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In April 2019, Minister for Agriculture Michael Creed allocated €10m in funding for renewable energy grants for all farming sectors under the Targeted Agricultural Modernisation Scheme (TAMS). The move extended grant aid for solar PV installations to all sectors as prior to this, separate solar grant aid was available for pig, poultry and egg production farms.
Solar photovoltaic (PV) panels work by absorbing sunlight with photovoltaic cells and generating direct current (DC) electricity. This DC electricity is then converted to usable alternating current (AC) electricity through the use of inverter technology. The grant aid aimed to help cut the electricity costs and carbon footprint of farms.
Initially, grant aid was available to cover 40%, or up to 60% for qualified young farmers, of the cost of a solar PV system up to 6kW. Farmers could also avail of grant aid for battery installations which could store electricity and discharge it when required.
However, last week, it was confirmed that the Department of Agriculture has increased the size of solar PV and battery installations eligible for grant aid under the TAMS scheme. The maximum size eligible for grant aid is now 11kW of solar PV and 6kWh of battery storage. Table 1 outlines the reference cost calculations under the new eligibility.
The cost of solar PV panels, including an inverter and controller, is based on the peak power output rating (units in kilowatts) of the proposed installation. The rechargeable batteries are costed based on the rated storage capacity (units in kilowatt hours) of the proposed installation.
Under the revised reference costs, at the maximum size for both solar PV and battery storage, at the 40% rate the grant would cover up to €7,118 and at 60% would cover up to €10,678.
Will solar panels work on my farm?
Solar PV generates renewable electricity from sunlight. This renewable electricity can be used on many aspects of farms including pumping water, milking, running fans, cooling, water heating, etc.
How do I calculate the right-sized panels for my farm?
Before you can apply for grant aid under TAMS, an on-farm solar PV survey will be carried out by a registered panel installer.
This will help to assess the electricity load of your farm and match solar PV generation as closely as possible to this. The farm’s electricity bills will also give a good idea of electricity usage.
Balance has to be struck between electricity use, when the usage occurs during the day and the size and cost of a system. It is recommend a system should cover slightly less than the overall farm’s electricity needs during the sunnier summer months.
Do I need batteries?
The need for a battery storage will be assessed in the solar survey. Generally for farms with higher electricity demand, little to no storage is required. On conventional farms, storing surplus electricity from peak generation may be cost-effective.
On a dairy farm, for example, surplus electricity from peak generation at midday can be stored for use during milking and cooling in the evening.
Can panels be fitted on to any kind of roof?
Yes, once the roof is structurally sound. However, the panels cannot interfere with the ventilation requirements or weather tightness of the farm building or be mounted on or over roof lights.
Ground and wall-mounted panels are also permitted.
Does the roof need to be facing a certain direction?
South facing roofs will give the highest electricity generation. However, east-west facing panels will generally give a better spread of generation throughout the day despite having lower overall generation potential.
Will my location affect the potential for electric generation?
The south and southeast of the country has the highest solar generation potential. It is relatively easy to get a radiation report done, which can help to predict expected solar generation.
What’s the payback period?
It goes without saying that every farm is different but depending on the grant secured, the technology used, location and the benefit of capital allowances, payback can be between three and six years.
Can I sell the surplus electricity I generate?
No. Under the terms and conditions of TAMS, electricity generated from solar PV panels must be consumed on the applicant’s farm for farming purposes. It is not permitted to use or export the electricity generated for domestic, commercial or non-farming purposes.
For panels installed without the use of TAMS grants, it is expected that there will be a tariff system in place by June 2021, which will facilitate the sale of surplus electricity. However, there have been no details on the tariff rate yet.
What do I need to apply for grant aid?
The TAMS application can only be made online on the Department’s online service page, agfood.agriculture.gov.ie.
When making an application, the applicant must submit a solar survey signed by the installer. They must also include a farmyard plan and detailed drawings of the location of the solar installation, its orientation, the location of other buildings, obstructions such as trees, and mounting type.
Once your application is approved, you have 12 months to complete the investment and submit the payment claim.
Do I need planning permission?
Planning permission is required for solar PV installations greater than 50m2 or 50% of the building’s roof space. To put this in context, a 6kW solar PV system represents 20 panels which occupy around 33m2 of roof space.
Do I have to notify the ESB?
Yes, you need to send the details of your plans to ESB Networks on an NC6 micro-generation notification form. If there is no objection from ESB Networks within 20 working days, the installation can proceed.
Who can install the panels?
Solar PV panels can only be installed and commissioned by Department-accepted installers. The full list of installers is available on the Department of Agriculture’s website. There are currently 41 approved installers on the list.
What’s the lifetime and maintenance of the panels and batteries?
Most panels offer a minimum of a 10-year product and 25-year performance warranty but panels with warranties of up to 30 years are available. It is advised that you study the details of the warranty before you invest. The quality of the panels will also significantly affect their expected lifetime. The same also applies for batteries where differences in discharge rates between manufacturers can be substantial.
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