910. Deputy Ann Graves asked the Tánaiste and Minister for Finance when a homeowner installs solar panels on their property if they are liable to pay tax on the excess that is sold back to the grid; and if the rate of this sale to the grid is to be cut. [24496/26]

Micro-generation of electricity is the small-scale production of electricity by consumers who generate electricity at their own homes for their own consumption and sell the excess electricity produced to the grid. The relief encourages more taxpayers to generate small-scale production of electricity at their own homes for their own consumption from renewable technologies, in accordance with Government policy, and with a consequent reduction in the use of carbon-based fuels and carbon emissions. The Programme for Government commits to achieving 80 per cent renewable energy by 2030.

Section 216D of the Taxes Consolidation Act 1997 provides that profits of up to €400 per year arising to an individual from the generation of electricity from renewable, sustainable or alternative sources of energy at the individual’s sole or main residence for the individual’s own consumption (referred to as the micro-generation of electricity) is exempt from Income Tax, USC and PRSI. The profits which are exempted are those profits arising from the domestic generation of electricity which is supplied to the national grid. The tax relief was due to expire on 31 December 2025. Budget 2026 provided an extension to this scheme to 31 December 2028.

Where the calculated profit from micro-generated electricity for a tax year is in excess of the exempt amount of €400, that excess must be declared on an income tax return and will be subject to income tax, USC and PRSI in the usual manner.

The Deputy also refers to the rate for sales to the grid, I am advised by the Department of Climate, Energy and the Environment that the electricity and gas retail markets in Ireland operate within a European Union regulatory regime wherein electricity and gas markets are commercial and liberalised. Operating within this overall EU framework, responsibility for the regulation of the electricity and gas markets, including the matters raised by the Deputy, is solely a matter for the Commission for Regulation of Utilities.