What Is Microgeneration?
Put simply, microgeneration refers to the small scale production of electricity to offset or meet the energy needs of an individual home or business.
Microgeneration aims to use renewable sources of energy to produce small amounts of electricity that can either be used by the home or business owner, stored in a battery for later use, or sold back into the national grid.
Traditional power plants, on the other hand, rely on fossil fuels such as oil or gas to produce electricity on a large scale.
What Are The Sources of Microgenerated Electricity In Ireland?
Solar Panels
The most common source of microgenerated electricity in Ireland, solar PV panels are the distinctive black panels you often see placed on rooftops. They generate electricity during daylight hours, with 75% being produced from December to December, as these are the months of the year with the most hours of sunshine.
Micro-wind Turbines
Micro-wind turbines work in exactly the same way as their large wind turbines by harnessing the flow of wind to generate electricity. Due to their small size, they are suitable for home and business owners.
Micro-water Generators
Micro-water generators use the flow of water to generate electricity, often placed in rivers, where the flow of the river is used to drive a turbine or pump which converts the flow into energy. These are more suitable for large property owners such as farmers who have access to rivers on their land.
Micro-renewable Combined Heat and Power (CHP)
Micro-combined heat and power captures the heat generated by electricity production to create on-site heat and power at the same time. They are often used by industries with large heat demands, such as hotels and swimming pools.
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What Do I Need for The Micro-Generation Support Scheme?
To apply, your home must:
- Have solar panels installed
- Have been built before 2021
- Have a Meter Point Registration Number (MPRN)
- Be registered with an electricity supplier
- Be generating less than 6kW of electricity
Solar Panels
To avail of the Micro-Generation Support Scheme, you first need to have solar panels installed. There is no minimum required, but anything less than four probably won't produce any excess energy.
Since December 2024, the scheme is only available to those with solar panels and not those using micro-wind or micro-hydro power generators.
Steps outlined:
- Inform ESB of installation using NC6 form
- Inquire if energy supplier offers a tariff for microgenerated electricity
- Once installed, panels lower overall electricity bills
- Sell excess back to national grid through energy provider
Built Before 2021
To qualify for the Micro-Generation Support Scheme, your property must have been constructed prior to 2021. This criterion ensures that the scheme targets existing dwellings and businesses, encouraging retrofitting with renewable energy solutions rather than new builds which often have different energy efficiency standards.
Smart Meter
To avail of the Micro-Generation Support Scheme, it is also necessary to have a smart meter installed.
The smart meter is necessary as it allows your supplier to accurately measure the excess output of energy from your home, ensuring that you receive an accurate payment for the energy you are exporting.
Meter Point Registration Number (MPRN)
A Meter Point Registration Number (MPRN) is essential for participation in the scheme. This unique 11-digit number identifies your electricity connection point on the national grid and is crucial for your energy supplier to accurately register your meter and manage your electricity account.
Be Registered with an Electricity Supplier
Before you can begin selling excess electricity back to the grid, you must be registered with a licensed electricity supplier in Ireland.
This supplier will be the entity through which your exported electricity is measured and paid for.
Be Generating Less Than 6kW of Electricity
The Micro-Generation Support Scheme is specifically designed for small-scale electricity generation. To be eligible, your system's total electrical output capacity must be less than 6kW (kilowatts).
This limit ensures that the scheme primarily supports residential and small business installations, aligning with the definition of 'microgeneration' and differentiating it from larger commercial or industrial renewable energy projects.
How Much Can I Earn Through Microgeneration?
A typical residential installation can aim to export between 10% to 40% of microgenerated energy, meaning a return of between €100 to €300 in energy credits.
Having said that, it's difficult to give an estimate on the amount you could earn per year through microgeneration and these figures are a broad estimate.
Variable factors including the size of your solar installation, days of sunlight per year and your own level of energy consumption will ultimately dictate how much you could earn.
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What Rates Do Different Companies Offer for Microgeneration?
The microgeneration rates offered by energy companies can vary, but most will offer a competitive price.
You will often see these prices described as a 'feed-in tariff' which simply refers to the rate the energy provider will pay for each excess kWh you produce.
As of March 2026, Pinergy offer the highest price for excess microgenerated electricity at 25 cents per kWh.
Yuno Energy, the newest provider to enter the Irish market, offer the lowest rate at 15.89 cents per kWh.
Complete Microgeneration Rates Table
| Supplier | Microgeneration Rate | Payment |
|---|---|---|
| Pinergy | 25.0c per kWh | Monthly credit |
| Energia | 20.0c per kWh | Credit as per billing cycle |
| Flogas | 20.0c per kWh | Bi-monthly credit |
| Electric Ireland | 19.5c per kWh | Credit as per billing cycle |
| SSE Airtricity | 19.5c per kWh | Credit 4 times per year |
| Bord Gais | 18.5c per kWh | Credit 4 times per year |
| Yuno Energy | 15.89c per kWh | Bi-annual credit |
Note: Rates include VAT. Last updated: March 2026.
You Can Only Sell To Your Energy Provider
It is also worth noting that you can't sell your excess energy to the 'highest bidder'. You can only sell to your own energy provider, so if they happen to offer a lower rate than some other providers, you would need to switch provider completely to avail of their higher rate.
If you are considering switching to a new supplier for their microgeneration rate, make sure to compare their unit rates for electricity.
Despite having a competitive microgeneration rate, they may have a higher standard unit rate or indeed standing charges compared to other microgeneration suppliers.
Is Microgeneration Worth Investing In?
Before investing, consider these pre-investment questions:
- Do you have suitable roof space or land? For solar panels, a south-facing, unshaded roof is ideal.
- What are your current energy consumption habits? High consumption means more potential savings from self-generated power.
- What is your budget for the initial investment? Factor in the cost of installation and any available grants.
- Are you comfortable with a long-term investment? The payback period for microgeneration systems can range from several years.
- Are you prepared for potential changes in feed-in tariffs or government policies?
The cost benefit ratio whether it's worth investing in microgeneration is difficult to predict, given the number of variable factors that will decide how much it benefits you in the long term.
While it's important to take note of the potential variables, there are a number of advantages to investing in microgeneration in Ireland.
Advantages
- It can be a steady source of income that helps you cut down on your electricity bills.
- You can save money by selling excess energy back to your energy provider.
- It is a more environmentally friendly means of generating energy and reduces your carbon footprint.
- It offers you an insight into your energy consumption needs through your smart meter.
Disadvantages
- The initial cost of installing a microgenerator such as solar panels can be very expensive.
- You must purchase and sell your energy to the same supplier, who may not offer a competitive rate.
- Unpredictable weather and dark winters may impact your ability to generate excess electricity.
- The rate of purchase for exported energy may change depending on government policy or supplier rate changes.
Why Is Microgeneration Important For Ireland?
As a signatory to the Paris Agreement, Ireland has committed to developing and implementing national climate action plans that outline how it will contribute to global efforts to reduce greenhouse gas emissions and address climate change.
Ireland's Climate Action Plan 2023 sets out action to reduce overall national emissions by 51% by 2030 and reach net-zero emissions no later than 2050.
Large scale investment in renewable energy along with the promotion of microgeneration are key to the government's plan to reduce overall carbon emissions, and the Micro-Generation Support Scheme (MSS) aims to incentivise home and business owners to invest in microgenerated energy.