Dáil Éireann Debate, Thursday - 16 November 2023
96. Deputy Ivana Bacik asked the Minister for the Environment, Climate and Communications if he intends to introduce a grant for home battery storage systems linked to the installation of solar panels; if he has asked the SEAI to carry out a further assessment of advances in the technology; if he intends to do so; and if he will make a statement on the matter. [50386/23]
Amharc ar fhreagraThe Solar PV grant scheme under the Micro-generation Support Scheme (MSS) is administered by the Sustainable Energy Authority of Ireland (SEAI). The scheme came into operation in February 2022 and built on the success of the previous pilot version of the grant scheme.
At that time, SEAI assessed the possibility of continuing the previous domestic battery grant under the MSS but found that given the high cost of batteries and the impending introduction of the Clean Export Guarantee, making any residual renewable electricity not consumed on the premises eligible for an export payment, that a stand-alone battery grant did not represent efficient use of limited Exchequer funds. Micro-generation installations which include battery storage systems are still eligible for grant support and there is now no need to install a battery in order to avail of the maximum grant. Moreover, since 1 May 2023, a zero rate of VAT has applied to the supply and installation of Solar PV systems. At this time, Government ensured that this zero rate of VAT is also applicable to any ancillary equipment installed as part of the same contract of works, including battery storage systems; which supports the installation of batteries where consumers make that choice. The Government also offers supports to deliver on the target of 1 million Electric Vehicles (EV) to be deployed by 2030. It should be noted that the battery in EVs is of a higher capacity than a typical domestic battery storage solution for micro-generation. In the future, it is expected that EV batteries will play an important part in electricity demand flexibility services, whereby they are used to store excess micro-generated electricity during the day and provide electricity to the home or the grid after daylight, and this could represent a better investment for the householder. The high levels of interest in solar PV grants since 2022 suggests the MSS is working well. However, a mid-scheme review of the MSS is currently underway, which will assess the effectiveness of both the scheme’s eligibility criteria and how the domestic solar PV grant operates. Any changes to grant support available under the MSS will be announced in due course.
