There has been a mixed reaction to measures announced in Budget 2024 from the solar PV industry.

Among the key measures included in the budget was a doubling of the tax disregard for electricity sold back to the grid from small solar PV systems. This means €400 can be earned tax-free when exporting electricity to the grid.

There will also be a new low-cost loan scheme to encourage renewable investment, while the zero percent VAT rate for solar equipment has been extended to schools.

Accelerated capital allowances for businesses that invest in renewable energy installations has also been extended for a further two years.

The Government also committed to setting up a new €14bn infrastructure, climate and nature fund, but details of what this actually entails have yet to come.

Solar farm tax barriers

The Irish Solar Energy Association (ISEA) has said that while Budget 2024 contains some welcome measures, the commitments to address climate change lack urgency and fail to deliver meaningful action.

Responding to Budget 2024, ISEA CEO Conall Bolger was severely critical of the failure to remove tax barriers that prevent farmers from leasing land for solar developments.

“Central to Ireland’s decarbonisation plan is the Government’s own stated ambition to develop 8GW of solar energy by 2030.

"This will require approximately 25,000 acres of solar farms within this decade and making this a reality will require the co-operation of farmers across the country,” he said.

“All farming families are conscious of tax exemptions to allow land to be passed on to the next generation without punitive tax bills. Inexplicably, this does not apply in instances where more than 50% of land is utilised by solar panels,” Bolger said.

“We had expected the Government to remove this arbitrary rule that punishes farmers who engage in renewables and is significantly reducing the availability of land for solar,” he said.

MREF reaction

Commenting on the Budget, Micro-Renewable Energy Federation (MREF) chair Pat Smith said: “The doubling of the tax disregard in respect of payments to homes for renewable energy exported to the grid to €400 is a hugely positive measure.

“Also, extending accelerated capital allowances to businesses for renewable energy installations for a further two years will be important in helping businesses fund their renewable energy investments,” he said.

Anaerobic digestion

Smith said that there was disappointment that there was no reference to anaerobic digestion in the budget speech and said that clarity is urgently required around the development of this important renewable technology in Ireland.