Farmers can receive up to €130/MWh for renewable energy export projects under the second phase of the Small-Scale Renewable Electricity Support Scheme (SRESS) launched today (Wednesday, May 22).

The scheme is aimed at renewable energy community groups and small and medium-sized enterprises (SMEs), including farmers, to support the deployment of small-scale renewable electricity generators.

The scheme complements the micro-generation supports for small projects and competitive auctions for larger projects under the auction-based Renewable Electricity Support Scheme (RESS).

The Climate Action Plan sets a target of up to 5GW of solar by 2025, and 8GW by 2030, as well as at least 500MW of local community-based renewable energy projects and increased levels of new micro-generation and small-scale generation.

Tariffs available under the SRESS, which come at a 15-year support lifetime for successful applicants, for SMEs, including farmers, and communities are as follows:

  • Solar PV up to 1MW
    • Communities: €150/MWh;
    • SMEs and farmers: €130/MWh;
  • Solar PV greater than 1MW and up to 6MW
    • Communities: €140/MWh;
    • SMEs and farmers: €120/MWh
  • Wind energy up to 6MW
    • Communities: €90/MWh;
    • SMEs and farmers: €80/MWh.

Under the SRESS, a farmer, a developer or a community will enter into a power purchase agreement (PPA) with a registered electricity supplier from which they will receive a certain amount of revenue.

If the revenue received is below the tariffs announced under the renewable energy scheme, the state will pay a top-up to the electricity supplier which will be automatically passed on to the applicant.

The support rate will be provided for the support lifetime, with successful applicants receiving a premium on the market revenues they receive from a supplier for their renewable electricity.

It is proposed that applicants to the scheme will receive a letter of offer, entitling the electricity supplier who enters into a PPA with the successful applicant to receive SRESS support through the Public Service Obligation (PSO). 

TAMS

All farmers are eligible to apply for the renewable energy scheme. Farmers who receive grants under the Targeted Agricultural Modernisation Scheme (TAMS) can still apply for the SRESS, however, the projects must be entirely separate.

No auction process is required under the scheme. The terms and conditions of the scheme are expected to be published in July this year, with scheme applications opening later this year.

MREF

The launch of the second phase of the SRESS was welcomed by the chair of the Micro-Renewable Energy Federation (MREF), Pat Smith.

Smith, however, raised concerns that the target export tariff rates will “challenge the economics of many projects, and whether they can proceed or not”, particularly where “projects are funded using bank or other forms of debt financing at high interest rates”.

“A key element in the cost of projects are grid connection costs for micro-generation which need to be slashed.

“These have to be re-examined by the Commission for the Regulation of Utilities and the networks operator, ESB Networks, if we are serious about promoting the wider adoption of renewable energy,” Smith said.