Renewable Energy Feed-in Tariff (REFIT) Scheme

Background

• The Renewable Energy Feed-in Tariff (REFIT) schemes were support schemes created to help Ireland achieve its target of generating 40% of its electricity from renewable sources by 2020.
• The schemes offered renewable electricity generators certainty by guaranteeing a minimum price for each unit of electricity exported to the grid over a support period of up to 15 years.
• The scheme largely supported wind generation, but small hydro, biomass, landfill gas, anaerobic digestion, and combined heat and power generation also received support from REFIT.

REFIT Support

• The scheme is funded by the PSO, which is a charge made to all electricity consumers. The PSO was established to support renewable electricity generation in Ireland.
• When wholesale electricity prices are low projects contracted to REFIT are entitled to receive a top up of the support they receive for the electricity generated, the proceeds of the PSO Levy are used for this purpose.
  - For example, if the REFIT Reference Price is €85 per unit of electricity and the market price is €83, the REFIT project would receive €2 from the PSO Levy to ensure it is paid the REFIT Price. If the market price was €85 or above, the REFIT project would receive no support.
• In 2026, the PSO charge is €1.46 per month for every residential customer.
• For more information on the PSO please see CRU.ie and Bonkers.ie.

REFIT Schemes

• There are three REFIT schemes, called REFIT 1, REFIT 2 and REFIT 3.
• REFIT 1 was announced in May 2006, with State aid approval granted in September 2007, REFIT 1 supported renewable technologies such as onshore wind, small hydro, biomass and landfill gas. REFIT 1 closed for new applications on 31 December 2009.
• REFIT 2 opened in March 2012 and supported renewable technologies such as small and large scale onshore wind, small hydro and landfill gas. The scheme closed to new applications on 31 December 2015.
• REFIT 3 opened in February 2012 and supported biomass technologies such as anaerobic digestion, biomass and combined heat and power. REFIT 3 closed to new applications on 31 December 2015.
• REFIT supported and continues to support a range of renewable technologies, but the main source supported in REFIT, has been renewable electricity generated by wind.
• In 2020, the successor scheme to REFIT, the Renewable Electricity Support Scheme (RESS) came into being.

• REFIT 1 support period ends on the 31/12/2027.
• REFIT 2 support period ends on the 31/12/2032.
• REFIT 3 support period ends on the 31/12/2030.

The Terms and Conditions, and State Aid Decisions for the three REFIT schemes can be accessed on the Department’s website below.

REFIT 1

REFIT 2

REFIT 3

REFIT projects are paid in accordance with the Terms and Conditions of each scheme. The amount each project is entitled to be paid is known as the Reference Price. If the market price of electricity is lower than this amount, the payment made to each project is topped up to this figure by the PSO. The REFIT Reference price is updated annually in accordance with the Consumer Price Index.

Section 5.2 of the Terms and Conditions of the three REFIT schemes provide for adjustments to reference prices by way of annual indexation. This uses the annual percentage change in the Consumer Price Index as quoted by the Central Statistics Office (CSO), which you can find on the CSO website. Information on reference prices for 2026 can be found below.

The PSO levy is charged or paid to electricity customers in Ireland to support renewable energy projects in Ireland. This levy is a key tool in enabling Ireland to meet its national renewable energy targets, and ensuring we have a supply of sustainable, reliable and affordable energy.

Useful information on what the PSO is can be found at Switcher.ie, CRU.ie and Bonkers.ie.

The amount charged or paid to electricity customers in Ireland is calculated by the Commission for Regulation of Utilities (CRU) each year. For 2026, the PSO charge is €1.46 per month for every residential customer.

For more information on the 2025-26 PSO calculation, please see the CRU PSO Decision Paper for 2025/26.

The annual PSO legislation, which is a law passed by the Oireachtas is prepared by the Department of Climate, Energy and the Environment. Staff prepare a Statutory Instrument (SI) (an order or regulation made by a Minister in exercise of a power conferred by Statute), which lists renewable energy (REFIT and its successor, RESS) projects that are entitled to receive support payments. Only projects listed on the SI can receive support under either REFIT or RESS and from 2025, Small-scale Renewable Electricity Support Scheme (SRESS) projects were included on the SI.

Once the SI is approved and finalised, it is laid before the Houses of the Oireachtas and published in the Irish Statute Book.

The most recent PSO Statutory Instrument can be accessed below. All previous SIs are also available on the Irish Statute Book website.

S.I. No. 689/2025 - Electricity Regulation Act 1999 (Public Service Obligations) (Amendment) Order 2025

The CRU is Ireland’s independent energy and water regulator. Each year, the CRU calculates the amount of money required to support eligible renewable projects for the upcoming year.

Its role is to calculate the PSO levy or PSO payment annually in accordance with Government policy and to help ensure that the scheme is administered appropriately and efficiently.

Energy suppliers then collect the amount determined by CRU through customer bills, and the funds are used to support renewable electricity projects that contribute to Ireland’s renewable energy goals.

For any queries, please visit the CRU’s contact page.