Premium Solar Energy Feed-in Tariffs

You are considering the solar energy feed-in tariffs that have recently taken effect and you are asking yourself how to make them pay? Read on!

Our previous article on solar energy feed-in tariffs where we assumed a small system size (< 6 kWp) with a feed-in tariff below the wholesale rate of electricity is still valid in our opinion, and reflected in the €200 tax exemption which is being applied under the MSS.

This quarter however, from July, the Microgeneration Support Scheme (MSS) has taken effect and offers two classes of solar energy feed-in tariff which you should be aware of – the CEG or CEP.

The Clean Export Guarantee (CEG) applies to systems “producing” up to 5.9 kW, whereas the Clean Export Premium (CEP) applies to systems from 6.0 kW up to 50 kW. *

Here’s how to make sure you qualify for the PREMIUM solar energy feed-in tariff.

Solar Feed-in Tariffs — **Clean Export Guarantee (CEG)**

Irish Government Policy on Micro-generation

In December 2021, two strands of Irish government policy were locked-in.

Firstly, the CRU’s ‘Remuneration of Renewables Self-Consumers’ document was published. Secondly, the Climate Action Plan’s commitment to introduce a Microgeneration Support Scheme (MSS) received government approval.

These two documents define how feed-in tariffs are being implemented in Ireland.

The Microgeneration Support Scheme (MSS) has been calibrated to support an additional 380 MW * of renewables micro-generation in Ireland by 2030 … and … RIGHT NOW is your best opportunity to avail of these supports for the next 15 years.

How to make Feed-in Tariffs work for you

Under Ireland’s new Microgeneration Support Scheme (MSS) you need to install a minimum of 6.0 kW of solar PV to qualify for the top rate CEP.

Apparently you also need to be a NON-DOMESTIC entity, ie farms, businesses, sports clubs, schools or community organisations – who has NOT availed of the SEAI administered MSS installation grant (which replaces the previous SEAI grant system).

For example, a homeowner, how has not applied for the SEAI grant, but who installs enough solar PV (> 6kW) to meet their expected current/future needs will be excluded from the premium feed-in tariff (CEP) and will be remunerated through the CEG.

Although it’s not crystal clear, we conclude that specified range 6 kW to 50 kW relates to the inverter size (which would align with ESB Networks classifications).

To be sure therefore, you need a minimum 6.0 kW (or kVA) single-phase inverter to qualify for the premium feed-in tariff, CEP.

The minimum 6 kW single-phase inverter could carry somewhere up to 9 kWp of solar pv panels. (There are also larger single-phase inverters which can produce higher outputs.)

At the lower end of the Clean Export Premium (CEP) you could be generating in the region of 9,000 kWhrs per annum.

If you export the maximum allowable amount 80% to the grid, then you will be exporting around 7,200 kWhrs per annum.

The Clean Export Premium (CEP) is already set at 13.5 cents/kWhr, therefore your solar PV system could be earning €972 per annum at the lowest end of the range.

At the highest end of the range, a 50 kW three-phase inverter carrying up to 75 kWp is producing approximately ~75,000 units per annum should also qualify for the Clean Export Premium (CEP) payment. With an 80% export limit you can therefore export up to 60,000 units of electricity to the grid, producing €8,100 per annum at the current CEP rate of 13.5 cents/kWhr.

A typical dairy farmer, or small commercial enterprise with a three-phase supply, should have no trouble using the balance of electricity produced from a 75 kWp solar PV system.

The NET GAIN for either type of business should include both, the ANNUAL SAVINGS from 15,000 kWhrs/annum on your utility bill + the NET PAYMENT from the MSS Clean Export Premium (CEP).

Over the predicted 15-year lifetime of the Microgeneration Support Scheme, your modest solar PV investment has accrued significant revenue for your small enterprise.

You will continue to make substantial savings for a further 15-years operational life of your solar PV system thereafter.

The numbers presented under the Microgeneration Support Scheme are worth considering.You can Contact Us to explore your options.

Clean Export Premium Annual Income

There are other variations, and technical limitations which relate to the Microgeneration Support Scheme (MSS) and in particular to the Clean Export Premium (CEP).

These would need to be examined on a case-by-case basis.

Suffice to say, the Microgeneration Support Scheme (MSS) – under the Clean Export Premium (CEP) strand – has the capacity to produce an annual cash income from your solar PV system. This cash income is in ADDITION to whatever you save on your utility bills.

The first payment (or credit) under the MSS should have been applied from June 2022 according to the Commission for Regulation of Utilities (CRU). If your first payment (or credit) has not yet been applied you should contact your electricity supplier for clarification.

Please Contact Us today, if you are interested in achieving these figures.

Footnotes * Some press releases state 260 MW, others state 380 MW. We have sought clarification from the SEAI who are appointed to administer the implementation of the new grant scheme.