The Micro-Renewable Energy Federation (MREF) has welcomed key measures in Budget 2026 aimed at supporting Ireland’s transition to renewable energy. The budget extends the €400 income disregard for households selling micro-generated renewable power back to the grid, now in place until 2028. This move encourages more homeowners and farms to invest in solar PV and battery systems.
Ciarán Kells, MREF chairperson, said: “We very much welcome the extension of the €400 income tax disregard. It was a key recommendation in our Budget submission, and it shows the government recognises the need to incentivise micro-generation at home and on farms.” Minister for Finance Paschal Donohoe also highlighted the growing importance of solar energy in Ireland, noting that 140,000 homes now have solar PV systems installed. MREF welcomed this recognition of the sector’s growing role in the green energy landscape.
Budget 2026 also extends Accelerated Capital Allowances (ACA) for energy efficiency equipment until 31 December 2030, providing further support for businesses and homeowners investing in sustainable energy solutions.Despite the positive steps, Mr Kells cautioned against proposed cuts to grant supports for solar and battery installations in January 2026, arguing they could undermine confidence in the sector: “The momentum, jobs, and businesses created in microgeneration must be supported. Cuts to grants risk reversing the progress made, even as solar power becomes mainstream and widely supported across communities.”MREF has also called for the removal of the January 1, 2020, cut-off for grant eligibility, ensuring solar PV incentives remain inclusive for all homeowners and businesses contributing to Ireland’s climate goals.
With these measures, Budget 2026 reinforces Ireland’s commitment to renewable energy while supporting households and businesses that are helping power the country’s sustainable future.
