Consultation on the Support Scheme for Renewable Heat - Expansion of Operational Aid Supports

The aim of this consultation is to gather feedback on plans to expand the Support Scheme for Renewable Heat (SSRH) operational aid/tariff supports to larger heat users, including those in the EU Emissions Trading Sector (EU-ETS), and to seek views on the appropriateness of tariff supports as currently structured.

The SSRH was launched in 2019 to financially support the adoption of renewable heating systems by commercial, industrial, agricultural, district heating and other non-domestic heat users. It aims to bridge the gap (using operating aid) between the operating costs of renewable heating systems and the conventional fossil fuel alternatives. The scheme also provides investment aid (in the form of grants) for technologies such as heat pumps

In 2023, following a review of the scheme, Ministerial approval was granted to extend the scheme’s operational aid supports to large users within the EU-ETS, originally excluded from operational supports under the scheme.

On 1st January 2024, new State Aid guidelines governing the Operational Aid element of the scheme came into effect on the SSRH. The new Climate, Environmental Protection and Energy Guidelines (CEEAG), replacing the outgoing Environmental Protection and Energy Guidelines (EEAG), created a risk to the operational aid continuing as originally structured, and to plans of expanding those supports to larger heat users. This risk came from a preference, in the CEEAG, for renewable energy operating aid to be set via a competitive process and offered through contracts for difference (CfDs). While this process is not required for projects under 1MW (6 MW for SMEs), demand for support exists for projects with higher capacities. Additionally, this cap creates a barrier to extending the scheme’s operational aid supports to EU-ETS sites, which would have capacities far in excess of the 1MW (6MW for SMEs) cap.

The Department of the Environment, Climate and Communications and Sustainable Energy Authority of Ireland (SEAI) have been in dialogue with the European Commission in an effort to seek exemption from the restrictions imposed by the CEEAG so that larger projects may be supported, including those in the EU-ETS. The Commission have acknowledged the uniqueness of the Irish situation, where biomass projects supported through the SSRH are used for heat purposes rather than electricity production, and have informed the Department that an exemption would be considered. A requirement to seeking the necessary exemption is to publish a consultation in order to gather views on scheme eligibility, the proposed use and scope of a competitive bidding process and proposed exemptions.

The consultation questions are contained in Section 2 of the consultation document below, and consist of 4 questions around both Eligibility and the Competitive Bidding Process proposed under the CEEAG guidelines, and its appropriateness for the Irish market. The questions and the overall consultation document contain sufficient information regarding the technologies supported under the SSRH operational aid and details of a key change for projects over 1MW (6 MW for SMEs), however additional information may be found on the CEEAG document itself.

The final 3 questions concern the SSRH operational aid in its current form, and seek to gather views on its suitability to the current market in terms of structure and inventiveness.

The scope of the consultation is for applicants and potential applicants for SSRH operational aid supports, however stakeholders are welcome to express their opinion on the tariff supports and the changes associated with the CEEAG introduction.

The closing date for submissions is 5.30pm on Wednesday, 11 June 2025.
Submissions should be sent by email to SSRHConsultation@decc.gov.ie or by post to:
Renewable Heat Delivery Division
Department of the Environment, Climate and Communications
Tom Johnson House
Haddington Road
D04 K7X4

We are committed to engaging with stakeholders in a clear, open and transparent manner. Any person or organisation can make a submission in relation to this consultation. We will consider all submissions and feedback before we publish the final version of the Feasibility Study.

Your response to this consultation is subject to:

• the Freedom of Information Act 2014 (FOI)
• the Access to Information on the Environment Regulations 2007-2018 (AIE)
• the Data Protection Act 2018

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