Darren O'Rourke (Meath East, Sinn Fein)
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197. To ask the Minister for Communications, Climate Action and Environment if he will provide an update on the forthcoming introduction of a 0% VAT rate on the supply and installation of solar panels; and how the VAT will be treated with respect to the current grant offering. [17316/23]

Eamon Ryan (Dublin Bay South, Green Party)
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There are a wide range of capital supports funded by my Department and administered by the Sustainable Energy Authority of Ireland (SEAI). The Micro-generation Support Scheme (MSS) provides capital grants through the SEAI for both domestic and non-domestic applicants (under the Domestic and Non-Domestic Solar PV schemes respectively) for Solar PV installations up to 6.0kW, primarily for self-consumption. Grant amounts are €900/kW up to 2kW and an additional €300/kW between 2kW and 4kW; which brings total grant levels up to a maximum of €2,400.

The grant awards are based on the size of the installation, not on the costs. Moreover, the grants are applied for by the applicant and are paid directly to the applicant. As such, the recent announcement of a 0% VAT rate on the supply and installation of solar panels does not impact on the current grant offering.

However, it is expected that the new 0% VAT rate will be of significant benefit to homeowners, as it will reduce the average cost of a domestic solar PV installation by approximately €1000. This is a permanent change that will come into effect from 1 May 2023. This measure underlines the Government’s commitment to help households to save money on their energy bills and reduce their carbon footprint and contribute positively to our national climate change targets.

Richard Bruton (Dublin Bay North, Fine Gael)
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198. To ask the Minister for Communications, Climate Action and Environment whether the changes announced in the Policy Statement on the Framework for Phase Two Offshore Wind will hinder the progress of offshore wind projects in Ireland [17331/23]

Eamon Ryan (Dublin Bay South, Green Party)
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The Policy Statement on the Framework for Phase Two Offshore Wind approved by Government aims to accelerate the delivery of 5 GW of offshore wind by 2030, as well as the wider Climate Action Plan objective of achieving 80% renewable electricity by the end of this decade.

Under Phase Two, offshore renewables capacity will continue to be procured through the Renewable Electricity Support Scheme (RESS), with the size and regularity of auctions required to meet the 5 GW target to be determined by onshore grid and marine spatial constraints, and the outcome of Phase One. Phase Two auction participants will compete for supports to develop offshore wind capacity within Offshore Renewable Energy (ORE) Designated Areas, which will be designated according to legislative provisions for Designated Maritime Area Plans (DMAPs) in the Maritime Area Planning Act 2021.

The location of Phase Two ORE Designated Areas will be geographically aligned with available onshore grid capacity, in addition to being informed by environmental considerations. By aligning with and maximising scarce available onshore grid capacity, the designation of ORE Designated Areas will expedite future delivery of offshore wind, while ensuring that development is managed in a planned, strategic and sustainable way. This approach will further provide additional certainty for investment in Ireland’s offshore renewables sector due to enhanced project delivery prospects.

Emer Higgins (Dublin Mid West, Fine Gael)
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199. To ask the Minister for Communications, Climate Action and Environment if he has considered introducing age-related grants for solar panels for houses of elderly people in a bid to combat both fuel poverty and climate change; and if he will make a statement on the matter. [17352/23]

Eamon Ryan (Dublin Bay South, Green Party)
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The Micro-generation Support Scheme (MSS) provides capital grants for Solar PV through the Sustainable Energy Authority of Ireland (SEAI). Applications for the Domestic Solar PV grant scheme saw record levels in 2022, with over 10,000 applicants supported. While this level of interest indicates that the MSS is working well, its operation and effectiveness will be kept under review and adjustments made where necessary.

SEAI are also currently finalising a scheme to provide Solar PV to vulnerable customers registered as being dependent on electrically powered assistive devices. This €20m scheme is targeted to provide direct support to over 3,000 vulnerable customers who may have limited opportunity to reduce their demand.

There are also supports already in place for vulnerable customers. As part of its statutory role, the CRU sets out a number of rules for suppliers to follow in the Electricity and Gas Suppliers Handbooks. These include special provisions for vulnerable customers around areas such as billing and disconnections. ‎ ‎These include:

‎‎Extended debt repayment periods

Reduced debt burden on pay-as-you-go top-ups

‎Better value for those on financial hardship meters

‎Promotion of a Vulnerable Customer Register ‎

‎A vulnerable customer is defined as a household customer who is critically dependent on electrically powered equipment, which includes, but is not limited to, life protecting devices, assistive technologies to support independent living and medical equipment. This category of vulnerable customers cannot be disconnected for non-payment at any time. Vulnerable customers are also defined as those who are particularly vulnerable to disconnection during the winter months for reasons of advanced age or physical, sensory, intellectual, or mental health. It is important that people who are in such a situation contact their energy supplier to register with them as a vulnerable customer. Their electricity supplier will then notify ESB Networks. ESBN maintains a Vulnerable Customer Register based on the information provided to them by suppliers.