Budget 2026 – €400 Tax Threshold for Selling Excess Solar Extended by 3 Years
Homeowners with solar panels in Ireland will be able to continue to benefit from tax free revenue from their solar electricity until the end of 2028.
Budget 2026 today confirmed that the €400 threshold for revenue from microgeneration of electricity will be extended for another three years.
Microgeneration is where homes generate electricity from sources such as solar panels or a small wind turbine. This is primarily for their own usage, but some power can be fed back into the grid.
For homes with solar panels installed, by default, any electricity which is not used in your home at the time is exported back to the grid.
Homeowners get paid for this with a feed-in tariff rate set by their electricity supplier, offering anywhere from 15c to 25c per kWh of electricity.
Crucially, homeowners with solar panels are currently able to earn up to €400 from selling surplus electricity without having to pay income tax.
There has been some concern in recent weeks that the measure would be allowed to expire at the end of the year.
However, Minister for Finance Paschal Donohoe confirmed this afternoon that the measure is being extended to December 31, 2028.
It was also stated today that €558 million from carbon tax revenue will be provided to the SEAI for residential and community energy upgrade schemes next year.
This represents an €89 million increase on funding from the previous year, for measures which will include Solar PV.
However, no further details were provided on what this will mean for the Solar PV Scheme, and if planned grant reductions in 2026 will proceed as planned.
24,000 homes have had solar panels installed in 2025 so far with the aid of SEAI grants, which offer up to €1,800 depending on the size of the solar PV system.
This grant is currently due to be reduced by €300 each year until 2029, when it is currently intended for the grant scheme to end.
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Budget 2026 – €400 Tax Threshold for Selling Excess Solar Extended by 3 Years
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Last edited
07/10/2025
Homeowners with solar panels in Ireland will be able to continue to benefit from tax free revenue from their solar electricity until the end of 2028.
Budget 2026 today confirmed that the €400 threshold for revenue from microgeneration of electricity will be extended for another three years.
Microgeneration is where homes generate electricity from sources such as solar panels or a small wind turbine. This is primarily for their own usage, but some power can be fed back into the grid.
For homes with solar panels installed, by default, any electricity which is not used in your home at the time is exported back to the grid.
Homeowners get paid for this with a feed-in tariff rate set by their electricity supplier, offering anywhere from 15c to 25c per kWh of electricity.
Crucially, homeowners with solar panels are currently able to earn up to €400 from selling surplus electricity without having to pay income tax.
There has been some concern in recent weeks that the measure would be allowed to expire at the end of the year.
However, Minister for Finance Paschal Donohoe confirmed this afternoon that the measure is being extended to December 31, 2028.
It was also stated today that €558 million from carbon tax revenue will be provided to the SEAI for residential and community energy upgrade schemes next year.
This represents an €89 million increase on funding from the previous year, for measures which will include Solar PV.
However, no further details were provided on what this will mean for the Solar PV Scheme, and if planned grant reductions in 2026 will proceed as planned.
24,000 homes have had solar panels installed in 2025 so far with the aid of SEAI grants, which offer up to €1,800 depending on the size of the solar PV system.
This grant is currently due to be reduced by €300 each year until 2029, when it is currently intended for the grant scheme to end.
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