Barry Ward (Dún Laoghaire, Fine Gael)
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108. To ask the Minister for Communications, Climate Action and Environment the incentives he will put in place to improve and increase domestic electricity micro-generation; and if he will make a statement on the matter. [2005/25]

Eamon Ryan (Dublin Bay South, Green Party)
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Domestic electricity micro-generation is supported by the Micro-generation Support Scheme (MSS). Grants are available through the Sustainable Energy Authority of Ireland (SEAI) for domestic installations of solar PV, up to a maximum of €1,800 in 2025.

Since the introduction of the MSS domestic grant in February 2022, the SEAI have seen application levels rise sharply. In 2023, 22,214 households received grant support totalling €52.2m, while last year saw over 28,000 households supported and 160MW generation capacity installed. This high level of demand is expected to continue into 2025 and indicates that the scheme is working well and that households across Ireland are recognising the benefits of investing in solar PV.

It should also be noted that maximising consumption of self-generated electricity will provide the most benefit to offset rising electricity costs and shorten the payback period for the investment in the installation of solar panels. Additionally, the Clean Export Guarantee (CEG) tariff is now available from all electricity suppliers, offering the opportunity for remuneration for excess renewable electricity exported to the grid.

A tax exemption is available for certain earnings from the generation of residual electricity at an individual’s qualifying residence from 1 January 2022 until 31 December 2025. Section 216D of the Taxes Consolidation Act 1997 provides for a tax exemption of up to €200 per year for tax years 2022 and 2023. Finance Act (No.2) 2023 increased the exemption available for tax years 2024 and 2025 to €400 per year. Household uptake of micro-generation has been further supported by the Government decision to apply a zero percent VAT rate for the Supply and Installation of Solar Panels, since May 2023.