There’s no doubt about it – solar panels in Ireland have well and truly taken off, and one of the main benefits is that you can sell solar electricity back to the grid!
This is an added benefit on top of the main reasons that people install solar panels – to reduce their bills and carbon footprint.
Selling surplus energy back to the grid increases savings, and also has a positive impact on the environment.
In this guide, we’ll explain everything you need to know about how to sell solar electricity.
![Selling Solar Energy Back to the Grid](https://energyefficiency.ie/wp-content/uploads/2023/07/Selling-Solar-Energy-Back-to-the-Grid.png)
Table of Content
The First Steps to Selling Solar Electricity to the Grid
Step 1 is to install an array of solar panels on the roof of your property. If you want to sell excess electricity back to the grid, your solar PV panels must be able to produce excess renewable electricity.
Having a large enough solar panel system also future-proofs your home for further energy upgrades such as heat pumps and electric vehicles, while also increasing the value of your home.
The second thing you have to do is to get a smart meter so that you can receive microgeneration payments.
Microgeneration is a general term used to refer to electricity generated by renewable technologies such as solar PV, micro wind turbines, micro-hydro and micro-renewable combined heat and power.
How to Sell Solar Power Back to the Grid
Once you have a smart meter and a solar PV system, you can start thinking about exporting surplus electricity.
Your energy supplier will pay you for electricity that you supply back to the grid by means of the Clean Export Guarantee.
This payment has been around since 2022 under microgeneration measures introduced by the Irish government to encourage people to install solar panels.
Other incentives in 2024 include the SEAI domestic solar grant of up to €2,100 and VAT was removed last year for residential solar installations.
![Selling_solar_energy_back_grid sell surplus solar energy back to the electricity grid](https://energyefficiency.ie/wp-content/uploads/2023/07/Selling_solar_energy_back_grid.jpg)
Latest Rates for Selling Solar Energy Back to the Grid
The amount of money you can make selling surplus energy depends on two main factors: how much excess electricity your solar system produces, and the rates offered by your electricity supplier. Here are the latest rates offered by electricity suppliers in Ireland for solar.
Note: These rates are accurate as of 28th August 2024.
![Save_money_with_solar_energy how much you can save with solar energy](https://energyefficiency.ie/wp-content/uploads/2023/07/Save_money_with_solar_energy.jpg)
How much surplus energy will I have to sell?
When choosing the size of your solar system, you should know your annual electricity consumption and understand how much electricity different sized solar PV systems can generate.
The primary factor which determines the amount of surplus electricity you have is the size of your PV system. Let’s look at two different sized systems, and calculate how much you could potentially be able to sell back to the grid.
The average electricity usage in Ireland is 4,200 kWh.
A small solar system of 3.5 kWp (8 panels) could generate 10 to 15 kWh per day on a clear summer’s day.
But of course, Ireland is not always sunny and there are much fewer daylight hours in winter, meaning less sunlight.
So we estimate that a 3.5 kWp solar system can generate around 3,000 kWh of electricity annually.
Homeowners with adequate roof space often opt for a larger array of solar panels. A larger PV system of 12 PV panels (5.7kWp), could generate over 4,800 kWh per year.
Say your household consumes 4,200 kWh of electricity per year (the average in Ireland), that would mean that you’d have 600 kWh to sell back to the grid, i.e. extra savings of €150 with Energia or Pinergy!
![Sunshine_in_Ireland](https://energyefficiency.ie/wp-content/uploads/2023/07/Sunshine_in_Ireland.jpg)
7 Years
A typical solar installation is fully paid back within 7 years. All solar panels we recommend are under warranty for 25 years, so you will enjoy at least 17 years of free energy generation.
0% VAT
As of 10 May 2023, the government has removed all VAT on solar installation and solar panel supply. This means solar has never been more affordable!
Government Grants
There is a range of government grants available for all new solar installations. Our team will guide you through the application process.
How do I get a smart meter?
ESB Networks are in the process of installing 2.4 million smart meters – which is the modern electricity meter.
To date, around 1.8 million smart meters have been installed across Ireland.
Over 100,000 households with solar panels are benefiting from having a smart meter as they can sell surplus energy back to the grid.
If you still don’t have one, your solar panel installer will inform your electricity supplier that you have installed a solar PV system. ESB Networks will then come out to install your smart meter.
Although they are not compulsory, there are major benefits that they offer that the old electricity meters don’t.
![Smart_Meter smart meter](https://energyefficiency.ie/wp-content/uploads/2023/07/Smart_Meter.jpg)
The Benefits of Smart Meters
Selling Surplus Energy
Surplus electricity generated by your solar energy system can be sold back to the grid – but only if you have a smart meter. This saves you even more money and ensures that no green electricity goes to waste.
Track Electricity Usage
Detailed data will be available from electricity suppliers about your energy consumption. This allows you to make informed decisions about your energy usage, and make any changes that are necessary.
Accurate Bills
Your electricity bills will no longer be based on previous readings taken from your old electricity meter, meaning you will get accurate bills from your energy provider based on your electricity consumption .
![benefits-of-having-a-smart-meteR smart meter](https://energyefficiency.ie/wp-content/uploads/2023/07/benefits-of-having-a-smart-meteR.jpg)
Do I pay tax on income from solar panels?
Since the start of 2022, a tax exemption has applied to income up to €200 from selling solar energy back to their electricity grid.
The Irish government believes that this likely covers 95 per cent of homeowners who sell excess solar energy. Therefore, in all likelihood, you will not have to pay tax on the electricity you sell back to the grid.
This move was followed by further reductions in tax on solar energy. In May 2023, VAT on the supply and installation of solar panels was reduced from 23% to 0%.
The removal of VAT reduces the payback period for the average solar installation in Ireland (€8,000) from 7 to 6.2 years.
Selling Excess Solar Electricity is Quick and Easy
Once you have your smart meter installed, the whole process of selling excess electricity back to the grid is quick and easy.
But to consistently get the best prices, you should change your electricity supplier regularly, which is also true for those with solar.
If you are selling excess solar electricity, you should take into consideration the price of the electricity, as well as rates for exported electricity.
![Selling excess solar electricity smart meters allow people with a solar PV system to make money by selling energy back to the grid](https://energyefficiency.ie/wp-content/uploads/2023/07/Selling-excess-solar-electricity.jpg)
The Payback Period for Solar Panels
The Department of the Environment, Climate and Communications estimates that after SEAI grants, the average payback period for solar in Ireland is just over 6 years.
The solar payback period is basically how long it will take to fully pay off the initial installation costs for your solar power system. And of course, selling excess electricity will help to reduce this period. The government’s estimate is based on an €8,000 solar installation (after grants).
The payback period could be higher or lower depending on your solar output, which can be influenced by a number of factors such as the quality of the system, and exposure to direct sunlight.
Solar Panel Tips
How Solar Energy Works
We have focused mainly on how you can save money by selling excess electricity back to the grid, but that solar is a renewable energy source must not be overlooked.
Renewable solar energy helps offset your carbon footprint by utilising clean, renewable energy from the sun’s rays.
PV panels contain photovoltaic cells which have semiconductor materials such as silicon. An electrical current is generated when photons interact with this material, creating direct current (DC) electricity.
This is transformed into accelerating current (AC) electricity by a solar inverter, allowing you to use it in your home, or export it back to the electricity grid.
![photovoltaic-system-geed6c030e_1280](https://energyefficiency.ie/wp-content/uploads/2023/05/photovoltaic-system-geed6c030e_1280.jpg)
Learn How to Sell Solar Energy Back to The Grid Today
If you’re considering getting solar panels installed on your home or business, it’s important to talk to a reliable and trusted installer to avoid any problems and to explore your options.
Take our questionnaire today, and we’ll set you on the right track so that you can choose the ideal solar power option for you.
![Get_quote_for_solar_panels_today consider getting solar panels installed on your home or business](https://energyefficiency.ie/wp-content/uploads/2023/07/Get_quote_for_solar_panels_today.jpg)