The Micro Renewable Energy Federation (MREF) has called on the government to reverse grant cuts and address grid access issues to ensure the continued adoption of renewable energy by farms, businesses and households.
In its pre-budget submission, the organisation acknowledged that roof top solar PV generation has been given a major boost by recent government decisions.
However, MREF chair Pat Smith outlined a number of issues that need to be addressed “to create the conditions necessary to achieve our full renewable energy potential”.
MREF
Smith said that there is “real concern” that the positive momentum built up in the micro-generation sector will be lost by “further planned domestic grant cuts next year”.
The domestic grant supports for Solar PV installations were reduced to a maximum of €2,100
at the start of 2024 which MREF said has “had a negative impact in the marketplace”.
The organisation has called on Minister for Finance Jack Chambers to increase this grant to €2,500 until at least 2030 as part of Budget 2025, which will is due to be announced on October 1.
MREF said that the current supports in place for farms through the Targeted Agricultural Modernisation Scheme (TAMS 3) must be maintained.
Smith said that rising interest rates and inflation are creating a “challenging environment” for farms, businesses and households.
He said this is making the decision to invest in renewable technologies more difficult.
The MREF chair urged the government to “mandate” banks and financial institutions to provide lower interest loans for renewable energy investments.
Micro-generation
The pre-budget submission said that the Commission for Regulation of Utilities (CRU) and ESB Networks should develop a dedicated ‘Beat-the-Peak’ support structure for battery systems.
“This would allows businesses and farmers invest into battery systems and secure a reasonable return to assist in managing the grid during peak demand times,” MREF said.
Supports are also sought for battery storage to help homeowners use more of their own-generated renewable power, and to assist with grid balancing.
MREF said that priority for smart meter installation must be given to farms, households and businesses generating their own renewable power to ensure the export of renewable electricity can be monitored and rewarded.
The group also said that investment is needed into the national grid to facilitate micro-generators.
“Farms and businesses in some parts of the country are being seriously disadvantaged by massive restrictions imposed by ESB Networks on the size of solar PV systems that can be installed.
“In these situations, MREF has called for at least 70% of the reinforcement costs required to facilitate the system size needed by a farm or business should be covered by ESB Networks,” Smith said.
The MREF chair said that grants, tax supports, and planning exemptions introduced in the past few years have “played a very significant role in generating interest and funding investment in renewable energy and micro-generation”.
“It is vital that these supports are kept in place and increased for the future to keep pace with rising costs and interest rates,” he said.