Mr. Rory Somers:

Microgeneration is moving forward. In February, the clean export guarantee tariff became available on the transposition into Irish law of Article 21 of the renewable energy directive. There is now an obligation on suppliers to remunerate micro and small-scale generators for any residual renewable electricity they export to the grid. The arrangements to be put in place and the regulatory framework required are under way through the CRU. We expect payments to begin after June. People with eligible micro and small-scale generators who have registered for an export connection with ESB Networks on the local grid are already accruing the benefit of this export and they will receive payment later in the year.

This is the first stage of the enabling framework. It brings into the marketplace real remuneration that was never there before. We understand it has bred a little bit of frustration among people who have been early adopters. We know there are those on the islands also. They have been producing electricity for their own consumption and by the nature of the profile of the demand they have been exporting to the grid but not receiving remuneration. This remuneration is now available and will begin not only to pay those people who have already invested but will improve the business case for those considering investment in the future. The second phase is direct microgeneration support. The clean export guarantee is not a government support. It is an obligation under the EU directive and is funded by the suppliers. There is no requirement for Exchequer or PSO funding for direct supports.

The Government is supporting microgeneration. The first phase of microgeneration support is the domestic grant scheme, which commenced on 16 February. There are changes to these supports, which were started by the Chair when he was Minister back in 2018. The scheme has grown from 78 applications at its initiation in 2018 to more than 4,000 last year. It is growing substantially year on year. The grant rate levels have been kept the same as those of previous years to encourage uptake. We have also reduced the barriers to entry to the scheme. Previously the minimum building energy rating requirement was set at C level. This has been removed to provide greater access to solar PV in particular for houses with more challenges in energy efficiency. Houses built until 2020 are eligible for the scheme. This creates a greater pool of potential applicants for the scheme. Later this year the SEAI will expand the scheme to non-domestic applicants and small businesses, farms and community buildings with up to 6 kW solar capacity will be able to apply for a grant. We expect this to commence in July.

There is also a clean export premium tariff. This guarantees a fixed tariff over 15 years for electricity exported to the grid. Any difference between the market value of the electricity that is exported and the tariff rate will be funded by the PSO. At present electricity prices are very high and the impact on the PSO in the current period is likely to be limited if not nothing. Following consultation with the Commission for Regulation of Utilities, which is the energy regulator, we expect an implementation plan in the third quarter of this year and the tariff will be in place thereafter.

As my colleague, Mr. Newsome, mentioned we recognise there is a need to fill in support in the space between microgeneration and large-scale renewables under the renewable electricity support scheme, and in particular to recognise the difficulties there are with projects in the community category of the renewable energy support scheme. This is not only a competitive category but it also has a minimum threshold of 500 kW. Not only must community projects compete with one another but they must start with a relatively large scheme. In recognising this, the programme for Government is committed to a small-scale generation scheme. It will look to provide supports of between 50 kW and 500 kW or perhaps 1,000 kW that would not require a competitive auction environment. It will allow people to start smaller local community projects to build out their expertise and recognise the challenges in the funding required, particularly in small communities, and to provide a different mechanism of remuneration with a guaranteed tariff at a fixed rate to underpin the investment.

In parallel with this are the exemptions on planning that have been mentioned. The Department has been working with the Department of Housing, Local Government and Heritage on the revisions to the exemptions for solar installations, including solar PV. These exemptions are well drafted at this stage. They include the provision of exemptions for new building types, including community buildings, educational buildings and apartment buildings which were not there previously. These exemptions have not been available to date. They will be available once the regulations are passed. There have been challenges with the environmental assessment associated with the revision of these exemptions. Work on the strategic environmental assessment and the appropriate screening, which are the two critical environmental assessments that need to be done, is well under way. Barring issues coming out of the screening we expect that draft regulations will be published for a four-week consultation in the coming weeks. They will then need to go through both Houses of the Oireachtas on their way to becoming law.