Small-Scale Renewable Electricity Generation
From Department of the Environment, Climate and Communications
Published on
Last updated on
From Department of the Environment, Climate and Communications
Published on
Last updated on
Small-Scale Generation is defined as renewable electricity generation technologies with an electricity output greater than 50kW, but smaller than typical commercial generators.
A scheme to support the deployment of small-scale renewable electricity generators was identified as a key action to deliver on the Climate Action Plan 2023 (CAP23) target of up to 5GW of solar by 2025, and 8GW by 2030, as well as at least 500 MW of local community-based renewable energy projects and increased levels of new micro-generation and small-scale generation.
Following a public consultation on proposed High-Level Design features of a Small-Scale Generation Support Scheme in 2022, Government approved the High-Level Design of the Small-Scale Renewable Electricity Support Scheme (SRESS) on 23 June 2023. The SRESS is a key building block to deliver on Ireland’s solar targets and forms part of the Government’s comprehensive enabling framework for Renewables Self-Consumers. The 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).
The SRESS will be operated on the basis of a policy lifetime out to 2030 and a 15-year support lifetime for successful applicants. The scheme will be open for applications on a continuous basis up to a defined closing date to be determined under the Terms and Conditions of the scheme. These Terms and Conditions will be published in the coming months.
The SRESS High-Level Design outlines a three-phased approach to the rollout of the scheme, with different support mechanisms to support distinct categories of applicants.
Given the requirement to rapidly accelerate the rollout of renewables to meet CAP 23 and solar PV targets, capital grants are now being provided for solar installations for this cohort for an interim period up to the end of 2025. The appropriate form of support for post 2025 will be determined in 2024.
The Minister for Enterprise, Trade and Employment and the Minister for the Environment, Climate and Communications have amended the SEAI Non-domestic Microgeneration Grant scheme, to provide for grants to renewable self-consumers up to 1MW. This amendment represents the first phase of the SRESS, offering immediate financial grants for Solar PV installations to this cohort.
Separately, with the introduction of the Clean Export Guarantee (CEG) in 2021, any residual renewable electricity not consumed on the premises of renewable self-consumers is also now eligible for an export payment from their electricity supplier, which further supports the investment. Further information on the CEG is provided below.
This cohort is proposed to be supported via a Feed-in Premium tariff for the duration of the scheme. This tariff will be characterised by a Feed-in Premium (FiP) tariff without an auction, that is, the support rate will be provided for the support lifetime, with successful applicants receiving a premium on the market revenues they receive for their renewable electricity. In addition, export only projects (that is, those renewable electricity generation projects which are not renewable self- consumers) below 1 MW would also be supported under this category.
It is intended that all categories of applicant, including Renewable Self-Consumers from 50kW to 1MW, will be supported via a Feed in Tariff post-2025. It is proposed that the final decision on this will be taken after up-to-date analysis in 2024.
Some other Key Design Features of the SRESS are:
Consumer Protection – The above-mentioned premium tariff for export led projects is a two-way tariff. This will help to protect electricity customers from high electricity prices by ensuring that projects are not over-compensated and contribute monies back to the PSO at times of high-electricity prices.
Eligible Technologies – The scheme will provide opportunities for multiple renewable electricity generation technologies, with support levels determined based on the cost of Solar PV. This will ensure that the scheme delivers diversity both in terms of the number and types of projects, as well as an increased mix of renewable technologies.
Community Participation – The SRESS aims to provide an easier route to market for community projects than the competitive RESS auction process, without any competitive auction, while also enabling farmers, businesses and others to maximise their participation in the energy transition.
Export-led Community projects will be eligible for further enabling supports. These will be similar to those developed under the SEAI’s RESS Community Enabling Framework. This is a package of enabling supports including technical, and financial services which it is proposed will be available to Community projects under the SRESS.
Further details of this existing RESS support for communities, including a range of practical guidance modules on a wide range of renewable energy topics are available on the SEAI website.
50kW rooftop or ground mounted installations require approximately 125 to 200 solar panels. That would require 250-300m2 of roof space. For context, a double tennis court is around 260 m2.
Alternatively, a 50kW ground-mounted system would require around a third of an acre of land (0.1ha).
Approximately 3.75-5 acres (1.5-2ha) is required to support 1MW of solar capacity.
The Clean Export Guarantee (CEG) tariff provides an opportunity for micro-and small-scale generators in Ireland to receive payment from their electricity supplier for all excess renewable electricity they export to the grid. This remuneration is intended to reflect the wholesale market value of the electricity.
The Commission for Regulation of Utilities (CRU) published a decision on an interim enabling framework for the CEG on 1 December 2021.
This decision outlines the interim arrangements for the implementation of the CEG, including eligibility criteria and remuneration methodology. The CRU has decided that suppliers will set their individual CEG tariffs on a competitive market basis. The CRU decision also includes a number of provisions to ensure that the implementation of the CEG aligns with the National Smart Metering Programme.
The CEG became available upon the transposition of Article 21 of the Renewable Energy Directive (RED II) into Irish law on 15 February 2022. It is available to both new and existing micro- and small-scale generators who fulfil the eligibility criteria set out in the CRU decision. All electricity suppliers have a CEG tariff in place
Further details are available on the CRU website.
In September, 2022 ESB Networks opened a pilot scheme for Small-Scale Generation. The initial scope of the pilot is to run for six months and enable up to 100 connections in this range. Feedback and learnings will be taken throughout the duration of the pilot and will be used to develop and enhance our future generator connection process .
For larger installations, the Enduring Connection Policy (ECP) process for grid connection applications is the current main pathway for generators, storage and other system services technology projects to connect to the electricity system. More information is available on the ESB Networks website.