Explainer
Homes and businesses in Ireland that generate their own electricity are paid for what they export. Here is how the Clean Export Guarantee works, how export rates are set, what the NC6 form is, and what it all means for suppliers.
By Christopher Fagan, Managing Partner, PEF Consulting Partners
The government approved the Microgeneration Support Scheme in December 2021 to help homes, farms and businesses generate their own renewable electricity. It has three parts: SEAI grants for domestic solar panels, the Clean Export Guarantee for anyone exporting electricity, and the Clean Export Premium for small non domestic generators.
Since 2022, electricity suppliers have had to pay their micro and small scale generators for the renewable electricity they export to the grid, at a rate that reflects its market value. Each supplier sets its own rate, so microgeneration rates differ from one supplier to the next and change over time, which is why it pays to compare them. Payments are usually credited against the customer’s electricity bill rather than paid out separately.
To be paid accurately, exports need to be measured, which is where smart meters come in. ESB Networks aims to fit a smart meter within four months of receiving a valid NC6 form where the customer is eligible, and more than 140,000 smart meter customers already receive export payments.
The NC6 is the notification ESB Networks needs before a micro generator is connected to the network. It covers systems up to 25 amps single phase, about 6 kW, or 16 amps three phase, about 11 kW. It is submitted before the system is installed, with a type test certificate showing the equipment meets the required standard, and installation can then go ahead unless ESB Networks says otherwise within the set timeframe. The work must be done by a registered electrical contractor. Connections within these limits carry no charge, and anything larger goes through ESB Networks’ separate mini generation process.
New non domestic installations above 6 kW and up to 50 kW can receive the Clean Export Premium instead: a fixed export tariff for 15 years, set at 13.5 cent per kWh when it was introduced, with the difference from the market price funded through the PSO levy.
Individuals generating at their home pay no income tax on the first €400 a year of profit from exported electricity, under the microgeneration exemption. Anything above that is taxable, so check Revenue’s current guidance for the latest position and dates.
Every microgenerator is a customer the supplier both sells to and buys from. That means import and export data that has to be matched every billing period, export rates that must be applied and shown correctly on the bill, credits that can run across several bills, and settlement treatment that has to be right. With smart tariffs, dynamic pricing and EU energy sharing rules arriving as well, export billing is one more reason suppliers are asking whether their platforms can keep up. See smart meters in Ireland and what suppliers must change before 2030.
The requirement on electricity suppliers in Ireland to pay micro and small scale generators for the renewable electricity they export, at a rate reflecting its market value. Each supplier sets its own rate.
Each supplier sets its own export rate, so rates vary between suppliers and change over time. Payments are usually credited against your electricity bill.
The notification ESB Networks needs before a micro generator of up to about 6 kW single phase, or 11 kW three phase, is installed. It must include a type test certificate, and a registered electrical contractor must do the installation.
Exports need to be measured to be paid accurately. ESB Networks aims to fit a smart meter within four months of a valid NC6 form where the customer is eligible.
Individuals generating at home are exempt from income tax on the first €400 a year of profit from exports. Income above that is taxable, so check Revenue for the current rules.
Related reading: smart meters in Ireland, what is an MPRN, Ireland’s 2030 energy targets.
Suppliers whose platforms struggle with export billing and smart data can talk to us about where the process breaks and how to fix it.