Ireland is in the middle of the biggest energy transformation in its history. The government has committed to generating 80% of electricity from renewable sources by 2030, up from around 40% today. Wind already provides a third of the nation’s power, solar capacity has tripled in two years, and the first direct electricity link to continental Europe is being laid under the Celtic Sea.
But renewable energy is not just a story about wind farms and government targets. It directly affects your home, your energy bills and your options for reducing costs. From SEAI grants for solar panels and heat pumps to microgeneration export payments and the rising carbon tax on fossil fuels, the shift to renewables is reshaping how Irish households heat, power and pay for energy.
This guide covers where Ireland stands on renewable energy in 2026, what the main technologies are, what they mean for homeowners, and how you can benefit from the transition.
🎯 Ireland’s Renewable Energy Targets – Where Are We?
Ireland’s Climate Action Plan sets out some of the most ambitious energy targets in Europe. The headline figures are clear, but progress is uneven across different sectors.
🔹 Electricity – 80% Renewable by 2030
The target is for at least 80% of Ireland’s electricity to come from renewable sources by 2030. In 2024, renewables accounted for approximately 40-41% of total electricity generation, with wind providing around a third of national demand.
Ireland currently has nearly 8 GW of renewable electricity generation capacity installed. This breaks down as roughly 5 GW of onshore wind, over 2.3 GW of solar PV, and smaller contributions from hydro, biomass and other sources.
To hit the 80% target, Ireland needs to reach approximately 22 GW of total renewable capacity by 2030 – made up of 9 GW of onshore wind, 5 GW of offshore wind and 8 GW of solar PV.
The honest assessment? Ireland will likely miss the 80% target. The Minister for Climate, Energy and the Environment has acknowledged that emissions reductions are projected in the “mid to high 20s” percent by 2030 rather than the 51% target. Offshore wind, which is critical to the plan, is years behind schedule. But the direction of travel is clear, and the pace of deployment – particularly in solar – is accelerating rapidly.
🔹 Heat – The Hardest Sector to Decarbonise
Ireland’s heating sector remains heavily dependent on imported fossil fuels, particularly oil and natural gas. Under EU rules (RED III), Ireland needs to increase the share of renewable energy in heat to approximately 15.8% by 2030 – up from around 6.3% in 2020.
The main levers for decarbonising heat are heat pumps (replacing oil and gas boilers in homes), biomethane (renewable gas injected into the gas network) and the new Renewable Heat Obligation scheme launching in mid-2026.
The government target is 400,000 heat pump retrofits in existing homes by 2030. Current progress is well behind this pace, though the massive increase in SEAI grants for 2026 – with up to €12,500 available for heat pumps – is designed to accelerate uptake.
🔹 Transport – Electrification Gathering Pace
Ireland targets 845,000 electric vehicles on the road by 2030. EV sales surged 48.7% in January 2026, with battery-electric vehicles now outselling traditional petrol and diesel cars. The combination of falling EV prices, improved charging infrastructure and rising carbon tax is driving adoption.
🔹 Overall Emissions – Legally Binding Carbon Budgets
Ireland’s Climate Action and Low Carbon Development Act 2021 established a legally binding framework for the transition to a climate-neutral economy by 2050. Sectoral carbon budgets require emissions reductions of between 25% and 75% per sector by 2030 relative to 2018 levels.
Total national emissions were around 60.8 million tonnes of CO₂ equivalent in 2022, with more than half directly related to burning fossil fuels for energy.
💨 Wind Energy in Ireland
Wind is the backbone of Ireland’s renewable energy system and the single biggest reason Ireland has made more progress on clean electricity than most comparable countries. Ireland is second only to Denmark in the share of electricity generated from wind among countries with gigawatt-scale systems.
🔹 Onshore Wind – 5 GW and Growing
Ireland reached over 5 GW of installed onshore wind capacity in early 2025 – a significant milestone. There are hundreds of wind farms across the country, concentrated in the windier western and south-western counties where average wind speeds exceed 8 metres per second.
Onshore wind currently accounts for around 99% of Ireland’s total wind capacity and supports nearly 6,000 jobs. It remains the cheapest form of new electricity generation and the most mature renewable technology in Ireland.
However, onshore wind faces growing challenges. Land availability is becoming more constrained, community opposition to new turbines is increasing in some areas, and the best onshore sites have largely been developed. New wind energy development guidelines and planning reforms are expected to help, but onshore wind alone cannot deliver the capacity Ireland needs.
The Renewable Electricity Support Scheme (RESS) is the main mechanism for supporting new onshore wind projects. RESS auctions award contracts for difference to renewable generators, guaranteeing a minimum price for their electricity. RESS 5 was delivered in 2025, and RESS 6 is being progressed for 2026.
🔹 Offshore Wind – Ireland’s Biggest Opportunity
Offshore wind represents Ireland’s single largest renewable energy opportunity – and its biggest delivery challenge. The targets are extraordinary: 5 GW by 2030, 20 GW by 2040 and 37 GW by 2050. That 2050 target represents roughly six times Ireland’s current peak electricity demand.
Ireland’s Exclusive Economic Zone (the maritime area under Irish jurisdiction) is approximately seven times the country’s landmass, with powerful and consistent Atlantic winds. The potential is enormous – achieving the 2050 target could be worth at least €38 billion to the Irish economy.
But as of early 2026, Ireland has just one operational offshore wind farm – the 25 MW Arklow Bank installation commissioned in 2004, which is nearing the end of its operational life.
The first major wave of offshore wind is now moving through the planning system. In 2023, Ireland’s first offshore wind auction (ORESS 1) awarded 3.1 GW of capacity to four projects off the east coast. These Phase One projects all submitted planning applications in 2024 and have the capacity to deliver the bulk of the initial 5 GW target. Key projects include:
🌿 Codling Wind Park – a proposed 1,300 MW project in the Irish Sea off County Wicklow, a 50/50 joint venture between Fred. Olsen Seawind and EDF Renewables. Construction is expected to commence in 2026 with operation by 2030.
🌿 Dublin Array – developed by RWE Renewables and Saorgus Energy, this major project off the Dublin coast is expected to begin construction in 2026.
🌿 Sceirde Rocks – a 450 MW project off the coast of Connemara, developed by Corio Generation. Planning application submitted in January 2025.
🌿 North Irish Sea Array – a 500 MW project being developed by Statkraft, Europe’s largest generator of renewable energy.
A second offshore wind auction (ORESS 2, known as Tonn Nua) targeting a 900 MW project off the south coast was announced in May 2025, following the government’s approval of the South Coast Designated Maritime Area Plan.
Despite the strong pipeline, industry observers and WindEurope expect Ireland to have only around 1 GW of offshore wind operational by the end of the decade – well short of the 5 GW target. Permitting delays, port infrastructure gaps and grid connection challenges are the main bottlenecks.
EirGrid, the national grid operator, has launched a procurement programme worth over €1 billion for offshore transmission infrastructure and is developing two offshore substation platforms off the south coast.
☀️ Solar Energy in Ireland
Solar is the fastest-growing renewable energy source in Ireland – and one of the great success stories of the past three years. Despite Ireland’s reputation for cloudy skies, solar PV works well here, and the numbers prove it.
🔹 Installed Capacity – Tripled in Two Years
Ireland reached 2,345 MW (2.3 GW) of installed solar capacity by December 2025, more than tripling from 2023 levels. In 2025 alone, the country added over 1,000 MW of new solar capacity – more than double the 452 MW added in 2024.
Of the total capacity, approximately 1,322 MW comes from utility-scale solar farms and 727 MW from distributed rooftop systems. Ireland hit 1 GW of rooftop solar capacity in December 2025, spread across more than 170,000 homes, farms, businesses and community buildings.
The 2030 target is 8 GW of total solar capacity. With 2.3 GW installed, 1.7 GW in the construction pipeline and strong policy support continuing, this target is increasingly achievable – though it requires sustained delivery.
🔹 Solar for Your Home
For Irish homeowners, solar PV is one of the most accessible and financially compelling renewable technologies available. A typical 4 kWp rooftop system generates around 40% of an average household’s annual electricity needs, and the economics have improved significantly:
🌿 The SEAI grant of up to €1,800 is confirmed for 2026
🌿 0% VAT on residential solar panel supply and installation
🌿 Typical 4-5 kWp systems cost around €6,000-€8,000 after grant support
🌿 Export payments for surplus electricity sent back to the grid – Electric Ireland pays 19.5c per kWh and Energia pays 18.5c per kWh
🌿 €400 income tax disregard for microgeneration income, extended to end of 2028
🌿 A well-installed system pays for itself in approximately 5-7 years
Solar PV also improves your BER rating, which increases property value and can unlock green mortgage rates. Combined with a heat pump, solar panels can power your heating system during daylight hours, making the two technologies highly complementary.
For full details on costs, grants and the application process, see our complete solar panels guide.
🔹 Utility-Scale Solar Farms
Ireland’s first large-scale solar farm was energised in County Meath in 2022. By 2025, there were 19 operational utility-scale sites with 885 MW of capacity, compared to just 349 MW in 2023. A further 752 MW is in the construction pipeline across 30 projects.
RESS 5 awarded 860 MW of new solar projects in 2025, reinforcing solar’s position as Ireland’s fastest-deployable renewable technology. Solar generation reached new highs during 2025, and during summer months solar supplied more than one-fifth of national electricity demand.
The growth of utility-scale solar has been complementary to wind – solar generates most strongly during daytime summer months when wind output tends to be lower, providing a more balanced and stable energy supply across the year.
🔥 Biomethane – Renewable Gas for Ireland
Biomethane is produced by processing organic waste (farm slurry, food waste, crop residues) through anaerobic digestion and then purifying the resulting biogas. Because biomethane has the same chemical properties as natural gas, it can be injected directly into the existing gas network and used for heating, electricity and transport fuel.
Ireland has set a target of producing 5.7 TWh of indigenous biomethane annually by 2030. This is a massive leap – current output is roughly 70 GWh per year from just two operational facilities. Despite having one of the largest potentials for biomethane production in Europe (thanks to its large agricultural sector), Ireland has lagged far behind countries like Germany, Denmark and the Netherlands.
🔹 The Renewable Heat Obligation
The key policy driver is the Renewable Heat Obligation (RHO) scheme, due to be implemented in mid-2026. This will require major fossil fuel suppliers (those supplying more than 400 GWh of fuel for heating) to ensure a proportion of their supplied energy is renewable.
The obligation starts at 1.5% in the first half-year of 2026, rising to 3% in 2027 and potentially 10% by 2030. This creates a guaranteed market for biomethane producers and is expected to stimulate rapid growth in the anaerobic digestion sector.
🔹 What It Means for Rural Ireland
Biomethane production is expected to take place largely in rural areas, creating significant economic opportunities for farmers and rural communities. Farmers can supply feedstock to anaerobic digestion plants, generating new income streams. The production process also creates biofertiliser as a by-product – a cheaper and more sustainable alternative to chemical fertilisers.
The government has committed between €100 million and €200 million in capital funding for biomethane development from 2026 to 2030 through the Infrastructure Climate and Nature Fund, in addition to a €40 million Biomethane Capital Grant Scheme.
🔌 The Celtic Interconnector – Connecting Ireland to Europe
The Celtic Interconnector is one of the most significant energy infrastructure projects in Ireland’s history. This €1.6 billion high-voltage submarine power cable will create Ireland’s first direct electricity link to continental Europe, connecting the grid in east Cork (Knockraha substation) to the north-west coast of Brittany in France.
The cable spans 575 km, with 500 km running under the Celtic Sea. It will have a capacity of 700 MW – enough to power 450,000 homes. Subsea cable laying began in August 2025, and the project is currently expected to be commissioned in spring 2028 (delayed from the original 2027 target).
The Celtic Interconnector matters for several reasons:
🌿 Energy security – it ends Ireland’s isolation from the continental European electricity market. Currently, Ireland’s only interconnection is with the UK.
🌿 Renewable energy integration – it allows Ireland to export surplus wind and solar electricity when generation exceeds domestic demand, and import power when the wind is not blowing.
🌿 Lower electricity prices – interconnection allows electricity to flow from where it is abundant (and cheap) to where it is scarce, putting downward pressure on consumer prices.
🌿 Climate targets – by facilitating higher levels of renewable generation, the interconnector supports Ireland’s 80% renewable electricity target.
The project received over €530 million in EU funding from the Connecting Europe Facility – one of the largest such grants ever awarded – reflecting its strategic importance to both Ireland and the wider European energy system.
Ireland is also connected to the UK through three existing smaller interconnectors. The East-West Interconnector (500 MW) and the Moyle Interconnector (500 MW, shared with Northern Ireland) together supplied 9.5% of Ireland’s electricity needs in 2023.
The government is also planning a massive investment in domestic grid infrastructure. The Price Review 6 (PR6) framework, published by the Commission for Regulation of Utilities, provides for up to €18.9 billion in electricity network investment between 2026 and 2030 – a record.
💧 Hydropower in Ireland
Hydropower was Ireland’s first renewable electricity source. The Ardnacrusha power station on the River Shannon, built in 1929, was a landmark in the country’s electrification and remains operational today.
Ireland has approximately 237 MW of installed hydropower capacity, producing a small but consistent share of renewable electricity. The potential for new large-scale hydropower is limited due to environmental constraints and the relatively flat topography of much of the country, but existing hydro stations continue to provide reliable, dispatchable power and some potential exists for small-scale and pumped-storage hydro.
🏠 What Renewable Energy Means for Your Home
The national energy transition directly affects what Irish homeowners pay for energy, what grants are available and how homes are heated and powered. Here are the key ways it touches your household:
🔹 Rising Carbon Tax – Making Fossil Fuels More Expensive
Ireland’s carbon tax is currently €71 per tonne of CO₂ emitted (from Budget 2026), and is legislated to increase by €7.50 annually until it reaches €100 per tonne by 2030. The tax applies to all fossil fuels including oil, gas, coal and peat.
In practical terms, this adds approximately:
🌿 16.4 cent to a litre of petrol and 19 cent to a litre of diesel
🌿 €157 to a 900-litre fill of home heating oil
🌿 €154 per year to the average gas bill (at 11,000 kWh consumption)
🌿 €7.46 to a 40 kg bag of coal
These costs will continue rising every year until 2030. The carbon tax is the single biggest financial incentive for homeowners to switch away from fossil fuel heating – and it is deliberately designed that way. The revenue generated (€558 million in 2026) is ring-fenced for residential retrofit grants, social welfare supports and agricultural sustainability programmes.
🔹 SEAI Grants – Record Levels of Support
The 2026 grant package is the most generous Ireland has ever offered for home renewable energy and energy efficiency upgrades:
🌿 Heat pumps: up to €12,500 (from February 2026) – see our heat pump guide
🌿 Solar PV panels: up to €1,800 plus 0% VAT – see our solar panels guide
🌿 Insulation: up to €8,000 for external wall insulation (detached homes), plus increased attic and cavity wall grants
🌿 Windows and doors: up to €4,000 for windows and €1,600 for doors (new for 2026)
🌿 Home Energy Upgrade Loans: €5,000 to €75,000 at rates from 2.99%
Total potential grant funding for a single home can exceed €21,500 when heat pump, insulation, solar and window grants are combined. Through the One Stop Shop deep retrofit route, grants can cover up to 50% of total project costs.
For the full breakdown, see our complete SEAI grants guide and our retrofitting guide.
🔹 Microgeneration – Getting Paid for Your Surplus Electricity
If you install solar PV panels (or a small wind turbine), any surplus electricity you generate but do not use is exported to the grid. Under the microgeneration support scheme, your electricity supplier pays you for this exported power.
Export rates vary by supplier – Electric Ireland currently pays 19.5c per kWh and Energia pays 18.5c per kWh. There is also an income tax disregard of €400 per year for microgeneration income, extended to the end of 2028.
Over 170,000 Irish homes, farms and businesses are now generating their own solar electricity, and the combination of self-consumption savings plus export payments means most residential solar systems pay for themselves within 5-7 years.
🔹 Smart Meters and Time-of-Use Tariffs
Ireland’s smart meter rollout enables time-of-use electricity tariffs, which charge different rates depending on when you use electricity. For homes with heat pumps or electric vehicles, this can mean significantly cheaper electricity at night when demand is low and wind generation is typically high.
Several providers offer specific heat pump tariffs with reduced nighttime rates. By running your heat pump overnight and using solar panels during the day, you can dramatically reduce your annual electricity costs compared to oil or gas heating.
👥 Community Energy in Ireland
Community energy projects allow groups of homeowners, businesses and community organisations to participate collectively in the renewable energy transition. Ireland’s Sustainable Energy Community (SEC) network now includes hundreds of communities across the country.
Community energy takes several forms:
🌿 Group retrofit projects – multiple homes upgraded together through the SEAI Community Grant, achieving better value through economies of scale
🌿 Community-owned renewable generation – community solar or wind projects where local residents invest in and benefit from renewable electricity generation
🌿 Sustainable Energy Communities – SEAI-supported groups that develop energy master plans for their area and coordinate local energy projects
Community energy projects are the fastest-growing segment of the wind energy market, and RESS auctions include specific provisions for community-led projects. For homeowners, participating in a community scheme can mean access to the same grant rates as individual or One Stop Shop routes, but with the added benefit of shared project management and group purchasing power.
🔋 Energy Storage and Grid Flexibility
As Ireland generates more electricity from wind and solar – both of which are variable by nature – energy storage becomes increasingly important. Battery storage systems, both at utility scale and in homes, help balance supply and demand.
At the household level, battery storage systems paired with solar panels allow you to store surplus electricity generated during the day for use in the evening. This increases the amount of solar electricity you use directly (known as self-consumption) and reduces your reliance on grid imports during expensive peak hours.
At the national level, Ireland needs significant investment in large-scale battery storage, grid flexibility and demand-side management to operate a system where wind and solar provide 80% or more of electricity. EirGrid is planning for a system that runs almost entirely from wind, solar, storage and imports by 2035.
The data centre sector – which already accounts for 22% of Ireland’s electricity demand in 2025, projected to reach 31% by 2034 – is both a challenge and an opportunity. New rules from the Commission for Regulation of Utilities require that 80% of new large energy user demand must be supplied by additional renewable capacity, which is driving significant investment in new renewable generation.
🌍 Renewable Energy and Climate Change
Energy use accounts for more than half of Ireland’s greenhouse gas emissions. The transition to renewable energy is the single most important step Ireland can take to meet its climate commitments.
Every unit of electricity generated from wind or solar displaces a unit that would otherwise come from burning natural gas (which accounted for over 40% of electricity generation in 2024). Every home that switches from an oil boiler to a heat pump powered by increasingly green electricity reduces its direct emissions to zero on site.
Ireland’s electricity grid is getting greener every year. As the share of renewables grows toward 80%, the carbon intensity of electricity falls, making electric heating, electric vehicles and electrified industry progressively cleaner.
For more on Ireland’s climate targets and what they mean, see our guide to climate change in Ireland.
❓ Frequently Asked Questions About Renewable Energy in Ireland
🔹 What percentage of Ireland’s electricity comes from renewable sources?
Renewables accounted for approximately 40-41% of Ireland’s total electricity generation in 2024. Wind provided around a third of national demand, with solar, hydro and biomass making up the remainder. The target is 80% by 2030.
🔹 What are Ireland’s main renewable energy sources?
Wind energy (both onshore and offshore) is the dominant renewable source, followed by solar PV, which is the fastest-growing. Hydro, biomass and biogas also contribute. For heating, heat pumps and biomethane are the main renewable alternatives to oil and gas.
🔹 Does solar energy work in Ireland?
Yes. Ireland added over 1 GW of solar capacity in 2025 alone, and more than 170,000 homes now have rooftop solar. During summer months, solar supplied more than one-fifth of national electricity demand. Solar panels work on daylight, not direct sunshine, so they generate electricity year-round in Irish conditions.
🔹 What grants are available for renewable energy at home?
SEAI offers grants of up to €12,500 for heat pumps, up to €1,800 for solar PV panels (plus 0% VAT), and various insulation grants. New window and door grants launched in March 2026. Total grant funding for a single home can exceed €21,500. See our SEAI grants guide for the full breakdown.
🔹 Can I sell electricity back to the grid?
Yes. If you have solar PV panels or a small wind turbine, your electricity supplier will pay you for surplus electricity exported to the grid. Rates vary by supplier – typically 18-20c per kWh. There is also a €400 annual income tax disregard for microgeneration income.
🔹 What is the Celtic Interconnector?
A €1.6 billion submarine power cable being built between Cork and Brittany, France. It will be Ireland’s first direct electricity link to continental Europe, with a capacity of 700 MW (enough to power 450,000 homes). It is currently expected to be commissioned in spring 2028.
🔹 Will Ireland meet its 80% renewable electricity target by 2030?
It is increasingly unlikely that Ireland will hit the full 80% target on time. Offshore wind – which is critical to the plan – faces significant permitting and infrastructure delays. However, onshore wind and solar deployment are accelerating, and the direction of travel is clear. The IEA has noted that Ireland has made strong progress but needs to accelerate implementation.
🔹 What is the carbon tax and how does it affect me?
Ireland’s carbon tax is €71 per tonne of CO₂ (from Budget 2026) and rises by €7.50 per year until it reaches €100 in 2030. It applies to all fossil fuels including home heating oil, gas, coal and peat. The tax adds approximately €157 to a 900-litre fill of heating oil and €154 per year to the average gas bill. The revenue funds SEAI retrofit grants and social welfare supports.
🔹 What is the Renewable Heat Obligation?
A new scheme launching in mid-2026 that requires major fossil fuel suppliers to ensure a proportion of the energy they supply for heating comes from renewable sources (primarily biomethane). Starting at 1.5% in 2026, rising to potentially 10% by 2030. It is designed to decarbonise Ireland’s heating sector and stimulate the biomethane industry.
🔹 How can I reduce my home’s reliance on fossil fuels?
The most effective steps are: insulate your home first (the “fabric first” approach), install a heat pump to replace your oil or gas boiler, add solar PV panels to generate your own electricity, and use a smart meter tariff to take advantage of cheap renewable electricity at night. SEAI grants can cover a significant portion of the cost. See our retrofitting guide for the best approach.
📚 Related Guides
🌿 Solar Panels
🌿 Are Solar Panels Worth It?
🌿 Solar Cost Calculator
🌿 How Many Panels Do I Need?
🌿 Best Solar Installers
🌿 Home Battery Storage
🌿 Solar Water Heating
🌿 Wind Energy
👉 All guides and calculators
Climate Jargon Buster is an independent resource providing plain-English information on climate, energy and sustainability topics for an Irish audience. Figures in this article are correct as of March 2026 based on the latest available data from SEAI, EirGrid, Solar Ireland and government sources. For official energy statistics, visit seai.ie. This site is not affiliated with SEAI or any government body.