Dáil Éireann Debate, Thursday - 18 September 2025
203. Deputy Pa Daly asked the Minister for Finance if he plans to continue the exemption householders with solar panels to sell excess energy back to the grid whereby they can earn up €400 tax free beyond December; and if he will make a statement on the matter. [49402/25]
Amharc ar fhreagra204. Deputy Pa Daly asked the Minister for Finance the estimated revenue that would be raised by eliminating the tax free exemption for householders selling energy to the grid via their solar panels of earnings up to €400; and if he will make a statement on the matter. [49403/25]
Amharc ar fhreagraI propose to take Questions Nos. 203 and 204 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 profits which are exempted are those profits arising from the domestic generation of electricity which is supplied to the national grid. The tax exemption is currently due to expire on 31 December 2025.
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.
Given that that income qualifying under this relief (up to €400 per year) is not required to be declared by micro-generators to Revenue, there are no data available on the uptake or cost to-date of the measure. However:
• Budget 2022 introduced the disregard of up to €200 from the micro-generation of electricity from income tax, the projected cost of the measure was estimated at €1 million for the full year cost.
• Budget 2024 increased the amount of exempted income from €200 to €400 and was estimated to be an additional cost in the order of €4.5 million for the full year for the measure.
As the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances. It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.
