Feed-in Tariffs in Ireland 2023-2024

Feed-in tariffs (FIT) present a significant opportunity for homeowners in Ireland to enhance their financial future-proofing. This support scheme, representing one of the Irish government's most forward-looking and innovative renewable initiatives to date, has the potential to reshape the sustainable economy not only in Ireland but also beyond. With a remarkable 281% increase in residential dwellings equipped with solar photovoltaic (PV) systems in 2023, this opportunity demands attention.

A feed-in tariff serves as a remuneration payment to solar panel owners who agree to redirect excess electricity back to the National Grid. Prior to 2022, homeowners were not compensated for feeding surplus energy back into the Grid. Thanks to groundbreaking legislation, this scenario is undergoing transformation.

As part of Ireland’s Renewable Energy and Climate Action Plan, aiming to achieve 80% reliance on renewables by the end of the decade, comprehensive plans are in place to incentivize solar panel owners further.

Role of Feed-in Tariffs in Ireland

During the sunlit summer months, homeowners can anticipate their solar infrastructure generating surplus electricity. To encourage homeowners to export this excess energy back to the Grid, the Irish Government introduced feed-in tariffs, officially known as the Clean Export Guarantee (CEG) Tariff. Homeowners can benefit from this payment by making their excess energy available for sale. Given that most systems can export between 10% and 40% of energy production, the potential inherent in this scheme is evident.

These tariffs are integral to the Microgeneration Support Scheme, committed to maintaining a competitive market rate for energy. Excess solar energy is distributed back to the National Grid through individual electricity suppliers who set their prices. Measurement of system output in Kilowatt-hours (kWh) ensures precise remuneration for homeowners.

In essence, feed-in tariffs serve as an additional incentive for homeowners to adopt solar technologies, providing compensation that goes beyond reducing energy bills generated by solar PV panels. The bi-directional "Smart Meter" plays a crucial role in microgeneration, facilitating exact calculations of energy consumption for accurate payments.

Key Entities of the Feed-in Tariff System

In Ireland, the Electrical Services Board (ESB) manages EirGrid, the national power system, playing a pivotal role in the microgeneration scheme and the feed-in tariff strategy. After the completion of solar installations, a registered provider must submit an NC6 form to ESB network, initiating the process to connect a private solar array to the National Grid. In 2022, ESB oversaw over 35,000 home-to-grid connections.

The Sustainable Energy Authority of Ireland (SEAI) is the entity behind the scheme that introduced the feed-in tariff program. As the overseer of sustainable technologies, the SEAI announced the Microgeneration Support Scheme in 2021, with feed-in tariffs following a year later. The Commission for Regulation of Utilities (CRU) sets and oversees the terms and conditions of the Microgeneration Support Scheme, ensuring customers are appropriately compensated and serving as an arbiter in disputes.

The CRU plays a crucial arbitration role between homeowners and ESB after the connection is established. Importantly, the CRU has been assigned the responsibility of proposing a valuation formula for energy generated by small-scale generators. This formula is represented as follows:

Deemed Export Quality = MEC x Capacity Factor x Export Factor x Provision Interval

Once ESB is informed of a Grid connection through an NC6 submission, Irish homeowners can actively export and receive feed-in tariff payments.

Feed-in Tariff FAQs

1. What is the feed-in tariff rate in Ireland in 2023?

Each supplier sets its remuneration amounts, and as of late 2023, the rates are as follows (€ per kWh of exported energy):

• Pinergy – €0.25
• SSE Airtricity – €0.24
• Energia – €0.24
• Electric Ireland – €0.21
• Flogas – €0.20
• Bord Gas – €18.5

Considering the average rate per kWh of energy in Ireland is approximately €0.43, homeowners can recover nearly half of their expenditure under the scheme. Payments are made bi-annually.

2. Can you sell electricity back to the grid in Ireland?

Feed-in tariffs are the optimal method for financial compensation when selling electricity back to EirGrid. Smart Meters are crucial for exact calculations, and homeowners can save 20 to 30% on overall energy usage through this scheme. The first €200 from feed-in tariffs is tax-free. 

3. Who pays the highest feed-in tariff?

As of late 2023, Pinergy offers the highest feed-in tariff rate at €0.25 per kWh of exported solar energy.

4. How do I find my tariff feed?

While bi-directional Smart Meters are reliable, standard meters and wheeled meters can be used, with suppliers compensating based on inbound energy figures.

Microgeneration and the feed-in tariff scheme present an exciting opportunity for homes across Ireland. At Wattcharger, we pride ourselves on delivering reliable and up-to-date news in the world of sustainability. If you are interested in installing a solar PV system or want to learn more about feed-in tariffs, feel free to reach out to us using the tool below.