The Irish Solar Energy Association (ISEA) and the Micro Renewable Energy Federation (MREF) have welcomed the introduction of a new grant scheme supporting businesses to install solar PV panels.

Minister for Environment Eamon Ryan announced new grant aid for businesses to incentivise the installation of solar PV systems ranging from 6kWp up to 1,000kWp (1 MW) in capacity this week.

An installation size of 1,000kWp equates to approximately 2,500 solar PV panels, which could be accommodated on a large factory or warehouse rooftop or on farm roof spaces.

Grant aid rates range from €2,700 to €162,600, depending on the system. This will typically support 20-30% of the investment cost, reducing payback to as little as five years according to the Government. The scheme, which will operate as a pilot until the end of 2023, is estimated to cost up to €15m.

Welcome

ISEA CEO Conall Bolger said that while rooftop solar panels have gained popularity among Irish homes, businesses have lacked comparable support until now. Bolger further highlighted the potential impact of businesses adopting solar energy. With larger premises and roofs, businesses can generate substantial amounts of power, making a significant contribution to Ireland's renewable electricity targets, he said.

Obstacles

MREF chair Pat Smith commended the new solar PV grant scheme but emphasised the need to address any remaining delays or obstacles in the electricity distribution system. This includes fast grid access agreements from ESB Networks and fair payments for surplus energy generated by businesses, farms, and homes.

Smart meters

Smith also calls for the prioritisation of smart meter installations in any business, farm, or home with a solar PV system. Accurate measurement and payment for exported energy are vital. The micro-generation sector urged Minister Ryan to mandate smart meter installation within three months of solar PV system installation.

Furthermore, Smith urges the extension of the zero VAT rate on solar PV installations to community, public, and sporting bodies without delay.

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Grant aid rates range from €2,700 to €162,600 depending on the system, which will typically cover 20-30% of the investment cost, according to the government.