The terms and conditions of the export phase of the Small-Scale Renewable Electricity Support Scheme (SRESS) have been published today (Tuesday, December 24), with applications due to open on January 27, 2025.
The Department of the Environment, Climate and Communications (DECC) developed the scheme to provide support for renewable electricity installations that are not as suited to other support measures.
This includes utility-scale Renewable Electricity Support Scheme (RESS) and the Micro-generation Support Scheme (MSS).
It has been designed for small-scale community, farm, and small and medium enterprises (SME) projects (above 50kW and up to 6MW in capacity size), offering a simpler, non-competitive route to market.
The first phase of SRESS has been in place since last year, with grants being offered to renewable self-consumers above 50kW and up to 1MW.
This is through the Non-Domestic Microgen Scheme and the Business Grants and Supports Scheme run by the Sustainable Energy Authority of Ireland (SEAI).
Scheme
Successful applicants to the scheme will receive a letter of offer entitling the electricity
supplier who enters into a Power Purchase Agreement (PPA) with the successful applicant
to receive SRESS 1 support through the Public Service Obligation (PSO).
The PSO levy or payment, is collected from or paid to all electricity customers to fund schemes to support national policy objectives related to renewable energy for Ireland.
The tariff is structured as a two-way feed-in premium (FiP) tariff without an auction. When electricity prices are low, projects will receive a premium on the market revenues they receive from a supplier for their renewable electricity.
The tariff is described as two-way because when the market price of electricity is lower than the tariff the difference will be paid to the supplier from the PSO levy.
However, when the market value of electricity is higher than the tariff the supplier will be obliged to pay the difference into the PSO levy.
A supplier may take a portion of the tariff for administrative purposes, which will be subject to negotiations with the applicant. The department has no role in these negotiations.
For SRESS renewable energy communities tariff rates, €150/MWh will be offered for small scale solar PV (above 50kW and up to 1MW).
A total of €140/MWh will be offered for small scale solar PV (greater than 1MW and up to 6MW), and for wind energy less than 6MW, €90/MWh is the rate.
Meanwhile, tarrifs will be slightly less for SME rates, with €130/MWh offered for small scale solar PV (above 50kW and up to 1MW).
For small scale solar PV (greater than 1MW and up to 6MW), €120/MWh is the rate and for wind energy less than 6MW, €80/MWh is the rate.
Rates
The DECC has confirmed that 30% of the tariff rates will be adjusted annually in line with the harmonised index of consumer prices.
The tariffs were determined with the assistance of external economic consultants, using the latest economic data to consider the costs associated.
Renewable energy community projects are offered a higher tariff due to the additional barriers they face establishing such projects, according to the DECC.
SRESS 1 support is capped to the capacity limits and once volumes have been reached, the application window will close, and the minister will consider future tariffs rates and further capacity limits.
Volume limits for renewable energy communities and SMEs in SRESS for community led projects are as follows:
- Small Scale Solar PV (above 50kW and up to 1MW): 25MW;
- Small Scale Solar PV (greater than 1MW and up to 6MW): 80MW;
- Wind (<6 MW): 15MW.
The volume limits for SME led projects are as follows:
- Small Scale Solar PV (above 50kW and up to 1MW): 30MW;
- Small Scale Solar PV (greater than 1MW and up to 6MW): 120MW;
- Wind (<6 MW): 20MW.
A review of the tariffs may occur three years after commencement date or after the application closing date. This will only affect the tariff rates for future SRESS applicants and will not affect those who have already received a letter of offer.
Renewable electricity
To meet the EU definition of an SME, both enterprises and farmers must have fewer than 250 employees and an annual turnover less than or equal to €50 million or a balance sheet total less than or equal to €43 million.
SRESS Renewable Energy Communities (REC) projects must at all times be 100% legally and beneficially owned by a REC.
RECs must have been issued with a Grid Connection Assessment for a potential grid connection agreement for a valid SRESS project.
REC projects that applied or participated in previous RESS competitions will be eligible to
apply for support under SRESS providing they meet the eligibility criteria set out in the
SRESS Terms and Conditions.
Applicants will be required to send a completed application form and the required documents to [email protected] with full details available online.
All applications will be received on the same date, regardless of time will be given equal status by the department.
However, where the volume quota of a given SRESS category is likely to be breached on a
given day, email timestamps will then be used to decide which applications are to be accepted into the scheme on that day.
All SRESS 1 projects must establish a Community Benefit Fund (CBF) to be used for the
wider environmental, social and economic well-being of the local community, in line with the UN Sustainable Development Goals.
All SRESS 1 Projects must establish a CBF before their commercial operation date.
All SRESS 1 Projects will be required to make a contribution of €2/MWh of the Loss-Adjusted SRESS 1 Metered Quantity until the December 31, 2043 or the date which falls fifteen years (15) after the SRESS 1 support start date.
Successful applicants will be required to meet a number of milestones such as this. Failure to do so will result in participants having their letter of offer revoked.