As the new carbon tax, introduced in May 2010 hit the fossil fuels' prices up, home heating bills are set to rise as well, leading to increases of 8.4% in the household heating bills. The carbon tax was imposed on fossil fuels such as petrol, diesel, home heating oil, coal and peat briquettes. Mr Eamon Ryan, the Minister for Communications, Energy and Natural Resources explained that energy from renewable sources and better energy efficiency would reduce Ireland's dependence on fossil fuels and stimulate the Economy.

Other home heating sources such as eco briquettes, wood pellets and other renewable energy fuels were not affected by the legislation as the Government goes in line with the EU Policy and Initiatives for Renewable Energy and Energy Efficiency.

A number of initiatives have been introduces in Ireland in order to promote greater energy efficiency such as:

The Greener Homes Scheme - Aiming to increase the use of sustainable energy technology in Irish homes. This scheme provides assistance to homeowners who intend to purchase a new renewable heating energy system for existing homes, which was first occupied prior to 30th June 2008. This scheme is administered by The Sustainable Energy Authority of Ireland - SEAI.

Warmer Homes Scheme - This scheme aims to improve the energy efficiency and comfort conditions of homes occupied by low-income households, and to establish the systems and growing the capacity in Ireland to install such measures. This includes: Attic insulation, Cavity wall insulation, Draught proofing, Hot water cylinder insulation, Use of low energy light bulbs, Energy advice. Further details on SEAI.

Ireland's House of Tomorrow - Research, development and demonstration programme, which provides financial support to encourage developers of housing, new and refurbished, involving clusters of 5 or more homes, to incorporate design and technology features, which deliver significantly superior energy and CO2 performance. The aim is to establish, over a number of years, a nationwide network of accessible examples of more sustainable energy design and technology practices.Further details on SEAI.