Switching to solar energy is a smart move for businesses in Ireland looking to reduce energy costs and support sustainability goals. However, funding a commercial solar project can seem challenging with the variety of grants and financial options available.
However, Ireland offers several schemes to make solar energy accessible and affordable for businesses of all sizes. From government grants like the Non-Domestic Microgen Grant Scheme to tax incentives, there are ways to manage the costs effectively.
In this blog, we’ll explore the best funding options, eligibility criteria, and steps to help you understand how to fund a commercial solar project in Ireland. Whether you’re a small business or a large organisation, there’s a solution for you.How to Fund a Commercial Solar Project in Ireland?
How to Fund a Commercial Solar Project in Ireland?
There are four ways to fund a commercial solar project in Ireland. Let’s explore them.
SEAI Grants for Commercial Solar Panels
Ireland provides a range of funding opportunities for businesses investing in solar energy. The SEAI offers two significant grant schemes to ease the financial burden of solar installations. Below, we discuss these grants and how they can support your solar project.
Non-Domestic Microgen Grant Scheme
This grant supports the design, purchase, and installation of solar PV systems for commercial use, with funding of up to €162,600. It is open to businesses, farms, schools, community centres, and non-profits. The grant value depends on the system size, making it accessible to various organisations. Applying involves selecting an approved installer and submitting essential details through the SEAI portal.
EXEED Grant Scheme
Designed for larger energy efficiency projects, this scheme offers up to €3 million for organisations implementing significant upgrades. It includes a two-phase process: planning and implementation. Solar panels are eligible if energy improvements to the premises are prioritised. Businesses can reduce operating costs and improve their energy performance with this grant.
Community Grant Scheme
This scheme supports collaborative projects that upgrade energy efficiency in multiple community-use buildings. Eligible facilities include schools, community centres, and sports facilities. A project coordinator manages applications and installations, simplifying the process for participants. This grant aims to reduce energy costs while improving comfort and sustainability in local areas.
What Are the Other Financial Supports for Commercial Solar Projects?
Beyond SEAI grants, businesses and farms can explore additional funding options to make commercial solar projects more affordable. These supports include schemes designed for specific sectors and tax incentives customised for renewable energy investments.
Solar Capital Investment Scheme for Farms
This scheme offers up to €90,000 under the TAMS 3 programme for Irish farms. Covering 60% of eligible costs, it supports renewable energy installations primarily for agricultural purposes. To qualify, farmers need to meet specific criteria such as land size and usage requirements, and applications must include documents like farm layouts and solar surveys.
Accelerated Capital Allowance (ACA)
The ACA provides tax incentives by allowing businesses, farms, and sole traders to deduct the cost of solar panels and energy-efficient equipment from taxable profits in the year of purchase. Eligible items must be listed on the Triple E register, and expenditure must exceed €1,000.
3 Common Challenges in Funding a Commercial Solar Project
Funding a commercial solar project in Ireland comes with a few challenges. From managing upfront costs to choosing the right funding option, understanding these challenges is the first step to overcoming them.
High Initial Capital Requirements
The upfront cost of installing a solar system can feel challenging for many businesses. This often leads to hesitation, even when the long-term benefits are clear. Finding suitable funding or financing options can help spread these costs, making the project more manageable.
Understanding Financial Returns and Payback Periods
Businesses often struggle with calculating the true financial returns of their solar projects. Factors like energy savings, tax benefits, and maintenance costs need to be taken into account. Having a clear understanding of the expected payback period is key to making informed decisions.
Navigating Available Funding Options and Incentives
Ireland offers various grants and schemes, but understanding the details can be overwhelming. Knowing which incentives apply and how to apply for them can be a time-consuming process. Seeking expert advise or using online resources can simplify this and ensure the right choices are made.
How to Fund a Commercial Solar Project in Ireland?
Applying for grants like the Non-Domestic Microgen Grant Scheme (NDMG) is a key step in funding a commercial solar project in Ireland. Applications must be submitted online through the SEAI website, and the installation work must be carried out by an SEAI-registered installer. While the process can seem complicated, SPV Energy is here to help.
We provide full support, from navigating grant applications to choosing approved installers and ensuring all requirements are met. Let SPV Energy guide you through the funding process and make your solar project a reality. Contact us today to get started!
Conclusion
Funding a commercial solar project in Ireland is more accessible than ever with the SEAI grants, tax incentives, and schemes like the Non-Domestic Microgen Grant and the Solar Capital Investment Scheme. By taking advantage of these supports, businesses and farms can reduce energy costs while contributing to sustainability goals. Whether you’re planning a large-scale installation or a smaller project, understanding the available options is key.
For expert guidance on funding and installation, trust SPV Energy to simplify the process and help you make the most of your investment. Contact SPV Energy today to explore your funding options and start saving!
FAQs
How long does it take to receive the solar panel grant?
Once all the required documents are submitted, the SEAI typically processes and pays the grant within 4 to 6 weeks.
Do I need planning permission for solar panels?
In most cases, rooftop solar panels do not require planning permission unless the property is near an airport, airfield, or helipad. Similarly, ground-mounted solar panels are exempt as long as their total area is 75m² or less.
Are solar panel grants available for new properties?
Yes, SEAI offers grants for installing solar panels on both newly constructed and existing homes, businesses, and other properties.
What grants are available for commercial solar projects in Ireland?
The Sustainable Energy Authority of Ireland (SEAI) offers grants like the Non-Domestic Microgen Grant Scheme, providing up to €162,600 for solar PV installations. Additionally, the EXEED Grant Scheme offers support up to €3 million for large-scale energy efficiency projects.
Can businesses apply for multiple grants simultaneously?
Yes, businesses can apply for multiple grants; however, each grant has specific eligibility criteria and conditions. It’s essential to review the terms of each scheme to ensure compliance and understand how combining grants may affect funding.
Are there tax incentives for investing in commercial solar projects?
Yes, Ireland offers tax incentives such as the Accelerated Capital Allowance (ACA), allowing businesses to deduct the full cost of energy-efficient equipment, including solar panels, from their taxable profits in the year of purchase.