The New Solar PV Panel Grant for Businesses in Ireland

Exciting plans have been unveiled for an ambitious solar panel installation grant. With these plans, businesses throughout Ireland now have more compelling reasons than ever to transition to renewable energy sources.

On Tuesday, Green Party leader and Minister for the Environment, Eamon Ryan, presented proposals for a new scheme to the Cabinet, alongside Simon Coveney. This scheme highlights the latest advancements made by the Irish government in facilitating access to and utilization of solar PV panels.

The minister's proposal aims to establish a tiered system for allocating funds toward the installation of solar technology. Businesses across Ireland will have the opportunity to apply for up to €162,000 to contribute towards the installation of solar panels.

What are Solar PV Panels?

Solar photovoltaic (PV) panels are devices that generate electricity by converting the sun's heat into powerful direct current (DC) electricity through an inverter. This distinguishes them from solar thermal panels, which primarily heat water. The generated current is then transmitted through wiring and can be used to power homes. While solar PV panels perform optimally under bright sunlight, the silicon semiconductors within the panels can still capture heat and produce electricity even on cloudy days.

The output of a solar array is measured in kilowatt-peak (kWp), with one kWp typically equating to a cumulative system output of 1000 kWh per year. This measurement is crucial as it serves as the primary determinant for available grant capital.

In addition to providing homeowners and businesses with a self-sufficient energy source, solar panels are renowned for their clean energy production. In Ireland, where over two-thirds of energy is still generated from fossil fuels, adopting solar technology allows individuals to bypass the use of dirty energy sources. While the environmental benefits of solar technology are well-documented, their ability to help Irish business owners achieve significant cost savings on energy expenses is not as widely known. As we will explore, implementing solar technology offers a wide range of financial advantages.

Purchasing and Installing Solar Panels

In Ireland, the Sustainable Energy Authority (SEAI) is responsible for managing the support and development of sustainable technologies across the country. Established in 2002, the SEAI has been at the forefront of making renewable technologies, such as solar panels, more accessible to homeowners and businesses.

For small homes and businesses in Ireland, the average cost of a 350-kilowatt solar panel unit is €345. While many businesses may require larger arrays, the scheme primarily targets small businesses with energy demands similar to those of a single-family home. For larger businesses or those with higher energy requirements, larger arrays costing up to €5,000 may be warranted.

When businesses are ready to install a solar array, it is crucial to engage an installer registered with Safe Electric Ireland. The installer can provide the necessary documentation to ESB upon completion of the installation to ensure compliance and quality workmanship.

Under the SEAI's existing Non-Domestic Microgen Scheme, Irish business owners can claim a minimum of €900 for a 1 kW system output, up to a maximum of €2,400 for a 4 kW output. Considering that providers like Electric Ireland charge over €0.40 per kWh of power, significant savings become apparent.

To avail of the scheme, business owners must obtain a quote from a registered company for the installation. Once a formal contract is agreed upon, the details must be submitted through the SEAI's website, which can be accessed here.

However, the new proposal will significantly increase grant rates for businesses. According to Minister Ryan, the provisional grant amounts for businesses will range from €2,700 to €162,500. The plans also raise the maximum size for eligible installations to 1,000 kWh, and the Minister anticipates a project expenditure of €15 million by the end of the year.

Solar technology is rapidly gaining popularity in Ireland due to government initiatives. For instance, the Irish Government aims to have 250,000 rooftop solar panels installed by the end of the decade, averaging around 1,800 installations per month.

Benefits of Solar Panels for Businesses

The Wicklow Wolf Brewery serves as an excellent example of how businesses can thrive by transitioning to solar energy. This brewery, located in a 1,580-square-meter complex in Wicklow, decided to install a solar array on the entire rooftop in mid-2022.

According to one of the brewery's co-founders, their 120 kW system output generates up to 107,000 kWh per year. By paying a rate of 12 cents per kWh, the brewery has reportedly reduced its energy bill by 60%.

When businesses switch to renewable energy, particularly solar PV panels, the potential savings can be substantial. However, many business owners are unaware of a new scheme that could pay them for any excess energy they produce.

Under the government's Microgen Support Scheme (MSS), both home and business owners can apply for a special smart meter that allows the sale of surplus renewable energy back to the provider. This process requires the installation of a smart meter. To benefit from the Clean Export Guarantee tariff and receive compensation, your registered installer must submit an NC6 form to ESB. Taking this step could be one of the smartest and most sensible moves a business can make. For more information on microgeneration and available options, please refer to Wattcharger's comprehensive guide on the subject here.

Although the newly announced scheme by the Irish Government is in its early stages, it undoubtedly opens up a world of possibilities for Irish businesses. As always, Wattcharger will be among the first to provide updates on any developments related to this legislation, as well as other news and alerts concerning renewable choices and a greener Ireland.