Seanad debates

Thursday, 4 May 2023

Nithe i dtosach suíonna - Commencement Matters

Business Supports

9:30 am

Photo of Josepha MadiganJosepha Madigan (Dublin Rathdown, Fine Gael) | Oireachtas source

I am taking this Commencement matter on behalf of the Minister, Deputy Ryan. I will first outline the microgeneration support scheme which provides grants for the installation of solar photovoltaic, PV, panels up to 6 kW. I will then outline the supports available to businesses under this scheme. The Government approved the microgeneration support scheme on 21 December to support 330 MW of new microgeneration capacity by 2030 under the climate action plan. This was based on connecting 60,000 homes and 9,000 non-domestic installations, such as businesses and community groups. The scheme was designed to provide support to domestic and non-domestic applicants for renewable installations up to 6 kW.

These applicants are also eligible to avail of the clean export guarantee tariff. This tariff represents a key aspect of a comprehensive enabling framework for micro- and small-scale generators in Ireland, which allows them to receive payment from their electricity supplier for all excess renewable electricity they export to the grid, reflective of the market value of the electricity. The clean export guarantee tariff rates currently range from 13.5 cent per kWh to 21 cent per kWh. The guarantee became available on the transposition of Article 21 of the renewable energy directive into Irish law on 15 February 2022, to both new and existing micro- and small-scale generators.

Following the initial launch of the domestic solar PV scheme in February 2022, the second phase of the microgeneration support scheme commenced on 22 September 2022, when the SEAI extended solar PV grants to the non-domestic sector, including schools, businesses, small farms and community enterprises, for installations up to 6 kW. Consequently, businesses can now apply to the SEAI for a grant towards the cost of installing solar PV equipment. Grants are currently €900 per kW up to 2kW, and a further €300 per kW between 2 kWe - I am not 100% sure what that stands for - and 4 kWe, for a total maximum grant amount of €2,400. Non-domestic applicants within this range will also be eligible to apply for the clean export guarantee.The guarantee, alongside maximising the consumption of self-generated renewable electricity, will provide the most benefit in the context of offsetting rising electricity costs, as well as shortening the payback period for the microgeneration investment. The Department is also developing the small-scale generation scheme for generators above 50 kW to support the deployment of rooftop and ground-mounted solar PV in cohorts that are not as suited to other support measures, such as the renewable electricity support scheme. That scheme is expected to be launched this year.

I again thank the Senator for raising this important topic. I welcome the debate. The Senator referred to savings. It should be noted that a typical domestic customer with a 2.1 kW solar PV installation comprising seven solar PV panels that cover approximately 12 sq. m of roof space can expect to save in the region of €200 per annum by consuming 60% of the self-generated electricity. They could also expect to be paid in the region of €90 per annum for exporting 40% of their generated electricity to the grid on the basis of a clean export guarantee of 13.5 cent per kilowatt hour.

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