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Irish Post
a day ago
- Business
- Irish Post
Government urged to keep solar panel income exemption
THE solar panel scheme, which allows micro-generators to receive up to €400 a year tax-free by selling surplus electricity back to the grid, is scheduled to end on December 31. A final decision on whether to renew it is expected in the government's October's budget. This exemption has been widely credited with encouraging over 130,000 households to install solar panels, offering both environmental and financial relief during a period of persistently high electricity prices. Energy commentator Daragh Cassidy has described the scheme as highly effective, saying it supported the national effort to reduce carbon emissions while also easing the pressure on household budgets. He warned that scrapping the exemption would be a mistake, especially as solar panels still carry significant upfront costs, even with grants in place. The €400 incentive, he said, shortens the payback period and makes the investment more attractive. Under current rules, any income from micro-generation up to €400 annually is exempt from income tax, USC, and PRSI. The exemption applies per named individual on an electricity bill, not per household, which means dual-income households can potentially earn up to €800 tax-free. Officials within the Department of Finance have advised that the exemption should be maintained, citing both its low fiscal impact and its alignment with national climate commitments. The forgone tax revenue is estimated at €7 million per year, or about €50 per micro-generator. This tax relief incentivises people to produce renewable electricity mainly for their own houses, while also benefiting the grid with any excess energy. This potential policy shift comes as Ireland's energy system undergoes rapid change. Recent analysis from the Energy Institute and KPMG shows that the country made a lot of progress in reducing emissions in 2024, including an 8.9% drop from the energy sector and a slight decline in transport emissions. These numbers were mainly due to the closure of Ireland's last coal-fired power station and a greater reliance on imported electricity from Britain. However, fossil fuels still account for over 80% of the primary supply for Ireland. Natural gas alone fuels more than 40% of electricity production. Although solar output jumped by 70% in 2024, it still contributed only 3% of total electricity demand. Grid capacity is straining to keep up with demand, mainly due to the expansion of data centres and the electrification of heating and transport. Major projects, such as the Celtic Interconnector, which will allow greater electricity imports, have been delayed. Meanwhile, the budget for emergency power generation has soared to more than €1.3 billion, far above initial projections. Electricity costs also remain a major concern. Irish people pay some of the highest rates in the EU, and household bills remain around 30% above the European average. These high prices have been cited by businesses as a growing threat to investment and long-term viability in the country. The government's stated goal of achieving 80% renewable electricity by 2030 remains in reach, but the Sustainable Energy Authority of Ireland has warned that current efforts fall short of meeting both domestic and EU carbon targets. In this wider context, the future of the €400 tax exemption becomes more than just a budgetary issue. It's seen as a signal of how committed the state is to supporting people's contributions to renewable energy. Removing it could deter new installations and undermine public support at a time when Ireland needs to speed up its energy transition. With energy costs still high and no new credits planned for the coming winter, many are calling on the government to maintain the exemption as a smart, low-cost way to keep momentum going. See More: Daragh Cassidy, Enviroment, Renewable Energy, Solar Energy, Tax
Irish Times
2 days ago
- Business
- Irish Times
Grid investment key to cutting fossil-fuel use
Proposed spending on the State's electricity grid will be key to cutting our dependence on fossil fuel, says an expert. Oil and gas accounted for 81.4 per cent of total Irish energy consumption last year, an increase of 0.7 per cent on 2023, according to a report published by the Energy Institute, a global body. Planned investment by national grid company EirGrid and ESB Networks would boost the use of electricity and renewables, aiding the Republic in cutting fossil fuel consumption, said James Delahunt, head of energy and natural resources (Ireland) at KPMG, following its publication. [ How Ireland went from first to last in the race to develop offshore wind energy Opens in new window ] The Commission for the Regulation of Utilities (CRU), which oversees the energy sector, recently proposed approving total spending of €14.1 billion up to 2030 by EirGid and ESB Networks, and could allow scope for up to €19 billion depending on the progress each company makes with their plans. The proposal is going through consultation. READ MORE Mr Delahunt, whose firm collaborated with the Energy Institute on the report, said it was likely that both companies would get approval for the spending. EirGrid is responsible for the national grid, which transports electricity from power plants, while ESB Networks manages the lines that bring electricity to individual customers' homes and businesses. Their proposed investment is likely to add up to €16 a year to household electricity bills, according to the CRU, which is why the regulator must approve their plans. 'I don't think the Department of Finance have any respect for the tourism industry' Listen | 41:44 Renewables generate about 40 per cent of electricity used in the Republic annually, mostly wind and solar, with natural gas producing the same amount. Imports account for most of the balance. However, road transport, manufacturing and heating still rely heavily on oil and gas for energy, according to Mr Delahunt. Government climate plans aim to cut some of this dependence by electrifying transport and heat. It is also bidding to increase the use of biofuel for heating. From next year, suppliers of fossil fuels for heating will be obliged to include some renewables in their product offerings. According to the Government, that will start at 1.5 per cent of the energy they supply from next year, rising to 3 per cent the following year. Those targets could increase after a review of the scheme in 2028. Mr Delahunt said the Renewable Heat Obligation , as the scheme will be known, was a welcome step in the right direction. The report by the London-headquartered Energy Institute, an international body of professionals working in the industry, confirmed that the Republic ranked eight out of the top 10 countries in the world for renewable electricity use. According to the Sustainable Energy Authority of Ireland , total greenhouse gas emissions last year fell 2 per cent to 53.75 million tonnes.
Indian Express
4 days ago
- Business
- Indian Express
Top 10 countries with most solar power installed 2024-25: India makes podium; beats Japan
Top 10 countries with the most solar power installed 2024-25: One of the cleanest and most sustainable power sources available is solar energy, which is captured straight from the sun using solar panels. From homes and workplaces to factories and electric vehicles, these panels can capture sunlight and transform it into electricity. Unlike fossil fuels, solar power does not contaminate the air and is a renewable resource, which means we can continue to generate energy as long as the sun is shining. Over the years, solar technology has become more affordable, more efficient, and easier to install, whether on rooftops, in open fields, or even floating on water. It operates silently, requires minimal upkeep, and is playing a crucial role in the global shift to clean energy. The demand for solar power is climbing each year, driven by both accessibility and the urgency to cut emissions. Just a few decades ago, in 1990, renewables made up only 3 per cent of the global energy mix. Since then, nations have worked hard to decarbonise, and renewable energy has grown faster than any other source. Since 2006, its growth has been over four times the global average increase in total energy demand, and in the past five years, that multiple has risen to five. The Asia Pacific region, especially China, is leading this transformation. China alone accounted for nearly 60 per cent of renewable power additions in 2024, and was responsible for 43 per cent of avoided fossil fuel use, followed by Europe (21 per cent) and North America (20 per cent). With 887,930 MW of installed solar capacity, China tops the global list, followed by the US, India, and Japan. India, meanwhile, is rapidly scaling up. With over 97 GW of installed solar capacity and an annual growth rate of 33.7 per cent, the country is blending large-scale solar farms with widespread rooftop systems. Its solar expansion is part of a broader mission to meet surging electricity needs, cut carbon emissions by 2030, and achieve net-zero status by 2070, an effort that reflects both ambition and urgency. Source: Energy Institute's Statistical Review of World Energy 2025
Irish Times
5 days ago
- Business
- Irish Times
Fossil fuels behind over 80% of Irish energy use last year
Ireland relied on fossil fuels for more than 80 per cent of the country's energy consumption last year, despite ongoing efforts to decarbonise, new figures show. Wind and solar power , meanwhile, generated more than 40 per cent of electricity used in the Republic, ranking it eighth out of the world's top 10 countries for its use. The data is contained in a report from global body, the Energy Institute, published on Friday. Fossil fuels accounted for 81.4 per cent of overall Irish energy consumption last year, an increase of 0.7 per cent on 2023. READ MORE The Energy Institute's statistical review of world energy showed the Republic used 148,700 barrels of oil a day last year, up from 147,500 the previous year. Continued reliance on oil and gas to power transport and manufacturing partly accounted for the dependence on fossil fuels, said James Delahunt, head of energy & natural resources, Ireland, with accountants KPMG, which collaborated on the institute's report. He argued that the findings 'underscored the need to prioritise policies' to deliver renewable energy. [ Public 'unsure what big switch to clean energy means and how to play their part' Opens in new window ] Despite the levels of fossil fuel use, Mr Delahunt said the report also confirmed the State was making progress in boosting green energy use and cutting carbon dioxide emissions . 'The statistical review shows that Ireland has the capability and resources to build on the successes delivered in 2024,' he said. According to State body, the Sustainable Energy Authority of Ireland , total greenhouse gas emissions last year fell 2 per cent to 53.75 million tonnes. Tony Lowes, of Friends of the Irish Environment, argued that the Energy Institute's report demonstrated the Government's continued failure to meet legal obligations to make specific plans to cut emissions in line with the Paris Accord. A spokeswoman for the Department of Climate, Energy and the Environment said that the Government had pledged to cut reliance on fossil fuels and reduce greenhouse gas emissions by 51 per cent from 2018 to 2030. Under the Paris Agreement, Ireland faces fines estimated at up to €26 billion if it fails to cut emissions by that amount in 2030 and reach 'net zero' by 2050.
RTÉ News
5 days ago
- Business
- RTÉ News
Fossil fuels continue to dominate Ireland's energy mix
Fossil fuels were Ireland's primary energy source last year, accounting for 81% of primary energy supply, according to an analysis of global energy data by KPMG. Ireland now ranks 8th globally for wind and solar penetration as a share of total electricity generation however, though the growth in electricity demand outpaces the development of renewables. The analysis found, despite notable advancements, Ireland still faces significant hurdles in securing a sustainable energy future. The Energy Institute, in collaboration with Kearney and KPMG, released the 74th edition of the Statistical Review of World Energy, offering a look at global energy data for 2024. The review paints a compelling picture of Ireland's progress, which saw a remarkable decrease in emissions against a backdrop of robust energy demand, driven by the closure of the country's last coal-fired power station and strategic renewable energy policies. Emissions in the energy industries reduced by 8.9% in 2024, the third consecutive year a decrease was observed, partially due to an increase in electricity imports from Great Britain. Transport emissions marginally decreased by 1.2% despite a 4.1% increase in the national fleet. This is the first decrease in transport emissions since 2020 and a result of increased adoption of biofuels and electricity. In contrast, residential emissions increased by 4.9% in 2024 with consumption of all non-renewables excluding peat increasing. However, fossil fuels remained as Ireland's primary energy source in 2024, accounting for 81.4% of primary energy supply. This corresponded to an increase of 0.7% from 2023, despite drops in coal and peat. Ireland remains heavily dependent on natural gas which fuelled 42% of electricity generation in 2024. "The statistical review shows that Ireland has the capability and resources to build on the successes delivered in 2024," said James Delahunt, Head of Energy & Natural Resources, KPMG in Ireland. "However, growing strategic risks underscore the need to prioritise policies and initiatives that will efficiently and cost-effectively deliver renewables and system flexibility to phase fossil fuels out of the economy." Challenges ahead Despite the gains, Ireland grapples with critical challenges, including security of supply concerns, rising electricity prices, and difficulties delivering major infrastructure projects. The Temporary Emergency Generation Programme, intended to address supply concerns, has seen its budget balloon from €400 million to an anticipated €1.3 billion. Additionally, a planned Floating Regasification Storage Unit to facilitate LNG imports is estimated to cost an additional €900m. Electricity prices surged in 2024, positioning Ireland as having the highest non-household electricity costs in the EU, with household rates 30% above the EU average, second only to Germany. These steep prices have been flagged by businesses as a significant threat to investment and business viability, posing risks to Ireland's ambitious decarbonisation goals. In addition, Ireland's infrastructure also faces major obstacles, with grid capacity struggling to keep pace with rapid demand increases driven by data centre expansion and increased electrification in heating and transport. However, the €200 billion National Development Plan aims to address these challenges through major grid infrastructure upgrades to support both economic growth and renewables integration in tandem. Electricity demand growth outpaces renewables development Domestic electricity demand rose by 4.1% in 2024, while the share of renewable generation decreased marginally from 40.7% in 2023 to 39.6% in 2024. Electricity imports via interconnectors were the third largest source of supply, contributing 14% of the mix. The €1bn Celtic Interconnector project, now delayed to spring 2028, will provide crucial electricity import capacity to meet our rapidly expanding electricity demand. 2024 saw a 71% increase in solar power production, outpacing the growth of all other renewable technologies and serving 3% of electricity demand. Ireland now ranks eight globally for wind and solar penetration as a share of total electricity generation, with Denmark leading the way. While substantial progress has been achieved, Ireland faces significant challenges to delivering the goal of 80% renewable electricity by 2030, with the SEAI warning that current efforts fall short of carbon budgets and EU targets.
