Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

I thank Deputy Stanley for the question. The programme for Government contains a specific commitment to facilitate the development of solar energy projects. The White Paper on energy policy published in December 2015 also includes a commitment to introduce a new renewable electricity support scheme designed to encourage the development of Ireland's abundant, diverse and indigenous renewable energy resources, including solar photovoltaic technology.

It is widely recognised that solar photovoltaic, PV, technology has become more cost effective for electricity generation over the past few years not only compared to other renewables such as wind energy but also compared with conventional forms of generation. With these significant changes in the cost of the technology, the deployment of solar PV technology in Ireland has only recently become a potential cost-effective option to increase energy security, contribute to our renewable energy targets and support economic growth and jobs. It is also recognised, however, that while the cost competitiveness of solar PV technology has improved, it would still require a subsidy in order to be developed on a commercial basis.

The REFIT, Renewable Energy Feed In Tariff, electricity support schemes are the principal means of supporting renewable electricity generators for renewable energy exported to the grid. These schemes support electricity generated from a range of renewable sources, including small scale hydro, biomass and wind. Small scale renewable micro-generation is eligible to apply for support under the REFIT schemes. My Department is currently undertaking in-depth economic analysis to inform the cost of a new renewable electricity support scheme. While no decision has yet been taken on the precise renewable technologies to be supported, and the appropriate level of tariffs are still under consideration, the cost and technical viability of a range of renewable technologies, including solar PV technology, is being assessed.

Designing and implementing a new scheme is a complex task and it is expected that the broad details of the new scheme will be available early next year. Before these details are announced, my Department will run a second public consultation, which will give all interested parties an opportunity to input into the design of the new scheme.  Ultimately, the introduction of any new scheme will be subject to Government approval and state aid clearance by the European Commission.

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