On page 42 of this year’s December Renewables Focus feature, I review the numbers behind the Department of Agriculture’s Solar Capital Investment Scheme (SCIS), which is part of TAMS III. The 60% grant scheme has proven popular, with farmers applying for approximately €51m in grants from an indicative €90m budget. It is likely there will be a drop-off between applications and actual claims, but the question remains, what happens when the funding runs out?

The SCIS is intended to run until 2027, but could it become a victim of its own success, with the budget potentially drying up? Approximately 2,500 farmers applied for the scheme during the first four tranches. The fifth tranche has just closed closed, while the sixth is now open. Given the current rate of applications, the budget may be stretched to last until 2027.

The question is, can additional funding be secured to replenish the SCIS when it runs out? The Department of Agriculture argues that there isn’t a specific solar PV budget but rather an entire TAMS III budget of €370 million. So, if the grant applications surpass €90 million, the funding will likely come from another scheme within TAMS III.

Replenishing the SCIS budget would make a great deal of sense. Installing solar panels on shed roofs is one of the simplest ways for farmers to contribute to the green transition while also seeing tangible benefits, such as lower energy bills. While some upfront investment is required, the 60% grant significantly reduces payback periods. Some farmers are seeing payback periods as little as two years, while many others recoup their investment within five years. This is largely thanks to the grant.

There is also a cost to inaction. Will farmers continue to install solar panels at the current rate if they are required to cover 100% of the cost, or use lower-value SEAI grants? The answer is no. It’s more likely that farmers would delay solar investments in the hope of a 60% grant being reinstated in the next round of CAP funding post-2027.