Home Q&A: Do I have to pay tax on my solar feed back to the grid?

There is a generous tax-free threshold for any credit due to solar-PV being sold back to the grid (the Clean Export Guarantee, CEG).

Question

Do I have to pay tax on my solar feed back to the grid?

Answer

Yes and no. There is a generous tax-free threshold for any credit due to solar-PV being sold back to the grid (the Clean Export Guarantee, CEG). This is €400 per year for one person named on an electricity bill, and € 800 if the bill is put in two names. 

After this threshold is passed (and with a very large array, it could go over € 400 credit in the space of a year without trouble), those additional kWhs being credited by your supplier (around 19c to 25c to you) are considered income. Despite it never touching your bank account, it is up to you to report credit over the threshold to Revenue at the end of the tax year. 

This income will be rolled into your annual return and taxed at 20% or 40%, depending on your pay and personal allowances. 

If you are a couple and you think you might get anywhere near € 400 in credit, just change your contract details with your power supplier to include the two of you, doubling the threshold to € 800. 

Suppliers do not deduct this taxable income at source; it is self-declared by the solar-PV user.

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