After a highly anticipated launch of the flagship Solar Capital Investment Scheme (SCIS), part of TAMS III, in February 2023 – the first approval letters are now reaching farmers’ doorsteps. The scheme aimed to rapidly increase the installation of solar PV panels on farms.
The deadline for the second tranche of the SCIS was extended to 19 January and is fast approaching. Interest in the second tranche of applications is high, with many already submitted. However, some applications are still in progress, and time is of the essence.
What can I get?
The SCIS offers up to 60% grant aid toward the cost of solar PV panels and batteries, with an investment ceiling of €90,000. The maximum size of PV panels eligible for grant aid is 62kWp (peak output in kilowatts).
Like all TAMS applications, the value of the grant is based on the Department of Agriculture’s reference costs. For the SCIS, this includes the costs of solar PV panels, inverter and controller. They are calculated as follows:
The reference cost for solar is €1,441 per installed kilowatt plus €1,849. So, for a 15kWp solar PV system, the reference cost for the system would be €1,441 multiplied by 15 plus €1,849, resulting in a total cost of €23,464. Farmers are eligible to claim a grant of 60% of this cost, or a maximum of €14,078.
Farmers can also apply for 60% grant aid for batteries that are half the capacity of the solar PV system. The reference cost is €703 per installed kWh, plus €753. Therefore, for a 7.5kWh battery, the reference cost works out to be €6,025.5. Farmers are eligible to claim a maximum grant of 60%, which amounts to €3,615.
Tranche 1
A total of 753 applications were submitted in tranche I, valued at €17.2m. The average size of the solar PV systems applied for is 21.54kWp, ranging from 2kWp to 62kWp. For batteries, the average size is 9.25kWh, with a range from kWh to 31kWh.
What do I need for an application
Speaking to Kevin Carey from Atlantic Energy Consulting, he explained that there is a lot involved in the application process, but farmers shouldn’t be discouraged by this. Applications for the SCIS can be made through the Department’s agfood.ie website.
For solar panels, you will need both a farm layout plan detailing all existing and proposed buildings, and a farm structure layout plan showcasing the investment structure and buildings. As standard, you’ll need maps and ownership details, and, where applicable, planning permission and environmental impact assessments (although this is unlikely to be needed for rooftop solar).
The application process is quite comprehensive and you will also need to provide a solar PV survey. This survey assesses the farm’s energy demand based on the past 12 months of electricity bills and recommends a suitably sized solar system that matches your farm’s demand. The Department insists that all energy produced by the system is consumed on the farm, and they enforce this by limiting the grant aidable size of the PV system. Typically, solar PV suppliers or consultants will complete this survey.
Any internal agitation and extraction points need to be removed from the building where the panels are being installed, according to the Department.
What has been learned so far
The first handful of projects from tranche I are just after commencing. However, a number of problems have already been identified in the process so far. From discussions within the industry, it’s clear that while the delays in approval letters from the Department were a problem, the most significant issue facing farmers with larger PV systems is grid capacity.
Under the ESB’s simplified ‘mini-generation’ connection process, the maximum size of a system that can be installed on a single-phase line is around 17kW. This refers to the size of an inverter that would likely support a solar PV system output of up to 22-25kWp. With three-phase connections, the maximum size allowed would be 50kW at the inverter level, or roughly 75kWp of solar PV output.
However, this doesn’t necessarily dictate your farm’s capacity to accommodate a solar PV system. This is largely determined by your farm’s maximum import capacity, and while this can be increased, many farmers are finding that the grid in their area isn’t strong enough, or is too congested to do so. What this means is that even though they may be able to avail of grant aid for a 62kWp system, their farm may only be able to accommodate a much smaller system, in some cases as low as 6kWp. This is a problem that extends far beyond the SCIS and is one of the biggest hindrances to the rollout of solar PV on Irish farms.
Low energy farms
Tillage and drystock farms typically have a much lower energy demand than dairy, pig, poultry, or horticulture farms. However, that isn’t necessarily a bad thing when it comes to the SCIS. With the farmhouse eligible to be included in the total energy consumption calculation of the farm (as long as the farm and house share the same meter), these farms have a very good chance of securing grant aid and having a grid connection which can accommodate the optimal system size. In contrast, many larger farmers are finding themselves constrained by grid capacity.
Inverters and controllers are included in the reference costs under the SCIS.
Specifications
The Department of Agriculture has recently updated the minimum specifications for the installation of solar PV systems, confirming that rail-less mounting systems for installing solar PV panels under the SCIS grant process will be permitted. These systems are widely used on roof installations worldwide and can be less expensive than alternative hanger bolt and rail options, depending on the roof’s structure.
The alternative, the hanger bolt and rail system involves bolts being screwed into timber/steel purlins, with rails attached above the roof surface, and then solar PV panels are attached to these rails. This installation system typically adds approximately 5% to 7% to the installation costs since components are more expensive, and the installation time can be longer, according to the Micro Renewable Energy Federation.
For space-sheeting roofs, these new rules are more workable as panels will now need to be positioned 100mm above the sheet instead of the initially proposed 150mm. However, as with other layout restrictions, it may add complexity and some additional costs, as the installation process will take longer to complete.
Safety cages are also fitted under roof lights before installations, and any internal agitation and extraction points need to be removed from the building where the panels are being installed, or where inverters or any part of the solar PV system is being installed, in order to qualify under the TAMS regulations.
This requirement extends to buildings with agitation or extraction points that share a “common airspace” with the building accommodating the solar panels, inverters, batteries, or any part of the solar PV installation.
The SCIS has experienced significant administrative challenges in its first year, mirroring the issues faced by all schemes. However, it is expected that these issues will be resolved in 2024. The question remains: is the SCIS worth it?
In my mind the answer is simple. No other business can access a 60% grant for self-consumption solar PV systems. So, yes, it is very much worth it. I am currently working on getting my own SCIS application in for my farm in Donegal. Even though I don’t use much energy, the system will pay for itself in around three years. It’s a no-brainer.
After a highly anticipated launch of the flagship Solar Capital Investment Scheme (SCIS), part of TAMS III, in February 2023 – the first approval letters are now reaching farmers’ doorsteps. The scheme aimed to rapidly increase the installation of solar PV panels on farms.
The deadline for the second tranche of the SCIS was extended to 19 January and is fast approaching. Interest in the second tranche of applications is high, with many already submitted. However, some applications are still in progress, and time is of the essence.
What can I get?
The SCIS offers up to 60% grant aid toward the cost of solar PV panels and batteries, with an investment ceiling of €90,000. The maximum size of PV panels eligible for grant aid is 62kWp (peak output in kilowatts).
Like all TAMS applications, the value of the grant is based on the Department of Agriculture’s reference costs. For the SCIS, this includes the costs of solar PV panels, inverter and controller. They are calculated as follows:
The reference cost for solar is €1,441 per installed kilowatt plus €1,849. So, for a 15kWp solar PV system, the reference cost for the system would be €1,441 multiplied by 15 plus €1,849, resulting in a total cost of €23,464. Farmers are eligible to claim a grant of 60% of this cost, or a maximum of €14,078.
Farmers can also apply for 60% grant aid for batteries that are half the capacity of the solar PV system. The reference cost is €703 per installed kWh, plus €753. Therefore, for a 7.5kWh battery, the reference cost works out to be €6,025.5. Farmers are eligible to claim a maximum grant of 60%, which amounts to €3,615.
Tranche 1
A total of 753 applications were submitted in tranche I, valued at €17.2m. The average size of the solar PV systems applied for is 21.54kWp, ranging from 2kWp to 62kWp. For batteries, the average size is 9.25kWh, with a range from kWh to 31kWh.
What do I need for an application
Speaking to Kevin Carey from Atlantic Energy Consulting, he explained that there is a lot involved in the application process, but farmers shouldn’t be discouraged by this. Applications for the SCIS can be made through the Department’s agfood.ie website.
For solar panels, you will need both a farm layout plan detailing all existing and proposed buildings, and a farm structure layout plan showcasing the investment structure and buildings. As standard, you’ll need maps and ownership details, and, where applicable, planning permission and environmental impact assessments (although this is unlikely to be needed for rooftop solar).
The application process is quite comprehensive and you will also need to provide a solar PV survey. This survey assesses the farm’s energy demand based on the past 12 months of electricity bills and recommends a suitably sized solar system that matches your farm’s demand. The Department insists that all energy produced by the system is consumed on the farm, and they enforce this by limiting the grant aidable size of the PV system. Typically, solar PV suppliers or consultants will complete this survey.
Any internal agitation and extraction points need to be removed from the building where the panels are being installed, according to the Department.
What has been learned so far
The first handful of projects from tranche I are just after commencing. However, a number of problems have already been identified in the process so far. From discussions within the industry, it’s clear that while the delays in approval letters from the Department were a problem, the most significant issue facing farmers with larger PV systems is grid capacity.
Under the ESB’s simplified ‘mini-generation’ connection process, the maximum size of a system that can be installed on a single-phase line is around 17kW. This refers to the size of an inverter that would likely support a solar PV system output of up to 22-25kWp. With three-phase connections, the maximum size allowed would be 50kW at the inverter level, or roughly 75kWp of solar PV output.
However, this doesn’t necessarily dictate your farm’s capacity to accommodate a solar PV system. This is largely determined by your farm’s maximum import capacity, and while this can be increased, many farmers are finding that the grid in their area isn’t strong enough, or is too congested to do so. What this means is that even though they may be able to avail of grant aid for a 62kWp system, their farm may only be able to accommodate a much smaller system, in some cases as low as 6kWp. This is a problem that extends far beyond the SCIS and is one of the biggest hindrances to the rollout of solar PV on Irish farms.
Low energy farms
Tillage and drystock farms typically have a much lower energy demand than dairy, pig, poultry, or horticulture farms. However, that isn’t necessarily a bad thing when it comes to the SCIS. With the farmhouse eligible to be included in the total energy consumption calculation of the farm (as long as the farm and house share the same meter), these farms have a very good chance of securing grant aid and having a grid connection which can accommodate the optimal system size. In contrast, many larger farmers are finding themselves constrained by grid capacity.
Inverters and controllers are included in the reference costs under the SCIS.
Specifications
The Department of Agriculture has recently updated the minimum specifications for the installation of solar PV systems, confirming that rail-less mounting systems for installing solar PV panels under the SCIS grant process will be permitted. These systems are widely used on roof installations worldwide and can be less expensive than alternative hanger bolt and rail options, depending on the roof’s structure.
The alternative, the hanger bolt and rail system involves bolts being screwed into timber/steel purlins, with rails attached above the roof surface, and then solar PV panels are attached to these rails. This installation system typically adds approximately 5% to 7% to the installation costs since components are more expensive, and the installation time can be longer, according to the Micro Renewable Energy Federation.
For space-sheeting roofs, these new rules are more workable as panels will now need to be positioned 100mm above the sheet instead of the initially proposed 150mm. However, as with other layout restrictions, it may add complexity and some additional costs, as the installation process will take longer to complete.
Safety cages are also fitted under roof lights before installations, and any internal agitation and extraction points need to be removed from the building where the panels are being installed, or where inverters or any part of the solar PV system is being installed, in order to qualify under the TAMS regulations.
This requirement extends to buildings with agitation or extraction points that share a “common airspace” with the building accommodating the solar panels, inverters, batteries, or any part of the solar PV installation.
The SCIS has experienced significant administrative challenges in its first year, mirroring the issues faced by all schemes. However, it is expected that these issues will be resolved in 2024. The question remains: is the SCIS worth it?
In my mind the answer is simple. No other business can access a 60% grant for self-consumption solar PV systems. So, yes, it is very much worth it. I am currently working on getting my own SCIS application in for my farm in Donegal. Even though I don’t use much energy, the system will pay for itself in around three years. It’s a no-brainer.
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