Sun rises on solar industry as it targets growth

The who’s who of the solar industry descended on the RDS last week to attend the Irish Solar Energy Association annual conference.

The growth of solar farms around the country has been unprecedented. From practically zero in 2021, there are now around 20 solar farms connected to the national grid.

Arguably, this is only the beginning, as there is a healthy amount of projects in the pipeline, high demand for renewable power and no sign of a wavering in policy support.

It’s no surprise the industry is confident of a bright decade ahead. However, like most renewable energy sectors, problems with Ireland’s outdated grid, its archaic planning system and the rise in anti-solar farm sentiment threaten to hinder the sector’s development.

Despite this, the mood was overwhelmingly positive at the conference, which was attended by the Irish Farmers Journal.

Growth

The solar genie has been let out of the bottle and there is no stopping it. This was a message coming from the conference, as there is now 1.4 gigawatts (GW) of rooftop solar, small industrial solar and solar farms connected to the grid, powering over 300,000 homes.

Rooftop solar PV has also seen unprecedented growth, with over 100,000 systems connected to the grid, reducing grid demand for electricity.

The 2030 Climate Action Plan target is for 8GW of solar PV connected to the grid, including rooftop and solar farms. There is a very good chance that this will be met.

Today, there are around 20 solar farms connected to the grid but there are around 385 solar farm projects in development across the country, which could potentially be delivered this decade.

If developed, it would add a further 9.5GW in solar energy to the grid, surpassing our 2030 target, potentially delivering €2.7bn investment into Ireland.

Economic value

Figures contained in a new KPMG report show that the Irish solar industry supports around 6,440 jobs . In terms of total economic output, the solar industry has so far contributed €1bn to €1.2bn, generating €4.6m to €5.4m in commercial rates for county councils and €1.3m to €1.6m for community benefit funds.

From now until 2030, these figures will amount to €6.2bn to €7.3bn, €164m to €193m, and €49m to €58m, respectively. Therefore, the solar industry is set to be a major contributor to the Irish economy and to county councils’ revenue across capital investments, rates and operations.

Solar has become a highly cost-competitive technology.

The cost of solar PV panels has seen a 90% reduction since 2000.

In the past 10 years alone, the cost of solar panels plummeted by over 70%.

As costs reduced, there has been a 2,000% increase in solar GW installations globally over the period from 2008 to 2023.

Solar farms need sun, relatively flat, well-drained land and good access to the grid. Therefore, it’s understandable that nearly 60% of the planned solar farms will be located in Leinster.

The session on agriculture and biodiversity at the conference notably had no farmers on the panel, but did have representation from the IFA’s Geraldine O’Sullivan.

The use of farmland for solar farms has become a hot topic in 2024, as more solar farms become visible in parts of the country. It was pointed out during the session that if the 2030 targets are met, only 0.2% of farmland would be needed.

When asked about the IFA’s position on solar farms, O’Sullivan said: “It’s very much each farmer’s decision. If a developer approaches them, they have to look at the economics and make their own decision.”

However, she added that it will have implications for the larger community and there are sensitivities around that.

She emphasised that early engagement is crucial with the farmer and the community, advocating for town hall meetings about the project.

Paul Deane, senior lecturer at University College Cork, said that while we often hear about flora and fauna, it’s also about farmers and their families.

He said that dairy farming is currently doing well, and they make more money from milk than solar, so it’s understandable why they wouldn’t like solar on their land. But other farmers, who are earning less than €18,000 per year for example, see solar as an option to use their land to produce energy rather than food and earn a good living. He said solar gives these farmers options without taking away their choices; they can still use their land to produce food if they want to, but if they want to produce energy, it’s a choice.

It’s clear that Ireland’s electricity grid cannot cope with the rapid addition of renewables.

The development of the solar industry may make this worse.

In a conversation with Lorcan Allen of Keating & Associates, Gerard Reid of Alexa Capital explained that in countries such as Australia and the Netherlands, where solar penetration is much higher than in Ireland, this has caused severe congestion on their grids, making them difficult to manage.

Furthermore, as many households in those countries become self-sufficient in energy generation and disconnect from the grid, the number of people using the grid is decreasing, ultimately making it more expensive to maintain.

There are also issues with negative pricing, which fundamentally erodes the business case for new solar farm investments.

Stephen Robb talks to Conall Bolger, CEO of the Irish Solar Energy Association, about the rise of the industry, its plans for growth and the age-old question – food versus fuel. Listen to the podcast here.