Under the new Small-Scale Renewable Electricity Support Scheme, SMEs can turn idle rooftops or land into a 15-year income by exporting renewable electricity, writes Justin Wallace
The recently launched Small-Scale Renewable Electricity Support Scheme (SRESS) presents a valuable opportunity for small- and medium-sized enterprises (SMEs) that may have under-utilised rooftop space or land available for long-term passive income.
SRESS is an initiative of the Department of the Environment, Climate and Communications, designed to support SMEs, farmers and communities that wish to generate renewable electricity for export to the national grid.
It offers support for solar photovoltaic (PV) and onshore wind renewable electricity installations that are not suitable for the larger utility-scale Renewable Electricity Support Scheme (RESS) or the Micro-generation Support Scheme (MSS).
Support is offered in the form of a guaranteed tariff for 15 years to export projects ranging in capacity from 50 kw to 6 MW. The scheme opened for applications in January 2025.
When a business joins the SRESS scheme, it receives payment through a Power Purchase Agreement (PPA) with a supplier, utilising a special payment system designed to provide certainty to SRESS projects, thereby insulating it from fluctuating market prices.
Regardless of the market reference price of electricity, businesses will receive the same amount for the power supplied.
When electricity prices are low, the payment received from a supplier is topped up.
Conversely, when prices are high, SMEs still receive the standard tariff rate, but their supplier separately pays a surplus into a Government fund, the Public Service Obligation (PSO) levy.
This scheme presents a valuable opportunity for SMEs that may have under-utilised rooftop space or land.
For instance, a 50 kilowatt peak (kWp) rooftop or ground-mounted installation requires only 125 to 200 solar panels, equivalent to 250 to 300 square metres of roof space, roughly the size of a double tennis court.
The SME tariff for solar projects under 1 megawatt (MWh) is €130/MWh (€0.13/kWh), which generates a passive yearly income for your business for 15 years.
Further, solar panels are low-maintenance and generally expected to last for 25 to 30 years, so your system should still be capable of generating renewable electricity even after the SRESS support period ends. This could involve entering into a new PPA, without Government support, but with capital costs paid off.
If you are interested in joining SRESS, start by assessing your premises to determine its suitability for a renewable energy project. Consider how close your premises is to a grid connection at an ESB substation. Generally, being located closer to a substation brings down the cost of your connection.
ESB Networks publishes capacity heatmaps, which indicate the spare transformer capacity available at substations at each voltage level.
For generators exceeding 200 kilowatt (kW), ESB Networks provides a minimum cost calculator tool to estimate the minimum costs associated with connecting to the grid. Visit the grid cost calculator tool and grid capacity map on the Department’s website for more information.
Consider engaging a renewable energy expert to assist with calculating the financial implications, risk assessment and negotiating agreements. They can assist with estimating the total upfront costs, including equipment, installation, grid connection and other fees, as well as ongoing operational and maintenance costs.
A renewable energy expert can also calculate the expected revenue of the project based on the tariff rate and projected energy generation, taking into account variables such as seasonal change and any potential downtime.
Generally, most renewable electricity projects are required to have full planning permission in place before applying to SRESS.
However, revised regulations, introduced in October 2022, expanded the eligibility of properties for exemptions to include the rooftops of certain premises, such as industrial buildings and businesses. While these exemptions are subject to certain conditions and limitations, your local planning authority will be able to confirm if your premises is eligible for such an exemption.
Further information and details on the solar planning exemptions are available on the Department of Housing, Local Government and Heritage’s website.
If pursuing an export project is not for you, there are also grants available for renewables self-consumers with projects from 50 kw up to 1 MW under SEAI’s Non-Domestic Microgen Grant. Renewable energy self-consumers are electricity customers who generate their own renewable energy for personal use. They may then sell or store any excess electricity produced, if electricity generation is not their primary business.
To apply for SRESS, applicants must complete the application form. Completed application forms and any additional queries relating to the scheme can be directed to sress@decc.gov.ie.
SRESS will ultimately contribute to lower long-term energy costs for both households and businesses, enabling them to play a key part in the renewable energy transition.
Please see the scheme’s T&Cs and its Non-Technical Summary for more information.
Justice Wallace is an Officer in the Department of the Environment, Climate and Communications
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