Michael Lowry (Tipperary, Independent)
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194. To ask the Minister for Finance if a full tax exemption for any income earned from excess residential solar microgeneration provided back through the National Grid can be explored, given that such a tax exemption would incentivise households to migrate to renewable energy options, such as solar PV; and if he will make a statement on the matter. [9293/23]

Michael McGrath (Cork South Central, Fianna Fail)
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S. 216D Finance Act 2021 provides for a tax disregard in respect of personal income received by households who sell residual electricity from micro-generation back to the national grid. From 1 January 2022 an income disregard of up to €200 per year applies to profits or gains arising to a qualifying person from the micro-generation of electricity. The measure will operate for an initial period of three years with a sunset clause applying at the end of 2024.

The aim of the measure is to remove a potential administrative barrier to entry to the Department of the Environment, Climate and Communications' Micro-generation Support Scheme. The €200 disregard was set to ensure that the majority of domestic renewables self-consumers, who typically have an installation of below 6kW, will pay no tax on income from this source.

In designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible, consistent with the overall policy intention behind the measure, and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources.

Decisions regarding taxation measures are usually made in the context of the annual Budget and Finance Bill process. Such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines.

I currently have no plans to amend this measure.