Dáil Éireann Debate, Wednesday - 28 June 2023
26. Deputy Brendan Howlin asked the Minister for the Environment, Climate and Communications if he will set out the grants and other assistance available to owners of new houses who wish to make their homes more energy efficient by installing solar panels; if new homeowners are entitled to grant assistance to install solar panels; and if he will make a statement on the matter. [31526/23]
View answerAs part of the Government’s Micro-generation Support Scheme (MSS), the Domestic Solar PV Scheme is operated by the Sustainable Energy Authority of Ireland (SEAI) and is open to houses built prior to 2021. The scheme has been designed this way as new buildings must already comply with higher standards than older buildings.
New-build houses must comply with Part L of the Building Regulations, which relates to the energy performance of buildings requirements. There are options to meet this required standard by installing energy efficiency technology including heat pumps and/or solar PV. However, SEAI grants are not targeted at meeting building compliance requirements. Installing such technology while a building is being constructed is generally cheaper than installations on existing buildings and would not warrant grant support from limited Exchequer funding. Targeting the residential solar PV grant scheme at older homes ensures that the grants available through the SEAI maximise emission reductions and deliver energy savings for the widest range of homeowners possible.
It should be noted that the reduction in the VAT rate to 0% on the supply and installation of solar PV panels on homes and public buildings, in effect since 1 May 2023, will benefit all households looking to install solar PV, including those with new homes, who are ineligible under the SEAI scheme. This reduction will ensure a saving of approximately €1,000, bringing the average €9,000 cost for installation down to €8,000, and reducing the average payback period from 7 to 6.2 years (at €0.32c per KWh).
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 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.
