Patrick Costello (Dublin South Central, Green Party)
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197. To ask the Minister for Communications, Climate Action and Environment if he will make a grant available for the installation of batteries as part of a residential solar panel system; and if he will make a statement on the matter. [27609/23]

Eamon Ryan (Dublin Bay South, Green Party)
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The Sustainable Energy Authority of Ireland (SEAI) who administer Domestic Solar PV grants under the Microgeneration Support Scheme (MSS), conducted a review of previous battery grants that had been available prior to the implementation of the MSS and found that given the current high cost of batteries, coupled with their low storage capacities and their relatively short lifespan (currently in the region of 10 years), that a stand-alone battery grant did not represent efficient use of Exchequer funds.

The current grant rate of up to €2,400 under the Domestic Solar PV scheme, is based on the kWp size of the installed solar PV system and does not prevent an applicant from installing a battery or other such energy storage solution, such as a hot water diverter.

Furthermore, since 1 May 2023, the VAT rate for solar panels and ancillary equipment has been reduced to 0%. This reduction means that the cost of solar pv equipment, including batteries that are installed alongside the solar panels as part of the same supply and install contract, are now significantly reduced.

Additionally, the introduction of the Clean Export Guarantee (CEG) ensures that?any residual renewable electricity not consumed on the premises is now eligible for an export payment which further supports the investment.

It should also be noted that the Government offers supports to deliver on the target of 1 million Electric Vehicles (EV) to be deployed by 2030. EV batteries have significantly higher capacities than a typical domestic battery storage solution for Solar PV systems. Moreover, with the ongoing development of smart energy technology such as Vehicle to Grid charging, it is expected that in the near future EV batteries will be used to store excess micro-generated electricity during the day and provide electricity after daylight, which could represent a good investment for householders.

Patrick Costello (Dublin South Central, Green Party)
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198. To ask the Minister for Communications, Climate Action and Environment if he will consider increasing the maximum grant available for the installation of residential solar panels; and if he will make a statement on the matter. [27610/23]

Eamon Ryan (Dublin Bay South, Green Party)
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The Government’s Micro-generation Support Scheme (MSS) is targeting 380MW of new renewable generation capacity to contribute to an overall revised target for solar PV of up to 8GW by 2030, under the Climate Action Plan 2023. The scheme design was supported by detailed economic and policy analysis, as well as public consultation, prior to its approval in December 2021.

Grants are currently available through the Sustainable Energy Authority of Ireland (SEAI) for domestic installations, up to a maximum of €2,400. Since the introduction of the MSS domestic grant in February 2022, the SEAI have seen application levels rise sharply. In 2022, the SEAI received 16,819 applications to the Domestic Solar PV programme, which resulted in grant support for 10,018 homes, at a cost of €24.4m and a total installed capacity of 46.5 MW. This indicates an average installation size of 4.6kW. This is a significant increase from 2021 when 4,077 homes received grant support, with 16.3 MW capacity installed. Moreover, current projections for 2023 indicate an even higher level of applications will be supported.

While this very high level of interest indicates that the current design of the MSS is working well, its operation and effectiveness will be kept under review and adjustments made where necessary. However, there are currently no plans to increase the maximum grant available for the installation of residential solar panels.

It should also be noted that maximising consumption of self-generated electricity will provide the most benefit to offset rising electricity costs and shorten the payback period for the investment in the installation of solar panels. Additionally, the Clean Export Guarantee (CEG) tariff is now available from all electricity suppliers, offering the opportunity for remuneration for excess renewable electricity exported to the grid.