Budget 2024 has fallen short in its efforts to drive the adoption of renewables among farmers.
Despite the increasing emphasis on farmers to invest in renewables, there was little clarity regarding future funding to support this sector.
However, the budget did introduce some minor new measures, such as doubling the tax disregard for electricity sold back to the grid from small solar PV systems.
This means that individuals can now earn €400 tax-free when exporting electricity to the grid. Furthermore, the extension of capital allowances on renewable system purchases by businesses for an additional two years is helpful.
A new low-interest loan scheme aimed at encouraging renewable investments is also set to be introduced, though it remains unclear who will be eligible to avail of it.
Infrastructure, climate and nature fund
Although the Government has committed to establishing a new €14bn infrastructure, climate and nature fund, details regarding its specific objectives have yet to be disclosed.
There have been suggestions that renewable energy infrastructure could benefit from this fund, but no concrete information is available.
Anaerobic digestion
Notably, there was disappointment within the anaerobic digestion (AD) industry due to the absence of any commitment or mention of funding for the sector.
While the Government pledged to use carbon tax funds allocated to the Department of Agriculture, Food and the Marine in Budget 2023 to support the expansion of the AD industry, only €3m has been allocated thus far.
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