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.

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.

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!

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.

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.

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.

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.

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.

Speak with a member of our team and determine the type of solar that best suits your situation

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.

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.

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.