Ireland’s national budget for 2026 has earmarked nearly €1.1 billion to advance renewable energy initiatives, with a significant portion dedicated to solar PV and home energy upgrades.
The budget, published on October 7, allocates €558 million for residential and community energy upgrade schemes, including the popular Solar PV Scheme, as part of efforts to deliver Ireland’s National Retrofit Plan.
Ireland continues to face some of the highest energy costs in Europe, and according to Darragh O’Brien, Minister for Climate, Energy and the Environment, the investment aims to ensure that energy remains “secure, sustainable, and affordable for all.”
One of the key components of the plan, the Home Energy Upgrade Loan Scheme, will remain active, offering retrofit loans at interest rates starting from 3%. O’Brien noted that households could save between €750 and €1,120 per year by undertaking comprehensive energy retrofit measures.
The government has also extended until 2028 the €400 income tax exemption for profits from electricity microgeneration—a move intended to further encourage small-scale renewable production. According to O’Brien, around 150,000 households and businesses have already registered microgeneration capacity with ESB Networks, a figure that continues to rise.
Much of this growth is being driven by solar PV installations. Data from the Sustainable Energy Authority of Ireland (SEAI)—the agency implementing these home energy schemes—shows that solar PV has played a key role in advancing Ireland’s retrofit targets.
However, the sector has faced concerns about the gradual reduction of solar grant values. In early 2025, the maximum grant for residential solar systems dropped from €2,100 to €1,800, with the possibility of further annual reductions of up to €300 in line with declining panel costs.
In response, Solar Ireland has called on the government to maintain the current grant level of €1,800, arguing that such support is “vital to keeping solar accessible for families, including those most in need, while maintaining SEAI’s strong oversight and quality standards,” said CEO Ronan Power.
Overall, this year’s €558 million allocation represents an €89 million increase compared to the €469 million set aside in Budget 2025. The funding is expected to be further supplemented by the European Regional Development Fund, which will help expand programs such as the Warmer Homes Scheme in 2026.
