Farmers will be allowed to export much more electricity to the national grid than was expected, under the long-awaited Micro-generation Support Scheme (MSS) approved by Minister for the Environment Eamon Ryan this week.

Under the scheme, farmers will be able to generate renewable electricity and sell surplus electricity back to the grid to generate income.

According to the Department of the Environment, Climate and Communications, farmers will now be able to export 100% of what they can produce.

This is a significant increase from the original proposal of 30% in the consultation earlier in the year.

One million solar panels

The MSS is aimed at developing 380 megawatts of renewable electricity, equivalent to more than one million solar panels on approximately 70,000 buildings.

Under the scheme, renewable systems between 6kW and 50kW in size will be able to receive a new Clean Export Premium (CEP) tariff per kWh of electricity exported for 15 years.

Any difference between the CEP tariff and wholesale electricity price will be supported by the Public Service Obligation levy

The CEP, expected to begin later in 2022, will pay farmers a tariff of €0.135/kWh, which is higher than the current average wholesale electricity price.

Any difference between the CEP tariff and wholesale electricity price will be supported by the Public Service Obligation (PSO) levy.

Total capacity

The CEP tariff will be paid on up to 80% of a system’s total generation capacity which is exported to the grid. The remainder, if any, will receive a wholesale market price.

This premium price will reduce by €0.01 from 2024 and every year thereafter. It is expected that CEP supports for systems installed from 2028 onwards will be phased out.

Systems up to 5.9kW won’t be eligible for a premium payment

Farmers who install a system up to 5.9kW in size will be eligible for a new Sustainable Energy Authority of Ireland (SEAI) grant of up to a maximum of €2,400.

Systems up to 5.9kW won’t be eligible for a premium payment but will be able to secure a Clean Export Guarantee tariff for any exported electricity.

This means that farmers will still be able to sell their excess electricity at a competitive market rate.