The Micro-Renewable Energy Federation (MREF) has welcomed the extension of the €400 income disregard for micro-generated renewable power sold by households back to the grid in Budget 2026.

Reacting to today's (Tuesday, October 7) Budget 2026 statements from Minister for Finance, Paschal Donohoe, MREF chairperson, Ciarán Kells said: “We very much welcome the extension of the income tax disregard of €400 per year out to 2028.

"This was a key submission by MREF in our Budget submission in advance of Budget 2026.

"We are delighted that the government and Minister Donohoe have agreed with the case we were making that homes and farms need to be incentivised in continuing to adopt renewable power through micro-generation and the installation of Solar PV and battery systems."

The MREF has also welcomed the acknowledgement by Minister Donohoe of what it said is the growing importance of Solar PV systems in the green energy landscape, by noting that there are now 140,000 homes with Solar PV systems installed.

MREF also welcomed the extension of Accelerated Capital Allowances schemes for energy efficiency equipment for a further five years until the 31st of December 2030.

Kells said that the momentum that has built up, and the businesses and jobs that have been created within the micro-generation sector need to be supported.

“Other government plans to cut to grant supports for the installation of solar and battery systems by €300 in January 2026 are a mistake and need to be reconsidered," Kells said.

"MREF has highlighted the risks in our Budget submission that these plans will undermine confidence and unravel the great progress that has been achieve with microgeneration where renewable solar power is now mainstream and enjoys broad support from communities up and down the country.”

In its submission, MREF also asked the government to remove the January 1, 2020, cut-off date for grant eligibility so that solar PV policy is inclusive and supports all homeowners and businesses that want to invest and participate in the national climate action journey.