By Colin Ahern, Chairperson of Solid Fuel Merchants Ireland (SFMI)
As Chair of Solid Fuel Merchants Ireland, I speak on behalf of hundreds of independent, often family-run businesses that provide an essential heating supply to homes across the country. For decades, we’ve kept rural Ireland warm, particularly in areas off the gas grid.
But today, our sector finds itself at a crossroads. While national energy policies now focus on retrofitting and electrification, these ambitions often overlook the lived reality in rural Ireland – where grid infrastructure is limited, retrofitting is unaffordable for many households, and solid fuel remains the only viable heat source.
We support the transition to cleaner energy. But it must be just, inclusive and grounded in reality.
The Rural Energy Reality
Thousands of homes in counties like Leitrim, Roscommon, Donegal, and Kerry still rely on solid fuels. These homes are typically older, with poor insulation and no access to natural gas. Installing heat pumps or undertaking deep retrofits in such houses is often financially or structurally unfeasible.
While grants are available, the costs still run into the tens of thousands. In the meantime, these households are expected to abandon their affordable, accessible fuel sources – without practical alternatives.
This is not a transition. It’s an exclusion.
Environmental Progress, But New Challenges
According to the EPA’s 2023 report Ireland’s Air Pollutant Emissions 1990–2023, emissions of sulphur dioxide (SO₂) fell by 96% since 1990, and particulate matter (PM₂.₅) dropped by nearly 68%. These are major achievements, supported in part by merchants transitioning away from smoky fuels.
However, despite a contraction in solid fuel use in 2023 – due to milder weather and higher prices – solid fuel combustion still accounted for almost half of residential PM₂.₅ emissions. This confirms that while demand has softened, the sector remains significant – particularly in rural areas where fuel choice is limited.
Solid Fuel Merchants Ireland believes the path forward lies not in eliminating the sector, but in pivoting to cleaner fuels: low-smoke, low-sulphur products, kiln-dried logs, and quality-assured biomass pellets. Many of our members are already doing this – and doing it in line with Ireland’s emissions reduction goals.
A Call for Balanced and Fair Policy
To support this transition and ensure rural homes are not left behind, SFMI calls on Government and regulators to take the following steps:
- Enforce Against Illegal Fuel Imports
The sale of high-sulphur fuel smuggled from Northern Ireland is gravely undermining environmental progress and threatening the future of compliant businesses. This trade evades carbon tax and VAT, costing the Exchequer an estimated €8.7 million annually, with losses projected to reach €77 million by 2025. We urge increased resources for local authorities and Revenue Commissioners to tackle this problem head-on. - Register All Fuel Retailers with the EPA
Under the current regulations, producers must register with the EPA – but retailers are not required to. This loophole allows unscrupulous sellers to operate without oversight. By making EPA registration mandatory for all retailers, Government can lift standards and protect consumers across the country. - Support Low-Carbon Innovation
Our sector is investing in research and development to create low-carbon briquettes and fuels from biomass and organic waste streams. Some of these products already emit 80% less smoke and 33% less CO₂ than traditional coal. SFMI calls on Government to offer innovation grants and funding supports to accelerate the development of sustainable fuel options. - Reform the Fuel Allowance Scheme
SFMI proposes a voucher system administered through Intreo offices, allowing recipients to buy fuel locally from compliant merchants. This would strengthen rural economies, ensure compliance, and reduce misuse of public funds. - Improve Labelling and Advertising Standards
Products falsely labelled as “low-smoke” – in breach of the 2% sulphur limit – are still being sold in plain sight. A regional enforcement model is needed to police this issue, backed by a clear reporting and accountability structure. - Introduce a Sunset Clause for Regulatory Change
Legislation impacting the solid fuel sector should include a sunset clause tied to national retrofitting targets. Until 500,000 homes are upgraded – as set out in the Climate Action Plan – households must have access to regulated, affordable solid fuels. This will offer certainty, protect against fuel poverty, and allow time for cleaner alternatives to take hold.
Market Contraction – But Not Disappearance
Solid fuel usage may have declined in 2023, but it hasn’t disappeared. Nor will it, in the short to medium term. It continues to play a critical role in rural energy resilience – especially in areas where electrification is still out of reach.
Rather than treating the sector as a problem to be eliminated, Government should view it as a partner in transition. Our members are ready to adapt. Many already are. What we need is policy that recognises our role, enforces standards evenly, and supports innovation.
Conclusion
Solid fuel remains a lifeline for rural homes – one that is evolving and improving. SFMI and our members stand ready to work with Government, environmental stakeholders and regulators to reduce emissions while protecting energy access and economic fairness.
Let’s not freeze out rural Ireland. Let’s warm it responsibly – with regulation, fairness, and foresight.
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