Ireland allocates over €1 billion to renewables, solar takes lead
For its 2026 budget, the Irish government will allocate a record €558 million ($648.1 million) for home and community energy upgrade grants, including the popular microgeneration scheme for residential PV, and extend the €400 income tax exemption for microgeneration profits until 2028 to help lower energy bills.
October 9, 2025 Blathnaid O'Dea
Image: Aboodi Vesakran/Unsplash
Share
    
The total fund secured for renewable energy in Ireland’s national budget plan for 2026 amounts to almost €1.1 billion. The plan was published on October 7, and it includes a sizable chunk for the country’s solar PV sector.
Ireland’s Budget 2026 puts aside €558 million for residential and community energy upgrade schemes – including the popular Solar PV scheme – to support the delivery of Ireland’s National Retrofit Plan.
Ireland has some of the highest energy costs in Europe, and in his comments on this year’s budget publication, Ireland’s Minister for Climate, Energy and the Environment, Darragh O’Brien said the investment would ensure “that energy is secure, sustainable and affordable for all.”
The Home Energy Upgrade Loan scheme will continue to be supported. This scheme provides retrofit loans with interest rates available from 3%.
According to O’Brien, “a household could save between €750 and €1,120 per year by installing a deep package of measures.”
He also clarified that the government has extended to 2028 the €400 income tax exemption for profits from the microgeneration of electricity which he claimed will lower bills for people. He said that approximately 150,000 households and businesses have already registered their microgeneration capacity with distribution systems operator ESB Networks and this number is growing.
A lot of this microgeneration capacity comes from solar PV. The Sustainable Energy Authority Ireland (SEAI) which implements these home energy upgrade schemes has previously shared data showing that solar PV has been a major driver in Ireland’s retrofitting progress. There had been some concerns that the increase in people applying for solar panel grants for their homes and businesses in 2024 was happening because of fears the maximum grant value would be reduced in January 2025. It was reduced from €2,100 to €1,800 with the possibility it could be cut by an additional €300 each year in line with falling panel prices.
In its comments on the budget, Solar Ireland appealed to the government to confirm that grants for domestic rooftop solar would remain at their current level of €1,800. “That support is vital to keeping solar accessible for families, including those most in need, while maintaining SEAI’s strong oversight and quality standards,” said the group's CEO Ronan Power.
Overall, this year's allocation to residential and community energy upgrade schemes increased by €89 million compared to the Budget 2025 allocation of €469 million.
The €558 million for 2026 is expected to be further supplemented with additional funding – including an allocation from the European Regional Development Fund – which will provide for an increase in the allocation for the Warmer Home Scheme in 2026.
Value Added Tax (VAT) reduction on electricity and gas bills has been extended to 2030. “The government has extended the VAT reduction [from 13.5% to 9%] on electricity and gas bills until 31 December 2030,” O'Brien said.
A €209 million portion of the total almost €1.1 billion in Budget 2026 will go towards preparing Ireland for the impacts of climate change and €157 million has been put aside for environmental protection and circular economy support schemes.
Between 2026 and 2030, a total of €500 million has been allocated to decarbonizing Ireland’s energy system under the Infrastructure, Climate and Nature Fund that was established as part of last year’s budget. As part of this year’s budget, €21 million has been allocated to public sector retrofitting.
pv-magazine.com |
