Blow for homeowners with solar panels as Electric Ireland confirms rate cut

Thousands of homeowners across the country are set to lose out financially after Electric Ireland confirmed a cut in the microgeneration rate it pays to those with solar panels.

In a letter to customers, the company stated the rate it pays to those who export excess electricity to the grid is being reduced with immediate effect by more than 7%.

The cut was announced on the same day that Electric Ireland implemented a previously announced reduction in the price it charges customers for electricity they use from the grid.

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Depending on the number of solar panels and the location of the property, homeowners can receive electricity credits worth several hundred euro a year for any electricity they export to the grid under the microgeneration scheme.  

The scheme is designed for those who export small quantities of excess electricity and payments are applied in the form of a credit on customers' bills, reflecting the amount of electricity they have exported during the relevant period.

Currently in Ireland, the first €400 in profits in any year from the microgeneration of electricity are exempt from income tax. The cut, announced by Electric Ireland, means it will now pay customers 19.5c per kWh compared to the 21c it paid up to October 31.

However, the impact of the cut won't be fully felt by homeowners until early next year when the days start getting longer again - resulting in longer periods of daylight and sun.