The decision to include measures to support electricity microgeneration in Budget 2024 has been described as “positive” by the Micro Renewable Energy Federation (MREF).
The MREF welcomed the announcement made today (Tuesday, October 10) by Minister for Finance Michael McGrath that as part of Budget 2024, the tax disregard in respect of personal income received by households who sell residual electricity from microgeneration back to the national grid will be doubled.
MREF chairman, Pat Smith, said: “The doubling of the tax disregard in respect of payments to homes for renewable energy exported to the grid to €400 is a hugely positive measure.
Minister McGrath said that from January 1, 2024, an income disregard of up to €400/year will apply to profits or gains arising to a qualifying person from the microgeneration of electricity.
“This will provide relief from income tax, USC (Universal Social Charge) and PRSI (Pay Related Social Insurance),” Minister McGrath added.
MREF
In addition to the measures regarding electricity microgeneration, Budget 2024 has included actions to extend the accelerated capital allowances scheme for energy efficient equipment for a further two years.
Smith said: “Extending accelerated capital allowances to businesses for renewable energy installations for a further two years will be important in helping business fund their renewable energy investments.”
Smith also said that extending the 0% rate of VAT (value added tax) to solar PV (photovoltaic) installations on school roofs was welcome.
But he has called on Minister McGrath to “further extend the 0% VAT rate to voluntary bodies and sports clubs”.
Farms and households are all eligible for support through schemes that have already installed solar panels on 70,000 buildings across the country, according to the minister.
Budget 2024
A subject that, according to Smith, “stakeholders are interested in”, is that of the government’s strategy on anaerobic digestion (AD) and biomethane.
He said there would be “disappointment that there was no reference to AD in the budget speech” and said that “clarity is urgently required around the development of this important renewable technology in Ireland”.
Smith had said earlier this year that government grants and other supports for the adoption of sustainable technologies such as anaerobic digestion (AD) for biomethane generation from agricultural and food waste feedstocks need to be to be progressed urgently.