Joint Committee on Agriculture, Food and the Marine publishes its report on Solar Energy and the Agricultural Industry

Launching the report, Committee Cathaoirleach Deputy Jackie Cahill said: “The Climate Action Plan sets a goal of increasing ‘the proportion of renewable electricity to up to 80 per cent by 2030’, key aspects of which relate to microgeneration. The adoption and deployment of solar technology on farms has been identified as a key element in meeting these targets given its potential to offset input costs and act as a revenue generator, enhancing family farm incomes.”

Deputy Cahill added: “The Climate Action and Low Carbon Development (Amendment) Act 2021 sets a target of reducing emissions by 51 per cent against 2018 levels, while a sectoral ceiling of 25 per cent has been set specifically for the agricultural sector.”

Deputy Cahill said: “Though the benefits of adopting renewal energy on farms will largely be attributed to the energy sector in terms of sectoral accounting, it is an area where farmers can play a positive role and have an important impact, in line with the AgClimatise target of achieving a 20 per cent reduction in agricultural energy use and generating at least 20 per cent deployment of renewable energy technologies.”

Report Rapporteur Deputy Matt Carthy said: “Family farmers across this State currently face a series of challenges. While these challenges have the potential to place additional negative pressures on family farm incomes (FFI), the adoption of on-farm solar energy production technology presents an opportunity to both enhance FFIs and contribute positively to Irelands emission reduction obligations.”

Deputy Carthy added “This report outlines the key areas where reform is required to incentivise and deliver widespread adoption, with a primary focus on ensuring that the regulatory process is as streamlined and minimalistic as possible; that farmers are able to fully take part in all micro-generation schemes and maximise their returns; and that the taxation regime be optimised to incentivise investment and adoption today.”

Deputy Carthy said: “The Committee believes that by adopting the recommendations of this report, government can best encourage widespread adoption and the production of renewable energy for generations to come, while at the same time improving FFIs and increasing the viability of our family farms.”

Read the full report Solar Energy and the Agricultural Industry on Oireachtas.ie

Key recommendations of the report include:

1. The Committee recommends that it should be a target of government to ensure that that every appropriate farm building has solar panels installed in support of our 2030 emission reduction targets. Further, the Departments of Agriculture, Food and the Marine and the Environment, Climate and Communications should be charged with developing a comprehensive strategy to meet this goal.

2. The Committee recommends that the Departments of Agriculture, Food and the Marine and the Environment, Climate and Communications should enter into dialogues with electricity companies and financial institutions with a view to identify whether a scheme can be devised whereby all upfront costs in relation to the installation of Solar PV on farm buildings can be offset and repayable either through low-interest loans or via a tariff on the excess electricity generated and sold to the national grid.

3. The Committee believes that a complex regulatory framework and disparate departmental responsibility over aspects of on-farm solar relating to regulation, microgeneration, and supports has resulted in a lack of transparency in relation to levels of adoption and the success of overall government policy in achieving such. The Committee recommends that the Department of Agriculture, Food and the Marine establish and co-ordinate a cross-departmental One-Stop-Shop to: • inform and encourage farmers as to opportunities to adopt solar energy technology at all scales; • collate related data; • adopt a solar energy target specific to the agricultural sector; and • report to government on the progress of its work.

4. The Committee recommends that the Department of Housing, Local Government and Heritage proceed as a matter of urgency regarding proposals to exempt solar panels on farm buildings from requiring planning permission, with a view to enacting an exemption without delay.

5. The Committee recommends that the SEAI establish a dedicated scheme in support of farmers adopting solar technology.

6. The Committee is concerned that a consultation paper in relation to the development of private networks/direct lines which was due in Q1 of 2022 remains unpublished. The Committee recommends this be published as a matter of priority, and that the Department of the Environment, Climate and Communications provide the Committee with an indicative timeline of their intention to introduce reforms in this area, and provide for direct line connections.

7. The Committee recommends that the Departments of Agriculture, Food & the Marine and Environment, Climate & Communications consider the establishment of a new dedicated scheme to provide for battery or alternative storage measures in the case of Solar PV installed on agricultural buildings.

8. The Committee recommends that the Department of the Environment, Climate and Communications examine the potential of delivering a mechanism whereby farmers are able to store excess electricity generated through the national grid, receiving a comparative amount of energy or credit in return as needed.

9. The Committee recommends that the Department of Finance conduct an appraisal as to the performance of the 50 per cent limit on total land area used for the installation of solar panels limit with regard to CAT relief. The Committee further recommends that specific consideration is given to the manner in which land area is calculated, and that the existing framework in relation to the Basic Payment Scheme would provide a suitable alternative cognisant of the Department of Finance’s concerns as to ensuring that the relief remains available only to active farmers.

10. The Committee notes that supports under the MSS are intended to gradually reduce over time from 2024 based on reaching specific deployment milestones, with supports for new installations being phased out from 2028. The Committee recommends that the VAT on such products be reviewed in the intervening period.

Read more about the work carried out by the Joint Committee on Agriculture, Food and the Marine.