The new solar PV scheme announced by government will encourage businesses and farmers to invest in renewable technologies, Micro-Renewable Energy Federation (MREF) chair, Pat Smith has said.
The scheme will allow for the expansion of grant supports for installation sizes up to 1,000kWp capacity, which is significantly above the previous 6kWp limit.
Describing the changes as a “major development” for the agri-business and the farming community, Smith said it will be an “added benefit” for farmers who are considering solar PV.
New scheme
“For the first time there is now a dedicated solar PV grant that’s easily accessible for farmers, businesses, and agri-businesses right across the country and it is a very welcome development,” he said.
The amended Non-Domestic Microgeneration Scheme is operated by the Sustainable Energy Authority of Ireland (SEAI) and will open for applications in mid July.
The updated grants will be as follows:
- Up to 6kWp will remain unchanged up to €2,400, with an additional:
- €300/kWp for each extra kWp installed between 7kWp-20kWp;
- €200/kWp for each extra kWp installed between 21kWp-200kWp;
- €150/kWp for each extra kWp installed between 201kWp-1000kWp.
This would mean that installations up to 1MW could be eligible for a grant of up to €162,600, the Department of Environment, Climate and Communications (DECC) said.
The grant will typically support 20-30% of the investment cost, reducing payback to “as little as five years”, according to the DECC.
The SEAI confirmed to Agriland that entrance to the scheme allows for the different variations for those operating in the agriculture sector, including the sole trader.
This grant takes the form of a once-off payment based on the installation of a solar PV system. The registered Meter Point Reference Number (MPRN) must be non-domestic, the DECC said.
Commenting on the changes, Smith said the new scheme is going to have the same “very simple and straight-forward” process as for a domestic home owner.
Solar PV
Larger businesses such as co-ops and meat factories could potentially put 1MW of solar on their roofs and therefore receive a grant of up to €160,000, according to the MREF chair.
In the case of a poultry farmer, for example, who puts 50kW on a roof, Smith said the grant can be anywhere between €10,000-€12,000.
The focus now should move to removing any remaining blockages, he said, including quicker grid access agreements from ESB Networks and “attractive” KWh payments for surplus energy.
“Any business, farm or home with a solar PV installation should to be prioritised for a smart meter so that energy exported can be accurately measured and paid for,” the MREF chair said.
“We have removed planning permission requirements to install solar panels, and we’ve reduced the VAT to 0% for the supply and installation of solar panels on homes.
“As a result, our Domestic Solar PV Scheme operated by the [SEAI] is continuing to power ahead with record levels of applications in 2022 and 2023, resulting in approximately 60,000 homes now being registered as microgenerators.
“It is vital therefore that business are now afforded the same opportunity to start their energy transition journey,” Minister for the Environment, Climate and Communications, Eamon Ryan said.
‘Entry barriers’
The expansion of solar PV needs a whole-of-government approach and the removal of entry barriers, the national environment chair of the Irish Farmers’ Association (IFA), Paul O’Brien said.
This, he said, includes easy and quick national-grid access, a dedicated renewables budget for farmers, and government promotion of renewable technologies benefits.
Welcoming the scheme changes, O’Brien said “solar PV technology offers a real opportunity to reduce costs, support environmental ambitions and foster energy independence”.
“The ambitious climate change targets set out by the government must be matched with schemes with the correct supports and processes that make them appealing for people,” he said.