Ireland Small Scale Renewable Electricity Support Scheme Sress Guide

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Key Takeaways

• Small-Scale Generation is defined as renewable electricity generation technologies with an electricity output greater than 50kW, but smaller than typical utility-scale generators.
• SRESS provides two distinct routes: Option 1 (Self-Consumer Grant under NDMG up to 1 MW) or Option 2 (15-year guaranteed Export Tariff up to 6 MW).
• Both the export tariff and the self-consumer grant are mutually exclusive and not available to the same project.
• The export tariff operates without an auction for 15 years, offering guaranteed premiums over wholesale revenues.
• Solar export tariffs for systems >50kW to 1MW offer €150/MWh for Renewable Energy Communities (RECs) and €130/MWh for SMEs and farmers.
• The tariff is structured as a two-way mechanism, requiring projects to contribute excess revenues back to the PSO during high electricity prices.
• Utility planning standards indicate approximately 3.75-5 acres (1.5-2ha) is required to support 1MW of solar capacity.

Purpose and Scope of SRESS

To bridge the policy gap between domestic micro-generation and large-scale competitive RESS auctions, the government established the Small-Scale Renewable Electricity Support Scheme. Under national criteria, Small-Scale Generation is defined as renewable electricity generation technologies with an electricity output greater than 50kW, but smaller than typical utility-scale generators.

The minimum project size for SRESS export projects is greater than 50 kW, providing medium-scale commercial rooftops, farm arrays, and community co-operatives with access to guaranteed grid revenues.

The Two Support Options: Grants vs Export Tariffs

Applicants must evaluate their energy balance carefully before applying:

• Option 1 (Self-Consumption Grant): Option 1 - The SRESS self-consumer grant, under the Non-Domestic Microgen Grant, serves businesses, schools, and farms that generate power primarily for their own consumption, offering up to €162,600.
• Option 2 (Guaranteed Export Tariff): Option 2 - The SRESS export tariff is for projects which export all electricity produced to the grid to earn income.
• Strict Mutual Exclusivity: It is important to note that both the export tariff and the self-consumer grant are not available to the same project. Projects choosing the export route cannot divert power to behind-the-meter loads.

SRESS Tariff Rates: Communities vs SMEs and Farmers

The scheme bypasses competitive auctions, offering guaranteed long-term revenue security:

• The SRESS export tariff provides a 15-year tariff to successful export applicants, without an auction.
• A different tariff is provided depending on whether the project is a Small and Medium Sized Enterprise (SME) or a Renewable Energy Community (REC). Farmers are eligible to apply on the same basis as SMEs.

The published tariff rate schedule establishes:

Grid Requirements and Land Sizing

Advancing an SRESS development requires adherence to technical grid and land constraints:

• Consumer Protection Mechanism: The above-mentioned premium tariff for export led projects is a two-way tariff. If wholesale prices spike beyond the strike price, generators pay the excess back into the Public Service Obligation (PSO) fund.
• Grid Milestones: In SRESS, SME applicants are required to submit proof of Grid Connection Agreement at application stage. Conversely, Renewable Energy Communities need only provide proof of a Grid Connection Assessment when applying for SRESS.
• Spatial Planning: For ground-mounted commercial developments, approximately 3.75-5 acres (1.5-2ha) is required to support 1MW of solar capacity.