Farmers to receive grant to cover 60% cost of solar panel installation

The plans will see farmers receive substantially higher grants for the installation of solar panels on the roofs of farm buildings

Plans will see farmers receive substantially higher grants for the installation of solar panels on the roofs of farm buildings, which would reduce their costs and open up a new income stream.

Farmers will be allowed sell electricity back to the grid for the first time and are to receive significant grants to install solar panels as the Government moves to reduce carbon emissions.

Plans soon to be announced by Charlie McConalogue, the agriculture minister, will see farmers receive substantially higher grants for the installation of solar panels on the roofs of farm buildings, which would reduce their costs and open up a new income stream.

It comes as critical negotiations between Mr McConalogue and Green Party leader Eamon Ryan on climate targets appear to have reached deadlock, meaning a plan laying out detailed emissions reductions for each sector will not go to Cabinet this week as had been expected.

Green party leader Eamon Ryan: Negotiations with the agriculture minister on climate targets seem to have reached a deadlock. Picture: Damien Storan/PA

Currently, farmers can avail of a 40% grant for the installation of solar panels on the roofs of sheds under the target modernisation scheme (Tams). 

However, Mr McConalogue is expected to notify the European Commission shortly of his intention to raise this grant to 60%, a move which requires approval at European level.

He also wants to allow farmers to sell back any electricity not used to the grid, which is currently not permitted.

Enough energy to power over 500,000 homes could be produced from solar panels placed on the roofs of farm buildings, according to the Micro-Renewable Energy Federation.

In a pre-budget submission, the federation has outlined the potential to install at least 3,000 megawatts of PV panels on agricultural buildings "without using one acre of good agricultural land".

Renewable footprint

Speaking to the Irish Examiner, Mr McConalogue said: “Farmers are better placed than anyone to capitalise on the Government’s desire and my ambition to step forward our renewable footprint across the country.

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"There are thousands of shed roofs which are prime locations for solar panels and that is why I am moving to extend the grants available under Tams to assist farmers in being able to invest in solar. 

I want every farmer that wants to install solar on their farm to be able to generate income as well as being able to play a pivotal role in supporting our drive for renewable energy usage

“Through the microgeneration support scheme, I want farmers to derive a new income stream. This will be very important for all farmers as we progress through the decade. 

“Ultimately, this will be good for the environment and good for farmers’ pockets," the minister said.

Emission targets

The agriculture sector has been told to reduce carbon emissions by 22%-30% under the Government's Climate Action Plan, which was published last year.

While Mr Ryan has been pushing for measures that would see agriculture meet the higher end of its reduction target, Mr McConalogue is understood to be pressing for a target on the lower end of the scale.

Irish Farmers' Association president Tim Cullinan said the Government’s policy on climate action would be undermined if it failed to adhere to the three separate actions set down in its own climate legislation.

The Government has to carry out proper assessments of the impact any proposed emissions ceilings will have on food production, farmers’ livelihoods, the sector, and rural Ireland

"Secondly, they must also produce a full report on the carbon leakage effect, as is required in their own act," Mr Cullinan said. 

IFA president Tim Cullinan: Government’s policy on climate action would be undermined if it failed to adhere to the three actions set down in its climate legislation. Picture: Gareth Chaney/ Collins Photos

"It is clear that reducing food production in Ireland will lead to increases in production in other countries with less stringent climate rules. This is likely to increase global emissions rather than reduce them.

"Thirdly, there is an obligation, as set out in the act, to have regard to the ‘distinct characteristics’ of biogenic methane. There is no evidence that the Government has had any regard to this. They must clarify their position on this before they announce any sectoral emissions ceilings."