Irish authorities are considering a fundamental shift in how domestic solar energy is supported, with discussions underway regarding the potential phase-out of direct payments to homeowners who sell surplus electricity back to the national grid.
Under current policy, households with rooftop solar photovoltaic (PV) systems receive compensation through the Clean Export Guarantee (CEG) scheme. Introduced in early 2022 as part of Ireland’s Microgeneration Support Scheme, the program legally obliges energy suppliers to pay micro-generators for every kilowatt-hour (kWh) of clean electricity sent back into the network. Tariff rates are set competitively by individual energy companies, generally ranging between 15c and 25c per kWh, with annual earnings up to €400 currently exempt from income tax.
However, energy policymakers and regulators at the Commission for Regulation of Utilities (CRU) are evaluating whether continuing these direct export subsidies remains the most effective long-term strategy as rooftop solar adoption continues to surge across the country. Over 66,000 SEAI-backed residential solar installations are now active in Ireland, generating substantial amounts of renewable power during peak daylight hours.
The primary rationale behind a potential phase-out centers on grid efficiency and energy self-consumption. During periods of maximum sunlight, heavy solar feed-in creates local grid congestion when national electricity demand is relatively moderate. Energy experts point out that the main economic and environmental benefit of rooftop solar lies in direct home usage—displacing expensive imported grid electricity that can cost upwards of 34c per kWh—rather than relying on export credits.
If direct export tariffs are gradually phased out, future government incentives are expected to pivot toward supporting localized energy storage solutions, such as home battery systems and smart home technology. By storing excess solar generation during midday hours, homeowners can power their own lights, run heat pumps, or charge electric vehicles during peak evening hours when grid electricity prices and overall demand are at their highest.
Industry representatives stress that any policy adjustment will likely be phased in over a reasonable timeframe to prevent market disruption. Existing solar panel owners are expected to benefit from transition periods, while new installers may be encouraged to integrate battery storage into their systems from the outset.
The potential policy evolution reflects a broader trend across European nations, where initial feed-in tariffs designed to jump-start renewable adoption are gradually replaced by incentives that promote grid stability, local storage, and self-sufficiency.
