Phase Two Rollout of the Small-Scale Renewable Electricity Support Scheme

Part of the Bigger Picture

The Micro-generation Support Scheme as a whole is designed to help households, small businesses, farms, and community buildings generate their own electricity from renewable sources. Although the scheme initially focuses on solar-PV, throughout its rollout, other technologies can apply. 

By installing solar panels, micro-wind turbines, micro-hydro systems, or micro-renewable combined heat and power (CHP) units, participants can produce and store electricity, or sell any excess back to the national grid. This excess electricity is sold under a Clean Export Guarantee (CEG), with rates set by the energy provider. 

Additionally, the Sustainable Energy Authority of Ireland (SEAI) offers grants to homeowners for installing solar panels, with plans to extend support to other renewable technologies.

Introducing The Small-Scale Renewable Electricity Support Scheme: SRESS

The Small-Scale Renewable Electricity Support Scheme (SRESS) is a forward-thinking initiative designed to promote renewable energy generation among small-scale and community projects. Operated on a policy lifetime extending to 2030, SRESS provides a 15-year support lifetime for successful applicants.

A Phased Approach to Renewable Energy Support

Phase One: Renewable Self-Consumers (2023-2025)

Phase One targets renewable self-consumers with installations ranging from 50kW to 1MW. To meet Climate Action Plan 2023 and solar PV targets, capital grants are being provided for solar installations until the end of 2025.. The SEAI Non-domestic Microgeneration Grant scheme has been amended to include grants for renewable self-consumers up to 1MW, offering immediate financial support for Solar PV installations. Additionally, with the Clean Export Guarantee (CEG) introduced in 2021, any excess renewable electricity not used on-site can be sold back to the grid, further incentivizing investment in renewable technologies.

Phase Two: Community/Local/SME Projects (2024 Onwards)

Phase Two rollout sees support granted to community, local, and SME projects between 1MW and 6MW, as well as export-only projects below 1MW, through a guaranteed Feed-in Premium (FiP) tariff. This support will be provided without an auction, ensuring a steady premium on market revenues for renewable electricity. 

Different tariffs are set for Small and Medium-Sized Enterprises (SMEs) and Renewable Energy Communities (RECs), with higher rates for RECs to account for the additional barriers they face, such as planning and grid connection challenges. There will be three community rates and three SME rates for both solar and wind.

“It is hoped that the SRESS will provide an easier route to market for community projects and will align more closely to the experience and capacity of the community energy sector”, according to Minister for Energy, Eamonn Ryan, when announcing the commencement of phase two recently.

Phase two aligns with public policy goals, including achieving at least 500MW of local community-based renewable energy projects by 2030.

Phase Three: All Categories Tariff Support (From 2026)

From 2026 onwards, all applicant categories, including renewable self-consumers from 50kW to 1MW, will be supported via a Feed-in Tariff. Final decisions on this support mechanism will be based on updated analysis in 2025.

Key Features of SRESS

Consumer Protection: The premium tariff for export-led projects includes a two-way tariff system to protect consumers from high electricity prices by ensuring projects are not over-compensated.

Eligible Technologies: Initially, the scheme focuses on solar and wind technologies, with potential expansions to include other technologies as the scheme progresses.

Community Participation: SRESS provides a more accessible route to market for community projects compared to competitive RESS auctions. It enables farmers, businesses, and other entities to actively participate in the energy transition. Export-led community projects will receive additional enabling support similar to that developed under the SEAI’s RESS Community Enabling Framework, including technical and financial services.

SRESS represents a significant step towards a sustainable and inclusive energy future, fostering local renewable energy projects and supporting Ireland’s ambitious climate goals.

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