Microgeneration means producing your own electricity on a small scale, typically at home or on a farm, using renewable technologies like solar panels, small wind turbines or micro-hydro systems. Any surplus power you do not use flows back into the national grid, and since 2022 your electricity supplier must pay you for it. Think of it as turning your roof into a tiny power station - you consume what you need and sell the rest.
Ireland's Micro-generation Support Scheme (MSS) is driving rapid uptake. By the end of Q3 2024, over 66,850 solar PV systems had been installed under SEAI grant schemes, with new applications hitting an all-time high of more than 21,000 in the first nine months of the year alone. The MSS targets 380 MW of installed microgeneration capacity across approximately 70,000 buildings, contributing to the Climate Action Plan's target of 8 GW of solar capacity by 2030.
🌿 Eligible Technologies
The MSS and the Clean Export Guarantee (CEG) are not limited to solar panels. The scheme covers any small-scale renewable electricity generator, including:
- 🌿 Solar PV - By far the most common technology, accounting for the vast majority of domestic installations. A typical residential system in Ireland is 3-4 kWp (around 8-10 panels) and generates approximately 3,000-3,800 kWh per year
- 🌿 Small wind turbines - Suited to exposed rural sites with consistent wind, though planning and noise considerations make them less common than solar for residential use
- 🌿 Micro-hydro - Small-scale water turbines for properties with a suitable stream or river, particularly in upland areas
- 🌿 Micro-CHP (combined heat and power) - Systems that generate electricity as a byproduct of heating, using renewable fuels
For grid connection purposes, microgeneration is defined as systems up to 6 kW on a single-phase connection and up to 11 kW on a three-phase connection. Systems between 50 kW and 200 kW qualify as small-scale generation under a separate support framework.
🌿 The Clean Export Guarantee
The Clean Export Guarantee (CEG) is the mechanism that pays you for surplus electricity. Under the MSS, all electricity suppliers must offer a competitive rate for exported power. The CEG rate is not fixed nationally - each supplier sets its own tariff, and rates vary significantly.
As of early 2026, export tariffs offered by Irish suppliers range from approximately 16c to 25c per kWh (including VAT). Pinergy typically offers the highest rate at 25c/kWh, with Energia at 18.5c/kWh and Electric Ireland at 19.5c/kWh. These rates are applied as credits on your electricity bill rather than a separate bank payment.
The real financial benefit of microgeneration, however, lies in self-consumption rather than export. Every kilowatt-hour you use directly from your panels avoids buying from the grid at 35-40c/kWh, roughly double what you receive for exporting. A typical household without battery storage self-consumes 40-50% of generated electricity. Adding a battery can push this to 70-85%, dramatically improving the payback period.
🌿 How Export Measurement Works
You need a smart meter to receive CEG payments. The smart meter records both the electricity you import from the grid and the electricity you export, in half-hourly intervals. ESB Networks has now installed smart meters in over four out of five Irish homes as part of the national rollout. If you install a microgeneration system and do not yet have a smart meter, ESB Networks will prioritise installation within four months of your NC6 connection form being processed.
🌿 Grants, Planning and Tax
🌿 SEAI Grants
The SEAI Solar Electricity Grant for 2025/2026 offers up to EUR 1,800 for residential installations (reduced from EUR 2,100 in January 2025 as part of a planned annual reduction reflecting falling panel costs). It is calculated at EUR 900 per kWp for the first 2 kWp and EUR 200 per additional kWp up to 4 kWp. Your property must have been built and occupied before 31 December 2020, and you must use a Safe Electric registered installer. There is no means testing.
For businesses, the Non-Domestic Microgen Grant (NDMG) provides higher support per kWp, with no property age restriction.
🌿 Planning Permission
Most residential solar installations are exempt from planning permission. Since October 2022, there is no limit on the area of rooftop solar panels that can be installed on homes anywhere in Ireland. The previous 12 m2 / 50% roof area restriction has been removed. Panels must not protrude more than 300 mm above the roof surface. The exemption does not apply to protected structures or properties in architectural conservation areas, where planning permission may be required.
🌿 Tax Treatment
The first EUR 600 of annual income from CEG payments is exempt from income tax, up from EUR 400 after Budget 2027. This disregard runs to the end of 2028. For the vast majority of domestic installations exporting under 6 kW, total annual export earnings fall within this threshold, meaning no tax return is needed for microgeneration income alone.
🌿 How Much Can a Typical Irish Home Earn?
The numbers depend on system size, orientation, self-consumption patterns and supplier tariff. For a typical 4 kWp system generating around 3,800 kWh per year without battery storage:
- 🌿 Self-consumption of ~50% saves approximately EUR 700-800 per year at current grid electricity prices
- 🌿 Exporting ~1,900 kWh at 20c/kWh earns approximately EUR 380 per year in CEG credits
- 🌿 Combined annual benefit: roughly EUR 1,000-1,200
- 🌿 After the SEAI grant, a typical installation costing EUR 6,000-8,000 pays for itself in 5-7 years
With a battery (adding EUR 3,000-5,000 to the upfront cost), self-consumption rises significantly, reducing grid import costs further. However, the payback period for the battery itself is longer, typically 8-12 years depending on usage patterns and electricity price trends.
🌿 Getting Connected
The process for connecting a microgeneration system to the grid is straightforward. Your installer submits the NC6 form to ESB Networks on your behalf, which registers your system and triggers smart meter installation if needed. Once the form is processed and your smart meter is active, your electricity supplier begins recording export data and applying CEG credits to your bill. The entire process from installation to first payment typically takes 2-4 months.
🌿 Frequently Asked Questions
🌿 Do I need a smart meter for microgeneration?
Yes. A smart meter is required to measure exported electricity accurately and receive CEG payments. If you do not have one, ESB Networks will install one free of charge within four months of your NC6 form being processed. Over 80% of Irish homes already have smart meters installed.
🌿 Can I sell electricity from solar panels in Ireland?
Yes. Under the Micro-generation Support Scheme, all electricity suppliers must offer a Clean Export Guarantee tariff for surplus renewable electricity you export to the grid. Rates currently range from 16c to 25c per kWh depending on your supplier. The first EUR 600 of annual export income is tax-free (raised from EUR 400 in Budget 2027).
🌿 What is the maximum SEAI grant for solar panels in 2026?
The maximum SEAI Solar Electricity Grant is EUR 1,800 for a system of 4 kWp or above. The grant is structured at EUR 900 per kWp for the first 2 kWp and EUR 200 per additional kWp. Your home must have been built and occupied before 31 December 2020.
🌿 Is microgeneration only for solar panels?
No. The MSS and CEG apply to any renewable electricity generator up to the microgeneration threshold, including small wind turbines, micro-hydro and micro-CHP systems. Solar PV is the most popular technology due to its simplicity, falling costs and Ireland's generous planning exemptions, but the scheme is technology-neutral.