develop green lease contract templates designed to address the split‑incentive issue by enabling a fairer allocation of costs and benefits. These templates will establish mechanisms for data sharing, set shared performance targets, and allow for the recovery or sharing of investments in energy‑efficient upgrades.
Luciano de Tomassi, Senior Research Engineer, IERC, based at Tyndall, comments
The split incentive problem, where neither landlord or tenant have an incentive to invest in the energy efficiency of a home, is a huge barrier to improving the energy performance of rented homes and alleviating energy poverty. Polinreb will work with key Irish stakeholders to deliver tailored solutions to drive energy efficiency upgrades in rented properties.
Coming Up: Ireland’s Energy Future
Next week, the series will look ahead to Ireland’s evolving energy infrastructures, where the FIESO project will empower users to visualise and explore the entire energy system in real time and support the creation of future energy profiles.
