The Government should reconsider plans to cut grant supports for the installation of solar and battery systems by €300 in January, the Micro-Renewable Energy Federation (MREF) has warned.

The proposed cut to the installation grant was a “mistake” and would undermine confidence in the renewable sector, the MREF claimed.

The grant for the installation of solar and battery systems is currently set at €1,800 for domestic solar and €300 for an electric vehicle charger.

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“MREF has highlighted the risks in our budget submission that these plans will undermine confidence and unravel the great progress that has been achieved with micro-generation where renewable solar power is now mainstream,” said MREF chair Ciarán Kells.

“The momentum that has built up, and the businesses and jobs that have been created, within the micro-generation sector need to be supported,” Kells maintained.

MREF welcomed other aspects of the budget relating to renewables, particularly the extension of the €400 income disregard for micro-generated renewable power sold back to the grid by households and farms.

“We very much welcome the extension of the income tax disregard of €400 per year out to 2028. This was a key submission by MREF in our Budget submission,” said Kells.

“We are delighted that the Government and Minister Donohoe have agreed with the case we were making that homes and farms need to be incentivised in continuing to adopt renewable power through micro-generation and the installation of solar PV and battery systems,” he added.

“We are also pleased that Minister Donohoe chose to acknowledge the growing importance of solar PV systems in our green energy landscape by noting that there are now 140,000 homes with solar PV systems installed.”

Moreover, MREF applauded the extension of the Accelerated Capital Allowances Schemes for energy efficiency equipment to the end of 2030.