Dáil Éireann Debate, Tuesday - 27 June 2023
118. Deputy John Lahart asked the Minister for the Environment, Climate and Communications if he will consider increasing the size of the SEAI solar PV grant KW/PH rate in order that consumers can avail of larger solar units but drawdown the maximum €2,400 grant; and if he will make a statement on the matter. [30787/23]
View answerThe 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 23. 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, at the rate of €900/kW up to 2kW, and a further €300/kW between 2kW and 4kW, up to a maximum of €2,400. It should be noted that there is no limit on the size of installations for households, with the maximum grant of €2,400 available for any installation greater than 4kW.
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 functioning well, its operation and effectiveness will be kept under review and adjustments made where necessary.
The recent reduction in the VAT rate to 0% on the supply and installation of solar PV panels on homes, in effect since 1 May 2023, will benefit all households looking to install solar PV. This reduction brings the average solar PV installation cost down by up to €1,000, as well as shortening the average investment payback period and reducing the cost of any additional 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, of up to €24c/kwh, offering the opportunity for remuneration for excess renewable electricity exported to the grid.
