Written answers

Tuesday, 16 January 2018

Department of Communications, Climate Action and Environment

Renewable Energy Incentives

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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1284. To ask the Minister for Communications, Climate Action and Environment the grants and support schemes that are available to new companies in the renewable energy sector; and if he will make a statement on the matter. [1044/18]

Photo of Denis NaughtenDenis Naughten (Roscommon-Galway, Independent)
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There are a number of grants and support schemes which enable companies to choose renewable energy options.  In addition to benefiting the companies availing of these programmes and schemes, the resulting increased demand for renewable energy and energy efficient technologies also benefits the companies which supply these products and services. The Accelerated Capacity Allowances scheme is a tax incentive whereby businesses can offset the cost of investment in qualifying energy technologies against their tax liabilities in year one rather than over eight years, thus aiding their cash flow.  The scheme currently covers 10 different equipment categories and 52 associated technologies.  This includes renewable energy technologies such as wind turbines, photovoltaic systems, biomass boilers and solar thermal collectors.

The Excellence in Energy Efficient Design programme provides advice and support leading to certification for businesses to establish a systematic approach to design, construction, and commissioning processes for new investments and upgrades to existing assets.  This scheme has delivered impressive efficiency improvements in recent years.  Results achieved over the 2016-17 period show average energy efficiencies of 28% being achieved. 

The Better Energy Communities programme is open to applications that include businesses. Under this scheme, community based partnerships can apply for funding to upgrade the energy performance of a range of homes, community facilities and businesses in a local community.  As well as energy efficiency measures, renewable technologies such as solar panels are supported under this scheme. The scheme has supported more than 300 community energy projects over the last five years throughout the country. There is €28 million available in grant supports for community energy projects under the 2018 scheme. The closing date for applications is 26 January 2018.

Budget 2018 contained a package of measures to support the increased deployment of electric vehicles.  One of those measures aimed specifically at businesses is the new Benefit-in-Kind 0% rate to incentivise EVs without mileage conditions with the stated intention of continuing the incentive for a minimum of three years.  The rules will also ensure that there is no Benefit-in-Kind liability associated with recharging electric vehicles in workplaces.  In addition, the Electric Vehicle Public Engagement Programme currently being developed by the SEAI will include commercial fleet trials as well as an awareness campaign to highlight the benefits of electric vehicles and the supports that are available.

My Department is developing a new Renewable Electricity Support Scheme which will be designed to assist Ireland in meeting its renewable energy contribution to EU-wide targets out to 2030. The design of the new scheme has included an extensive independent economic appraisal. This appraisal compared the cost of supporting a range of commercial renewable technologies, including Solar PV, Anaerobic Digestion, Wind Energy at various scales including small and micro-generation, to ensure that the new scheme delivers value for money for energy users whilst also delivering on the energy pillars of sustainability and security of supply. The assessment also included analysis of the optimum financial support mechanisms for renewable technologies, in line with the 2014 EU State Aid Guidelines.

I recently announced the planned introduction of a Support Scheme for Renewable Heat.  The scheme is designed to financially support the replacement of fossil fuel heating systems with renewable energy for commercial, industrial, agricultural, district heating, public sector and other non-domestic businesses.  The scheme will consist of two types of support mechanism – an operational support (paid for up to 15 years) for biomass heating systems or anaerobic digestion heating systems; and a grant to support investment in renewable heating systems that use heat pumps.  The scheme will contribute to meeting Ireland’s renewable energy and emission reduction targets.  In addition, by providing a market for crops such as biomass and waste products from forestry, agriculture and food production, the Support Scheme for Renewable Heat presents a key opportunity for the domestic bioenergy sector.  This will have significant benefits for farmers, foresters and rural communities.

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