Details of a new support scheme which will allow farmers to build small-scale wind and solar export projects and get paid for 15 years have been revealed.

The Small-Scale Renewable Electricity Support Scheme (SRESS) will provide tariff support for small-scale wind and solar PV projects between 50kW and 6MW in size.

The scheme differs significantly from other commercial State schemes, in which developers had to compete in an auction-based system for support.

While the scheme will be open to farmers and SMEs, the Department has stated that this is primarily aimed towards community groups, which must develop 500MW of renewable electricity produced by 2030 under Government plans.

Tariff

Farmers, SMEs and community groups will instead avail of a fixed tariff for each unit of electricity exported to the grid.

The scheme will only be open to solar PV or wind projects and different rates will be paid depending on the scale and type of project.

Community projects will avail of a higher tariff rate than farms and SMEs.

The tariff rates are as follows:

  • Farm and SME solar projects between 50kW and 1MW: 13c/kWh.
  • Farm and SME solar projects between 1MW and 6MW: 12c/kWh.
  • Farm and SME wind projects up to 6MW: 8c/kWh.
  • Community solar projects between 50kW and 1MW: 15c/kWh.
  • Community solar projects 1MW and 6MW: 14c/kWh.
  • Community wind projects up to 6MW: 9c/kWh.

    • Tariff rates will be reviewed in three years at the latest and will be index linked up to 30%.

    It should be noted that any entity can apply for the scheme from 50kW to 1MW, but only farmers, SMEs and community groups will be able to avail of tariffs from 1MW upwards.

    Power purchase agreement

    The scheme is supported under the PSO levy and will pay electricity suppliers the difference between market rates and tariff rates paid to applicants.

    If market rates exceed tariff rates, then the electricity supplier pays the difference back to the PSO.

    Applicants to the scheme will have to have a power purchase agreement (PPA) in place with electricity suppliers in order to avail of the scheme.

    TAMS

    Farmers who availed of TAMS grant aid to install solar panels are still eligible for the scheme, provided the SRESS system is entirely separate. Full planning permission and a grid connection will be required in order to be eligible for the scheme.

    The final terms and conditions of the scheme are expected to be published in July, with the scheme launching later in the year.