Dáil Éireann Debate, Thursday - 11 June 2026
176. Deputy Sean Fleming asked the Tánaiste and Minister for Finance the number of people who applied and qualified for a tax incentive of €400 on the income generated from selling electricity back to the electricity grid under the Clean Export Guarantee in 2024 and 2025; and if he will make a statement on the matter. [44713/26]
View answer177. Deputy Sean Fleming asked the Tánaiste and Minister for Finance to increase the tax incentive for persons who generate electricity in their own homes and sell it back to clean energy under the Clean Export Guarantee System, to the grid at €2,000 per annum given infrastructure is already in place and can lead to energy on the national grid from renewable sources; and if he will make a statement on the matter. [44734/26]
View answerI propose to take Questions Nos. 176 and 177 together.
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.
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 exempt amount was increased from €200 to €400 per year by section 28 of Finance (No.2) Act 2023. The profits which are exempted are those profits arising from the domestic generation of electricity which is supplied to the national grid. The tax exemption was due to expire on 31 December 2025. Finance Bill 2025 extended the exemption from Income Tax, USC and PRSI for householders for certain profits of up to €400 per annum from the microgeneration of electricity, for a further three years, to 31 December 2028.
There is no requirement to include the exempt profits in an income tax return (Form 11 or Form 12). Therefore, where an individual is not already required to file an income tax return, the fact that they have exempt profits from the microgeneration of electricity does not necessitate the filing of a tax return.
However, should an individual have profits exceeding €400 from the microgeneration of electricity in a year of assessment, the excess is taxable and must be declared on a tax return and will be subject to income tax, USC and PRSI in the usual manner.
I am informed by Revenue that, as there is no obligation to include the exempt profits in an income tax return, there is no data available from which to estimate the number of claimants.
The Deputy may wish to note that in advance of last year's Budget, a review of the tax exemption for the micro-generation of electricity was undertaken and included in Chapter 9 of the Tax Strategy Group 25/01 paper on Income Tax - www.assets.gov.ie/static/documents/TSG_25-01_Income_Tax.pdf.
In designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible, consistent with the overall policy intention behind the measure, and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources.
Decisions regarding taxation measures are usually made in the context of the annual Budget and Finance Bill process. Such decisions must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines.
