Small scale and community projects who generate power from solar and wind power are set to receive increased financial rewards under plans announced by the Minister for Energy today.
The Small-Scale Renewable Energy Support Scheme (SRESS) will see farmers, small firms and communities who produce their own electricity receive more attractive fixed tariffs.
The plan includes three community rates and three SME rates for both solar and wind.
The largest supported category, which are grid scale community solar projects, will receive a guaranteed tariff 20% higher than the average community price in the most recent energy auction for community projects two years ago.
"SRESS is a key building block of the Government's solar strategy and forms part of the our comprehensive enabling framework for renewables self-consumers," minister Eamon Ryan said.
"SRESS will offer supports for renewable electricity installations which are not as suited to other support measures, such as the utility scale Renewable Electricity Support Scheme (RESS) and the Micro-generation Support Scheme (MSS) – essentially filling the gap between those two scheme."
It is hoped that the SRESS will provide an easier route to market for community projects and will align more closely to the experience and capacity of the community energy sector, the minister added.
The Chairman of the Micro-Renewable Energy Federation (MREF), Pat Smith, welcomed the development.
"However, the target export tariff rates provided for in the SRESS scheme will challenge the economics of many projects, and whether they can proceed or not," he said.
"This will be particularly the case where projects are funded using bank or other forms of debt financing at high interest rates."
"A key element in the cost of projects are grid connection costs for micro-generation which need to be slashed."
"These have to be re-examined by the Commission for the Regulation of Utilities and the Networks Operator, ESB Networks, if we are serious about promoting the wider adoption of renewable energy."
The Irish Solar Energy Association also welcomed the news.
"Solar energy has made remarkable progress in Ireland over the past two years. We have seen a number of solar farms connecting to the grid, while households nationwide are increasingly adopting rooftop solar panels," said CEO Conall Bolger.
"The SRESS scheme captures the opportunities that exist between these two ends of the spectrum, fostering community energy schemes, large business rooftops and farm-based solar initiatives to develop and support our overall capacity.
However, he added that continued efforts are essential to fully capitalise on this opportunity, including ensuring prompt and affordable access to the national energy grid for the projects.
