troducing a new government energy auction system.
Of particular importance to those considering new solar projects is the proximity of their proposed site to the local substation. Current Irish requirements necessitate a direct connection to the local grid network, unlike many examples across the United Kingdom and Germany where access is provided to a direct connection via an overhead line.
Many factors can explain the rapid deployment of solar PV across the world in recent years. These include the convenience of the panels, combined with an international push to embrace renewable energy sources. However, two major factors which explain the rise of solar include a drastic drop in module price from $70/watt in 1970 to $0.198/watt as of October 2019, as well as generous government subsidies. Advocates of this increasingly prominent renewable energy source argue that it will have a minimal impact upon the environment, whilst delivering significant benefits to the consumer and the Irish economy as a whole.
It is clear, therefore, that with the correct support, promotion and subsidisation, solar holds the potential to play a greater role in Ireland’s renewable energy mix. This concept is supported by those who argue that solar, as an energy source, has been traditionally overlooked, with greater focus placed on other sources such as wind.
However, doubts remain about the reliability of solar in Ireland given a lack of sunshine in winter months and a lack of storage capabilities. While some mistakenly assume the problem is an overall lack of sun, Ireland enjoys 70 per cent of the sunshine that Madrid does on average, but 75 per cent of that sunshine occurs between May and September. Without an effective storage method, this makes optimising solar potential in Ireland all the more challenging.
It is estimated that an annual subsidy of €30 million will be required to make the solar sector competitive in Ireland. This estimate supports the fact that Ireland is as geographically well-placed as Germany regarding the employment of solar energy. However, it is also acknowledged that solar energy brings with it certain complications which frequently apply to other renewable energy sources. Developing efficient storage systems has been highlighted as a major challenge that must be met to move this emerging technology forward. Indeed, the possibility of developing such a system has been greatly enhanced by the global decline in energy storage price.
Incentives for sustainability
Whilst the Irish Government acknowledges solar sector analysis which demonstrates that solar PV technology costs fell by 80 per cent from 2008 to 2013, former Minister for Communications, Climate Action and Environment, Denis Naughten TD, argued for more time to be taken to confirm whether this decrease is indicative of a more complex underlying trend. Rather than incentivise the market by introducing a tariff that encourages exports into the national grid, the Irish Government has instead sought to imbed self-consumption as a central concept of its grant scheme.
December 2017 saw the DCCAE announce Cabinet approval for the introduction of a Support Scheme for Renewable Heat. The Renewable Heat Incentive (RHI) saw an allocation of €7 million from Budget 2018 to fund the initial stages of the scheme. The first applications opened in the summer of 2018, despite calls from the Irish Farmers’ Association to fast track its introduction so to allow for its implementation in the first quarter of 2018. RHI is presently exchequer-funded, and solar-thermal technology is eligible for support under the scheme. Budget 2019 has proposed further measures to support renewable projects, including a €500 million Climate Action Fund and a €500 million Disruptive Technologies Fund.
Solar PV takes its place as one of the most versatile technologies to have emerged in recent times. Indeed, its versatility has been recognised as a key driver for more widespread application of the technology in the future and the Government has recognised this with the Climate Action Plan identifying 