Ireland's Microgeneration and Clean Export Guarantee

In an exciting endorsement of one of the most prominent emerging technologies worldwide, Ireland's microgeneration scheme and clean export guarantee are state initiatives designed to empower environmentally conscious consumers in the nation. Despite the seemingly unremarkable title, this project may be the most ambitious renewable energy endeavor in Irish history. Furthermore, this technology empowers Irish homeowners by providing them with grants to establish renewable technologies and enables them to profitably sell the surplus energy back to the national grid.

At Wattcharger, we are dedicated to documenting, sharing, and assisting you in navigating the ever-changing world of sustainability and renewable options. Today, we will explore how homeowners can utilize their small-scale generators to reduce emissions and achieve significant savings. Additionally, we will examine how organizations such as the Sustainable Energy Authority of Ireland and The Commission for Regulation of Utilities can be effectively employed to yield observable outcomes.

Understanding Microgeneration

Although microgeneration may sound complex and technical, it is a straightforward and incredibly innovative science. Derived from the Greek suffix meaning "small," micro refers to the smallest center of generation - the Irish home.

Microgeneration involves generating renewable energy sources at home, such as solar panels or wind turbines. This enables homeowners to produce their energy while also providing an opportunity to significantly reduce or eliminate their carbon footprint.

Since 2001, Ireland's national energy grid, EirGrid, has been responsible for operating the national power system. Currently owned by ESB since 2006, renewable sources account for less than a third of EirGrid's energy output. Furthermore, according to the Household Energy Price Index, Irish homeowners pay the highest average rate of 49.9 cents per kWh through the grid in the European Union. Fortunately, microgeneration offers a strong and viable alternative.

Microgeneration typically utilizes solar photovoltaic panels, micro-wind, or micro-hydro sources. It allows homeowners to reduce or eliminate their dependence on the National Grid. This not only has the potential for significant energy savings but also the capacity to drive a true renewable energy revolution at a system-wide level.

Solar photovoltaic panels, which harness the sun's radiant energy through silicone semiconductors, convert the captured energy into a strong direct current (DC) using an inverter. This DC can then be used to power the home. An average 3.28 kWp solar panel array can generate up to 2,900 kWh, which is more than sufficient for a family of four, with the potential to create excess energy.

Once the solar panels are operational, homeowners need to install a bi-directional "smart meter." This smart meter facilitates a two-way energy feed with the grid. It allows home-grown energy to be fed back to the grid and also enables homeowners to draw energy from the grid in case of emergencies.

Renewable Energy Directive and Climate Action Plan

As a part of the Renewable Energy and Climate Action Plan, Ireland has committed to reduce greenhouse gas emissions by 51% and increase reliance on renewables to 80% or more by the end of the decade. To encourage the adoption of microgeneration, the government has implemented various support mechanisms. These mechanisms aim to incentivize homes, businesses, and farms to generate their energy through small-scale renewable energy generators. Additionally, the government is working on establishing the necessary infrastructure to enable the seamless integration of this energy back into the grid, thereby fostering a greener society as a whole.

To meet their ambitious targets, the government is actively supporting at least 500MW of community-based microgeneration projects throughout Ireland. This amount of energy is enough to power approximately half a million homes. Consequently, there has never been a better time to embark on your microgeneration journey.

As we will soon discover, the Clean Export Guarantee (CEG) serves as the ideal starting point for Irish homeowners.

Understanding the Clean Export Guarantee (CEG)

At the core of the Irish government's commitment to supporting microgeneration is the Clean Export Guarantee (CEG). This tariff enables homeowners to receive compensation from their energy suppliers for the renewable energy they generate and export back to the grid.

Administered through the Microgeneration Support Scheme (MSS), the goal is to bring online 2.5GW of solar renewables across Ireland. The CEG is currently accessible to owners of both new and existing small-scale microgeneration technologies, with the condition that the system size does not exceed 400kW. This size limit is larger than the typical solar panel installations found in most Irish homes.

CEG Tariff and Remuneration

While the Microgeneration Support Scheme (MSS) guarantees a "competitive market rate" under the scheme, it is at the discretion of individual suppliers to determine their prices. Here are some of the popular rates offered by suppliers in the Irish market:

• Flogas: 22 cents
• Bord Gais Energy: 18.5 cents
• Electric Ireland: 21 cents
• Pinergy: 25 cents

Considering that suppliers like Bord Gais charge up to 47 cents per kWh, homeowners can easily recognize the significant value to be gained by making the switch. For a typical 2-bedroom home using an average solar panel installation, there is not only an opportunity to save on electricity bills but also to generate profit by selling excess energy back to interested buyers.

While the specific schedules may vary among suppliers, homeowners who embrace microgeneration can expect to receive a bi-annual payment from their chosen provider. Although each provider establishes their terms, similar arrangements can be found across various providers in Ireland.

CEG Eligibility and Application Process

While the process of availing of the MSS scheme and receiving the CEG may seem complex, it is quite straightforward for most Irish homeowners in terms of eligibility criteria. The majority of the necessary steps are carried out directly with the homeowner's electrical provider.

Before proceeding with the installation of a micro-generator, it is essential to ensure that the home has an established grid connection. Once the installation is ready to be carried out, it is imperative to engage the services of an installer who is qualified and recognized by Safe Electric Ireland.

After the installation is completed, the installing party will submit an NC6 form on behalf of the homeowner. This form notifies the Electrical Services Board (ESB) about the establishment of a microgenerator. This step is crucial as it informs the grid, enabling the tracking of the home's energy exports.

Microgeneration Support Scheme (MSS)

Approved in late 2022, the Microgeneration Support Scheme (MSS) provides a crucial and invaluable head start to those interested in installing their own microgeneration solar PV panels.

Under this scheme, homeowners, farmers, and business owners can receive up to €2,400 to contribute towards the installation of a solar panel. This is an exceptional advantage for individuals who are keen on pursuing microgeneration but currently lack the necessary infrastructure.

The MSS is open to all homes constructed before 2021. The amount of remuneration allocated is based on the peak output of a solar photovoltaic panel array. Applicants must engage an installer who is qualified with Safe Electric Ireland and must utilize new materials that have not previously been covered under SEAI schemes.

The available grant money ranges from €900 for a 1 kWh panel array, up to a maximum of €2,400 for an array with a system output of €2,400 or more. For more information on the MSS and other solar support schemes in Ireland, refer to Wattcharger's comprehensive guide on the subject.

By taking advantage of the MSS, both homeowners and business owners become eligible to receive a CEG tariff for exporting their generated energy back to the grid. Non-domestic applicants with system sizes ranging from 6 kW to 50 kW will receive a Clean Export Premium of €0.135/kWh in 2022, as determined by the Department of the Environment, Climate, and Communications.

Benefits and Impacts of Microgeneration

As we have observed, generating your energy instead of relying on the grid can lead to savings of 20 to 30% on homeowners' day-to-day energy consumption. Moreover, the availability of various grant schemes and compensations makes the setup costs of an exportable microgenerator, such as a solar PV panel, much more achievable for many individuals.

By producing energy for self-consumption, homeowners reduce or eliminate their dependence on harmful emissions, allowing renewable strategies to take precedence. EirGrid experienced a 20% increase in energy output between 2015 and 2023. This rapid growth rate has strained a system heavily reliant on non-renewable sources. Pursuing microgeneration provides a degree of independence by avoiding the costly and inefficient National Energy Grid.

Furthermore, the setup costs for installing a microgenerator are minimal. With the assistance of various schemes and grants, the process becomes more affordable, and homeowners can soon start earning profits by selling excess energy back to their energy service provider.

Grid connectivity relies on the use of a smart meter. Since 2019, over 1.9 million meters have already been installed in homes and businesses by the Electrical Services Board (ESB), making the process easier than ever before. Smart meters enable the automatic transmission of meter readings to the electrical service provider. This allows both parties to accurately track expenditures down to the last cent and establish automated payment dates. Moreover, these meters can be connected to the grid, enabling service providers to monitor the exact amount of surplus renewable power being fed back into the system.

Regulatory Framework and Organizations

In Ireland, the Commission for the Regulation of Utilities (CRU) is responsible for licensing and monitoring electrical generators. In 2021, the CRU published regulatory arrangements governing the installation of generators on private properties.

While the CEG and CEP tariffs are established by ESB and private energy providers, the CRU plays a vital role in advancing microgenerator regulation and practices. Additionally, the CRU sets the valuation formula for energy produced by small-scale generators. According to the Commission for the Regulation of Utilities, the Deemed Export Quality is calculated using the following formula:

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

In terms of maintaining the National Grid, ESB holds priority. As the operator of Ireland's 1,350 EV charge points, ESB has been at the forefront of integrating microgeneration technology into the broader energy system in Ireland.

Although microgeneration is still an emerging technology, environmentally conscious homeowners in Ireland should take pride in the government's efforts to empower the generation of renewable energy on a small scale. While navigating the various schemes may seem overwhelming at times, the relevant organizations strive to make the process relatively straightforward.

Microgeneration offers unique functionality that enables homeowners and businesses in Ireland to significantly reduce emissions while also reaping financial benefits.

Those interested in furthering their knowledge about the technology can visit the websites of ESB and the CRU, and also consult with their electrical service providers. Additionally, our in-house experts at Wattcharger are always available to assist with any queries you may have.