Written answers

Tuesday, 23 May 2023

Department of Communications, Climate Action and Environment

Energy Policy

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats)
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174. To ask the Minister for Communications, Climate Action and Environment the steps he is taking to address the rising cost of materials to install solar panels on private residences and farm buildings; and if he will make a statement on the matter. [24345/23]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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On 5th of April 2023 the Government approved an amendment to Finance Bill 2023. As part of this amendment the Government has agreed to apply a zero percent VAT rate within category 10c which is for the ‘Supply and installation of solar panels on and adjacent to public and other buildings used for activities in the public interest, housing and private dwellings.

My Department has estimated that a zero rate of VAT passed on to consumers would reduce the average cost of the supply and installation solar panels for consumers from €9000 to €8000 and would thus help support households reducing their electricity bills. At €0.32c per KWh, this will reduce the payback period for installation from 7 to 6.2 years.

This is a permanent change that came into effect from 1 May 2023. This measure underlines the Government’s commitment to help households to save money on their energy bills, deal with cost-of-living increases and reduce their carbon footprint and contribute positively to our national climate change targets.

The Micro-generation Support Scheme (gov.ie - Micro-generation (www.gov.ie)) is continuing to prove very successful, following record levels of installations supported in 2022 via the Domestic Solar PV Scheme – operated by the Sustainable Energy Authority of Ireland (SEAI). Currently over 50,000 homes have solar panels, with 17,000 microgeneration installations connecting to the grid taking place just last year.

Grants for Solar PV installation under the Microgeneration Support Scheme are administered by the SEAI led by policy from my Department. Decisions regarding VAT, including this most recent decrease and when and how it is applied, are made by the Department of Finance and the Revenue Commissioners. More information can be found on VAT rates relating to the supply and installation of solar panels here: Revenue eBrief No.105/23

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats)
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175. To ask the Minister for Communications, Climate Action and Environment the steps he is taking to address the issue of the subsea cable to Sherkin Island, which has been out of order since November 2022; and if he will make a statement on the matter. [24346/23]

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats)
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176. To ask the Minister for Communications, Climate Action and Environment if he will adjust the excellence in energy efficient design grant scheme guidelines 2023 to enable SMEs with assets with annual final energy consumption of at least 50,000 kWh to apply; and if he will make a statement on the matter. [24347/23]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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The Sustainable Energy Authority of Ireland support schemes are under regular review to ensure their effectiveness. The Excellence in Energy Efficient Design (EXEED) programme was relaunched in March 2023 to provide projects with increased support to a maximum of €3 million and an improved application process. The Support Scheme for Renewable Heat (SSRH) relaunched in March 2023 will provide for an increase in the support for heat pump installations of up to 40% of costs, subject to state aid approval, and inter alia provides for additional upgrade measures in buildings to facilitate the installation of heat pumps.

The EXEED programme supports high impact investments, where an energy efficient design (EED) process is followed to design out energy consumption and develop high performance projects. The EED process is of most value to larger energy users, as demonstrated by the case studies of EXEED projects that have been delivered. The current threshold of 100,000kWh final energy consumption for EXEED is relatively low in this regard. A new scheme for non-domestic retrofit is in development, aimed at SMEs, which will provide support for a range of measures. The scheme is due to be launched in the coming months.

My Department, through schemes administered by the Sustainable Energy Authority of Ireland, provides various supports to enterprises, which can assist these sectors in increasing their energy efficiency and lowering their carbon emissions. A summary of the existing support schemes administered by SEAI is set out below. There has been a high uptake, in particular, of the community energy grants and the support scheme for energy audits by SMEs.

SEAI Scheme Description
Community Energy Grant Grant support for cross-sectoral projects including homes, businesses and other non-domestic applicants. Typically around 60% of funding is for non-domestic
Support Scheme for Energy Audits (SSEA) Supports SMEs (€2,000 voucher) to carry out professional energy audits and thus encourages implementation of energy saving measures identified.
Large Industry Energy Network (LIEN) SEAI assists the companies on energy improvements. Best practice guidance is shared among LIEN members on how to manage energy performance.
Excellence in Energy Efficiency Design (EXEED) A certified program for a systematic energy efficient approach to design, construction, and commissioning new investments and upgrades at the earliest stages of the business lifecycle.
Support Scheme for Renewable Heat (SSRH) A grant (of up to 30%*) to support investment in renewable heating systems using heat pumps. An operational support tariff over 15 years for new installations or installations that currently use a fossil fuel heating system and convert to using biomass or anaerobic digestion heating systems.
Non-Domestic Microgen Scheme Provides financial assistance to help businesses and other sectors to install solar PV panels to generate electricity on site. Grants are available for systems up to a maximum of €2,400 for installations of up to 6kWp.
Energy Academy Online resource -access to high quality energy training
Energy Contracting Support Scheme Energy Contracting Support Scheme provides supports and expertise across the business and public sectors to deliver energy efficiency through Energy Performance Contracts (EPCs), Local Energy Supply Contracts (LESCs) and Energy Performance Guarantees (EPGs).

*subject to State aid approval

There are a broader range of enterprise supports available that assist businesses with energy and climate initiatives, with funding from a variety of sources (not just SEAI). Further information on the broader supports can be found on the “Climate Toolkit for Business” website: www.climatetoolkit4business.gov.ie/next-steps-and-further-information/.

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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177. To ask the Minister for Communications, Climate Action and Environment if there are restrictions in place surrounding properties that have invested in solar panels to ensure that neighbouring properties cannot plant trees that would block access to sunlight for the solar panels; and if he will make a statement on the matter. [24389/23]

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