Pippa Hackett (Green Party) | Oireachtas source

I thank the Senator for raising this matter. This is a pertinent issue that arises frequently.

I welcome the opportunity to provide an update on solar applications for farmers under TAMS. TAMS is an on-farm investment scheme co-funded by the EU. Under the current EU regulations and the new CAP strategic plan, it is not permitted to sell excess energy generated by grant-aided investments to the grid. Energy generated can be consumed only on the holding. That is the nature of the grant.

The solar photovoltaic, PV, systems currently grant-aided under TAMS include solar PV panels and solar PV rechargeable batteries and solar panels – solar thermal – for water heating under the pig and poultry capital investment scheme. An on-farm solar PV survey must be completed and submitted with the application to quantify the holding’s electricity power requirement and the planned electricity supply from the proposed development. Again, we are aligning the installation of panels with consumption on the farm because that is the intent of the grant under the TAMS. An application may be rejected or amended if the applicant cannot demonstrate that all of the electricity produced from the PV panels will be consumed on the agricultural holding. As such, any applicant under the TAMS will not, when generation is averaged over the year, have excess electricity to sell to the grid. It is balanced with the delivery of power from the solar panels.

My colleague the Minister, Deputy McConalogue, recently announced on foot of the budget that the electricity consumption of the dwelling house can now be included with immediate effect on the solar survey as part of the holding for sizing the solar PV installation. The dwelling house must be occupied by the herd owner or family member and situated on the holding. This is now open for application.

It is interesting to note that solar investments were initially included only in the pigs and poultry investment scheme launched in August 2015 and were subsequently added to the remaining TAMS on a pilot basis in 2019. It is very useful and has been well subscribed. To date, my Department has paid grant aid to 161 beneficiaries in respect of solar installations on farms. The maximum size of panels eligible for grant aid currently is 62 kW for the pig and poultry scheme and 11 kW for all other eligible TAMS II schemes.To encourage further increased uptake in solar applications, my Department is proposing to make further changes to the scheme. This includes increasing the kilowatts for solar applications in TAMS 3 to 30 kW from 11 kW currently. This will bring in more high-energy intensive farms and cover their ever-increasing electricity usage and costs through on-farm generation.

We are also retaining the current limit of 62 kW remaining for the pigs and poultry investment scheme. It is proposed that the grant rate will increase to a 60% grant and a stand-alone investment ceiling of €90,000 for solar panels on farms from 2023 onwards. In a time of rising energy costs, the scheme will enable every farmer to generate their own power for their dwelling and holding, and will help to achieve a more sustainable rural economy, assisting farmers in reducing energy costs on their holdings. The changes are subject to approval of the rural development plan, RDP, amendment by the European Commission. The amendment is currently with the monitoring committee of the RDP for its views before its formal submission to the Commission.

TAMS is not the only option for farmers. There are other State supports for the installation of solar panels, including from the Sustainable Energy Authority of Ireland, SEAI, and farmers should examine all options for support. Panels can be installed in tandem with the TAMS investment. For those farmers who wish to do this at scale, this is a further option for those keen to explore renewable energy generation which can be sold into the grid.