Farmers will be able to sell on excess electricity generated under the Targeted Agricultural Modernisation Scheme (TAMS 3) according to an organisation which represents companies and stakeholders involved in the solar energy sector.
Farmers can currently apply for grant aid to install solar PV on their rooftops under the TAMS 3 at a rate of 60% with a ceiling of €90,000.
According to the Minister for Agriculture, Food and the Marine, Charlie McConalogue, the solar capital investment scheme (SCIS) will “enable farmers to generate their own power”.
However the Oireachtas Joint Committee on Agriculture, Food and the Marine has highlighted that the current “disjointed regulatory and support framework” can deter some farmers from investing in solar projects.
In its latest report, Solar Energy and the Agricultural Industry, the Oireachtas committee identified a number of key areas where reform is needed to “incentivise” farmers to invest and adopt solar energy opportunities.
One of its recommendations was that a new scheme should be established by the government – with electricity companies and financial institutions – to “offset” the upfront costs for farmers of installing solar panels through low-interest loans or by selling on excess electricity to the national grid.
The author of the report, Sinn Féin’s spokesperson on agriculture, Matt Carthy said the adoption of on-farm solar energy production technology could “enhance family farm incomes and contribute positively to Irelands emission reduction obligations”.
“Presently, there are too many barriers in place at every stage of the process; from planning and financial barriers to installing panels, to obstacles for storage and grid access, to a complex regulatory framework and disparate departmental responsibility relating to regulation, microgeneration and supports.
But according to Pat Smith, chair of the Micro-Renewable Energy Federation (MREF), under TAMS 3 “circumstances can arise where electricity, generated at off-peak times greater than the onsite demand at that time, will be exported to the grid”.
Smith added “It is permissible to receive payment from the electricity utility company for this exported electricity. Indeed, utility companies are obliged under European Union (EU) law to remunerate customers where this situation occurs.”
The MREF has clarified that this is dependent on the the quantity of electricity generated annually from the solar PV system being less than the quantity of electricity consumed annually onsite”.
The organisation outlined that the Solar Energy Survey which is part of the TAMS application facilitates the Department Agriculture, Food and the Marine (DAFM) to ensure that this condition is met by farm families.