TAMS 3 funding for solar panels will 'help meet appetite' for renewable projects in farming

In order to encourage the purchase of solar investments reducing dependence on fossil energy by farmers, the solar scheme will be ringfenced with its own investment ceiling of €90,000 and will be grant-aided at the enhanced rate of 60%.

Funding for solar panels on farms in the new Targeted Agricultural Modernisation Scheme (TAMS 3) will help to "meet the appetite" in the farming community for renewable projects, Ifac has said.

The farming, food, and agribusiness specialist professional services firm has welcomed Monday's announcement of funding for capital investments on farms.

The first tranche of TAMS 3 will open on Wednesday (February 22) with solar panels on farms being the first available investment.

TAMS will be in place for five years with a budget of €370m. It will include 10 schemes.

A welcome move

Ifac's head of farm support Philip O’Connor said that this week's opening is a "very welcome move" for Irish farmers.

"Tranche one of the scheme will be music to the ears of many of our clients and farmers all across the country who are committed to farming sustainably and eager to take climate action," Mr O'Connor said.

"We know this because last week our fifth annual farm report, containing the views of 1,160 Irish farmers, revealed that both spiralling input costs and climate action to meet Ireland’s climate targets are very much front of mind. 

"Our report confirmed that more than half [52%] of Irish farmers say the biggest barrier to adopting renewable projects is the level of financial investment required coupled with the low returns, and over half [54%] are concerned about their electricity and gas costs at home.

"This announcement about this targeted scheme for solar will help to meet the appetite in the farming community for farmer-developed renewable projects and help farmers to proactively tackle rising energy costs and generate their own power."

Mr O'Connor added that this will have a positive long-term impact on the sector overall, rural Ireland, and the environment.

Investment ceiling and enhanced grand aid rate

In order to encourage the purchase of solar investments reducing dependence on fossil energy by farmers, the solar scheme will be ringfenced with its own investment ceiling of €90,000 and will be grant-aided at the enhanced rate of 60%.

"At a time of rising energy costs, I have prioritised the introduction of the solar investments first which will be open from Wednesday," Minister for Agriculture Charlie McConalogue said.

"In addition to the higher grant rates, I have also increased the size of the available investments from 12kW to 62kW. 

"The scheme will enable every farmer to generate their own power for their dwelling and holding and will help to achieve a more sustainable rural economy, assisting farmers in reducing energy costs on their holdings."

Under TAMS 3, the ceiling for investment will be reset to €90,000 per holding for the duration of the scheme.

This means every farmer who benefitted under TAMS 2 can reapply in full under the new scheme. 

In addition to the solar panels, the other investments will become available on a phased basis during tranche one which will close on June 16.