Dáil debates
Thursday, 28 September 2023
Ceisteanna Eile - Other Questions
Renewable Energy Generation
11:10 am
Seán Haughey (Dublin Bay North, Fianna Fail)
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73. To ask the Minister for Communications, Climate Action and Environment if there has been an increase in applications to the domestic solar PV programme since the 0% VAT on the supply and installation of solar panels was introduced. [41861/23]
Aindrias Moynihan (Cork North West, Fianna Fail)
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The introduction of 0% VAT on the supply and installation of solar panels was a very constructive move that encouraged people to install domestic solar PV panels. Will the Minister outline the additional demand and the costs associated with that? Is the Department in a position to meet the increased demand?
Ossian Smyth (Dún Laoghaire, Green Party)
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The month of May 2023 saw the highest number of solar PV applications since the launch of the scheme, with 2,862 new applications accepted. This was a 55% increase on the previous month and a 104% increase on May 2022. There has been sustained high demand on the scheme since then, with August 2023 having a 54% increase over August 2022. This follows the amendment to the Finance Bill 2023 to apply a 0% VAT rate for the "supply and installation of solar panels on domestic premises" effective from 15 May 2023. The domestic solar PV grant scheme under the microgeneration support scheme is administered by the Sustainable Energy Authority of Ireland, SEAI. The scheme came into operation in February 2022 and built on the success of the previous pilot version of the grant scheme.
Since 2018, the SEAI has supported the installation of domestic solar PV systems for more than 31,789 homes, with demand for the domestic solar PV grant increasing significantly throughout 2022. As part of the transition between schemes, the minimum BER C3 requirement was removed and the eligibility of the homes was changed from those built prior to 2011 to those built prior to 2021. As of the end of August 2023, 12,887 homes have been supported at a total cost of €30.2 million. The total numbers for 2022 have already been surpassed, with the high level of demand expected to continue for the remainder of 2023 and into 2024. This indicates that the scheme is working extremely well and that citizens are recognising the benefits of investing in solar PV.
Aindrias Moynihan (Cork North West, Fianna Fail)
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The figures are very encouraging - an increase in applications of 104%. We know that in 2022, there were 16,800 applications, of which just over 10,000 were supported, generating 46.5 MW of power. With an increase of 104%, How quickly is the Department able to turn around applications? Last year, 10,000 out of 16,800 applications were approved. How many applications is the Department approving and how quickly is it able to approve them? Will it be able to meet the level of demand? Is the funding in place to allow the Department to do that or will it have to seek further funding? Most significantly, because the interest is there and the Department needs to maintain goodwill, is the Department able to turn around those applications quickly enough to allow people to turn from applicants to those receiving grants?
Ossian Smyth (Dún Laoghaire, Green Party)
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One good thing about solar PV is that it is very quick to deploy. It only takes a couple of days to install it and it does not take a lot of experience or training to put up the panels. Obviously, you need a registered electrical contractor to connect it to your system but it is a rapidly deployable technology, which is why 30,000 homes have already received it.
It is not just the 0% VAT rate that causes people to get it. It is also because of the planning permission exemption, the grant you can get and the fact you can sell your power back to the grid. We have no problem with demand. Demand is massively increasing all the time and, so far, we are managing with supply and people are able to get solar panels.
The Department of Education has a project to put a solar panel on every school. A solar revolution is taking place across the country. This is an area of great success for the Government and something that is very visible because it can be seen around the country.
Aindrias Moynihan (Cork North West, Fianna Fail)
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There are very significant challenges and hugely ambitious targets to meet a target of a 51% reduction in overall greenhouse gas emissions for 2030. This is a very constructive and helpful measure in that regard. As the Minister of State noted, being able to sell on the electricity produced, the €200 tax exemption and various other things are all encouraging. Is the Department planning any further improvements in the scheme in the budget? For example, there is a very successful scheme that insulates the homes of more vulnerable people, for example, windows, insulation and draught excluding but it does not involve the installation of solar panels. Is the Department looking at this as an option? Is it looking at further improvements in the scheme based on the level of interest it is seeing?
Ossian Smyth (Dún Laoghaire, Green Party)
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I believe there is already a solar scheme for the medically vulnerable. I do not have the details of the progress of that but it is already being deployed. There will be more solar schemes in the budget and the Deputy is welcome to make any suggestions. The budget has not yet been announced. The schemes will continue to be supported. The public sector is leading by example. I have been working closely with the HSE and expect that it will have solar panels on every one of its buildings. It is the largest sector in the public service with the largest estate and has a requirement for power throughout the year, unlike schools, which are shut in the summer. Solar power is a complement to other forms of renewable generation. On a still day when the wind is not blowing, it is good to have a basket of different electricity sources, which provides resilience for our power system. Earlier this year, I saw the SEAI reported that the amount of solar energy being generated each month was doubling from month to month, so we are seeing a significant contribution to the level of the individual power station to our grid from solar. It is making a significant contribution.