Garret Ahearn (Fine Gael)
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I thank the Minister of State for being here. The reason I tabled this Commencement matter is that there are an awful lot of businesses in County Tipperary that, over the past year, have tried to look at ways to change their business expenditure and reduce costs. Obviously energy costs have been a significant challenge for businesses over the past year. It is worth noting, and I know the Minister, Deputy McGrath, said it in an interview a couple of days ago, how the wholesale costs of energy have dramatically reduced, but the costs on businesses and homeowners have not reduced to the same level at all yet. It is quite striking how long that takes, when one looks at how quickly costs went up.

The reason I ask the Department of the Environment, Climate and Communications to look into this matter is that is a long-term investment businesses can make, where they can get the potential investment back within five years. It used to take about seven years, but now they will be able to get that back within five years. Most businesses do not have a massive cash flow to be able invest in an awful lot of things. What they need to do much of the time is invest in and grow their own business and buy stock, if that is what they are doing. Most businesses do not have the capability to find €50,000 or €60,000 to put up solar panels. I know two businesses in County Tipperary that have spent more than €50,000 in the past six or nine months on solar panels to reduce their energy costs, but they had to fork out all of that money and they got no support whatsoever from Government; zero.

The most frustrating thing businesses find is that we are giving grants through the Sustainable Energy Authority of Ireland, SEAI, of up to €27,000 to homeowners to retrofit their houses through insulation, solar panels and a range of other options and the State will pay 40% of the costs for farmers willing to invest in solar panels and yet there is nothing for businesses. The changes this would make for businesses in the area I am from would be significant.

If ever it comes to a point where the Department of the Environment, Climate and Communications decides to bring this measure in, it needs to be retrospective. Many businesses have made changes in 2022, as part of a long-term investment of reducing their bills. They should not be penalised if Government is slow in bringing in a scheme to support businesses, just because they were early to change to their ways. I ask that we look at some way of supporting businesses. This is essentially meeting our EU obligations with regard to climate change. I do not see any reason the Minister or the Department could not be supportive of it. If we are willing to support homeowners and farmers, why would we not be willing to support businesses? The Department needs to play a leading role in this to support businesses. I know of two businesses in particular that are putting themselves under considerable pressure with the amount of money they have invested in solar panels. They have to risk other areas of their businesses just to be able to do so. I ask that the Minister and the Department take this matter seriously.

Josepha Madigan (Dublin Rathdown, Fine Gael)
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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.

Garret Ahearn (Fine Gael)
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I thank the Minister of State and the Department for the response. I welcome the fact that the Department is developing a small-scale generation scheme for generators above 50 kW to support the deployment of rooftop and ground-mounted solar PV. That is really significant. The Minister of State indicated that the scheme is expected to be launched this year. I hope that will be done as quickly as possible, because I have talked about energy supports for up to 50 kW at least.

When I say that businesses get no supports, I mean they get a little bit of support in the form of €900 for up to 2 kW. The latter is not enough energy to boil a kettle. I am talking about businesses such as supermarkets or butchers so have high energy costs and are willing to invest in solar panels to reduce their cost but need that support from the State. The scheme is supposed to be set up this year. We are already more than one third of the way through the year. I ask the Minister of State to ask the Department of the Environment, Climate and Communications if it would engage with me and, in particular, with businesses in rural areas like County Tipperary on this matter.

Josepha Madigan (Dublin Rathdown, Fine Gael)
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There is 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. As I said, that scheme is expected to be launched this year.

I thank the Senator for raising this important topic. There are grant supports for businesses that are willing to install solar PV. Those grants are currently available for installations of up to and including 6 kW. These supports have been made available through the microgeneration support scheme. As I mentioned, the Government approved the microgeneration support scheme on 21 December 2021 to support 380 MW of new microgeneration capacity by 2030 under the climate action plan. This amounts to 60,000 homes and 9,000 non-domestic installations.

I will bring the Senator's request back to the Minister for the Environment, Climate and Communications and ask him to engage with the Senator on the matter.