Dáil Éireann Debate, Thursday - 27 September 2018
175. Deputy Brian Stanley asked the Minister for Communications, Climate Action and Environment his plans to examine the reason electricity companies do not give credits or payments for excess electricity generated by solar panels on individual homes in view of the fact that in Northern Ireland home owners receive credits; the steps that can be taken to address this difference; and if he will make a statement on the matter. [39143/18]
View answerSince February 2009 Electric Ireland had offered a feed-in-tariff on a commercial basis to domestic micro generators. They have extended the scheme payments on several occasions since then and last year they decided to continue payments up until the end of 2018. No other electricity supplier has chosen to provide such a tariff, to either domestic or commercial customers, although they have been invited to do so by the Commission for the Regulation of Utilities (CRU). Responsibility for the regulation of the electricity and gas markets is a matter for the CRU, which is an independent statutory body. Last year, my Department assessed micro generation, across a number of renewable electricity generating technologies, as part of the economic analysis to underpin the new Renewable Electricity Support Scheme (RESS). The assessment identified technical and financial challenges which may need to be addressed before a broader support scheme for micro generation can be introduced. This is in line with international and EU experience, where many member states who have introduced supports for micro generation have had to reform them or cancel them altogether. In March 2017 the UK Government closed down the Renewables Obligation (RO) Scheme to new applicants. Under the RO scheme generators (including homeowners and farmers across Northern Ireland) received payment for each unit of electricity they produce from solar PV. Interestingly, prior to closing the scheme, the UK Government had reduced the generation tariff from 16p per unit of electricity generated, to 12p and finally down to 8p.
The reality is that bringing micro generation onto a system designed for large generators is complicated. It impacts how we pay for the network, how we manage regulation and how we technically manage the system.
In July, I announced details of a new pilot scheme to support micro generation, initially targeting solar PV, homeowners and self-consumption. The data gathered during the pilot scheme will inform potential future phases of support for micro-generation in Ireland that may be appropriate, as we align with the ambition and requirements of the recast Renewable Energy Directive (RED) that recognises the rights, entitlements and obligations of renewable self-consumers.
My Department is continuing to work closely with the micro-generation sector and the Sustainable Energy Authority of Ireland (SEAI) to better understand how to validate and further develop these policies in a fair and cost effective manner.
