Tom Neville (Limerick County, Fine Gael)
Link to this: Individually | In context | Oireachtas source

668. To ask the Minister for Agriculture, Food and the Marine if 70% of the land needs to be retained for entitlements when using solar panels; if solar farming will be taxed or if it will come under renewal such as in circumstances which apply with regard to forestry; the amount of land a person has to retain to keep the single farm payment if using some land for solar panels; and if the Minister will make a statement on the matter. [17744/17]

Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Support under the Basic Payment Scheme (BPS) is payable upon activation of an eligible hectare per payment entitlement. In general terms an eligible hectare is one that is used for an agricultural activity or, where the area is also used for a non-agricultural activity, is predominantly used for such activities. An area is predominantly used for agricultural activity if that activity can be exercised without being significantly hampered by the intensity, nature, duration and timing of the non-agricultural activity.

While cases involving solar panels will be examined on an individual basis, it is currently envisaged that the area covered by the solar panels will be deemed ineligible for the purposes of claiming BPS. Furthermore, in line with the Department’s current approach on land eligibility, where the area of a parcel covered by solar panels is 70% or greater of the overall parcel, that parcel will be wholly ineligible. If less than 70% is covered by solar panels and the agricultural activity is not hampered by the presence of the solar panels, the area not covered by solar panels may be eligible.

With regard to entitlements it is important to note that a farmer must use all entitlements every 2 years. Therefore if the land is deemed ineligible for BPS the farmer would lose the entitlements after 2 years unless he (a) got more land (b) leased out his entitlements or (c) sold the entitlements.

It is also worth noting that all agricultural land used to claim BPS must be owned/leased, used and managed by the applicant. If the applicant is not the owner of the land, they must have a lease or rental agreement in place with the owner of the land. There must be independent and suitable access for animals and/or machinery for the farming enterprise being conducted. Independent access means access by public or private roadway or by a defined right of way. Access over adjoining landowners land, or over land which is subject to a lease or rental agreement to another person, is not acceptable. 

With regard to taxation it is primarily an issue for my colleague the Minister for Finance. An inter-departmental committee, including representation from my Department, is currently considering the taxation implications of the installation of solar panels on farmland, with a view to achieving clarification on various issues from the Department of Finance and the Revenue Commissioners later this year.