30-Second Overview
Generating electricity on-site allows Irish businesses to reduce their reliance on the national grid, lower electricity costs and generate renewable energy for their own consumption.
Solar PV is the most widely applicable option for businesses, although wind turbines and other generation technologies are suitable for certain locations. Before investing in on-site electricity generation, businesses should consider:
- Installation costs and grants: The initial investment, available Government supports and expected payback period.
- Electricity savings: How much electricity can be generated and consumed on-site, reducing purchases from the grid.
- Solar export payments: The revenue available from surplus electricity exported to the national grid.
- Long-term financial returns: How electricity import prices, maintenance costs and usage patterns affect the overall investment.
The financial return depends on the cost of the installation, the proportion of electricity consumed on-site and the rates paid for electricity imported from and exported to the grid. Businesses that cannot install their own generation systems can still purchase 100% renewable electricity through their electricity supplier.
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What Is Microgeneration for Businesses?
Microgeneration is the small-scale production of electricity from renewable sources, such as solar panels or wind turbines. Businesses can use the electricity they generate on-site, reducing the amount purchased from the national grid, and export any surplus electricity where the appropriate connection and metering arrangements are in place.
In Ireland, ESB Networks classifies electricity generation installations according to their capacity and connection requirements:
- Microgeneration: Up to 6 kVA for single-phase connections or 11 kVA for three-phase connections.
- Minigeneration: Up to 17 kVA for single-phase connections or 50 kVA for three-phase connections.
- Small-scale generation: Larger installations with a maximum export capacity of up to 200 kVA.
Larger commercial installations are subject to separate grid connection requirements. Although these categories have different technical and regulatory requirements, the financial principle is the same: electricity generated and consumed on-site reduces purchases from the grid, while surplus electricity exported can provide an additional source of revenue.
How Can Businesses Generate Their Own Electricity?
Businesses can generate electricity on-site using several technologies, including renewable energy systems. The most suitable option depends on the location, available space, electricity consumption, installation costs and expected financial return. The main options include:
Solar PV Panels
Generate electricity from daylight using rooftop or ground-mounted panels. Particularly suitable for businesses with significant daytime electricity consumption.
Wind Turbines
Generate electricity during the day and night when wind conditions permit. Best suited to locations with sufficient space and favourable wind resources.
Combined Heat and Power (CHP)
Generate electricity and useful heat from a single fuel source. Suitable for businesses with substantial, consistent electricity and heating demand. CHP is not automatically renewable; this depends on the fuel used.
Small-Scale Hydroelectricity
Generate electricity from flowing water. A specialist option for sites with suitable water resources and the necessary permissions.
💡 What About Biomass? Biomass boilers primarily generate heat and hot water rather than electricity. They can reduce fossil-fuel heating requirements, but should not be confused with electricity-generating technologies. Biomass can also fuel certain CHP systems that produce both electricity and useful heat.
How Much Can Businesses Save with Solar Panels?
The financial savings from commercial solar panels depend on the amount of electricity generated, how much is consumed on-site, electricity import prices and the revenue earned from exporting surplus electricity to the grid.
Electricity generated and consumed on-site reduces the amount purchased from suppliers. Surplus electricity can generate additional revenue through export payments, although export rates are generally lower than electricity import prices.
Example: Annual Savings from a Commercial Solar Installation
Consider a business generating 100,000 kWh of solar electricity annually, with 70% consumed on-site and the remaining 30% exported to the grid.
| Financial Component | Calculation | Annual Value |
|---|---|---|
| Electricity Consumed On-Site | 70,000 kWh × €0.30/kWh | €21,000 |
| Surplus Electricity Exported | 30,000 kWh × €0.18/kWh | €5,400 |
| Total Annual Financial Benefit | — | €26,400 |
Illustrative example only. Figures exclude installation costs, financing, maintenance, taxes and other relevant expenses. Actual electricity savings and export payments depend on the business's tariffs, consumption profile and export arrangements. Illustrative electricity prices and financial figures exclude VAT.
Why Electricity Import Prices Matter
The value of electricity generated and consumed on-site is directly linked to the price the business would otherwise pay its electricity supplier.
In the example above, reducing the import price from 30 c/kWh to 25 c/kWh changes the annual value of the 70,000 kWh consumed on-site from €21,000 to €17,500. That is a €3,500 difference in the annual value of self-consumption, even though the solar panels generate exactly the same amount of electricity.
Solar Panel Payback Period: How Is It Calculated?
The payback period measures how long it takes for electricity savings and export revenue to recover the initial investment. Installation costs, available grants, financing, maintenance and future electricity prices all affect the financial return. Businesses should assess these factors alongside expected generation and on-site consumption before committing to an installation.
Example: Solar Panel Payback Period
What Affects the Payback Period?
In this example, the business recovers its net investment in approximately four years and two months. After the payback period, the installation continues generating electricity savings and export revenue, although ongoing maintenance, equipment replacement and other operating costs must still be considered.
💡 Important: This is a simplified calculation based on constant annual savings. A more detailed financial assessment should account for financing costs, changes in electricity prices, equipment degradation, inverter replacement and the expected operating life of the installation.
What Grants Are Available for Commercial Solar Panels in Ireland?
Irish businesses investing in solar PV installations can access Government financial support through the Sustainable Energy Authority of Ireland (SEAI). The Non-Domestic Microgen Grant (NDMG) provides funding towards solar PV installations on eligible commercial, agricultural and other non-domestic premises.
- Grant amount: Under the enhanced scheme introduced in October 2026, eligible businesses can receive up to 45% of qualifying installation costs, subject to scheme limits. The maximum advertised grant is €325,200 for qualifying installations up to 1,000 kWp.
- Eligibility: Funding depends on the business, property, proposed installation and SEAI requirements. Businesses must receive a grant offer before installation works begin.
- Payback period: Grants reduce the initial investment and shorten the time required to recover installation costs through electricity savings and export revenue.
- Application deadline: The enhanced grant window runs from 7 October 2026 to 6 July 2027. Businesses should confirm current grant amounts and eligibility before proceeding.
For full eligibility requirements and applications, visit the SEAI Commercial Solar PV Grant page.
What Should Businesses Consider Before Installing Solar Panels?
Before investing in commercial solar panels, businesses need to assess whether their premises, electricity consumption and financial circumstances make on-site generation a worthwhile investment. The main considerations are:
- Electricity Consumption and Usage Patterns: Businesses with high daytime electricity consumption benefit most from solar PV. Reviewing half-hourly usage data helps determine the appropriate installation size and estimate how much electricity can be consumed on-site.
- Roof Space and Site Suitability: Roof condition, structural capacity, orientation, shading and available space affect installation suitability and expected generation. Businesses should also consider future roof repairs or replacement.
- Planning Permission and Grid Connection: Many commercial rooftop installations qualify for planning exemptions, subject to conditions. ESB Networks connection requirements depend on the installation's generation and export capacity.
- Installation Costs and Financing: The investment includes solar panels, inverters, installation work and any necessary electrical upgrades. SEAI grants, financing costs and ongoing maintenance should also be considered.
- Electricity Export and Battery Storage: Surplus electricity can be exported to the grid or stored for later use. The financial return depends on import prices, export payments, battery costs and electricity consumption patterns.
Can Businesses Buy 100% Renewable Electricity Instead?
Yes. Irish businesses can purchase 100% renewable electricity from their electricity supplier without installing solar panels or investing in on-site generation.
Renewable electricity contracts are available from Irish suppliers, supported by Guarantees of Origin (GOs) that certify the renewable origin of an equivalent amount of electricity. These contracts allow businesses to support renewable electricity generation and meet sustainability requirements without the upfront costs of installing solar panels.
However, purchasing renewable electricity is different from generating electricity on-site. Businesses continue to pay for all electricity imported from the grid, with their exposure to wholesale electricity price movements depending on the terms of their supply contract.
Utilityfair compares 100% renewable electricity contracts across Irish suppliers, helping businesses secure competitive rates while meeting their renewable energy requirements. For more information, visit our 100% Renewable Electricity for Businesses page.
How Utilityfair Helps Businesses Reduce Electricity Costs
Generating electricity on-site reduces the amount your business purchases from the grid, but securing competitive electricity rates remains important.
Utilityfair compares electricity prices and contract options from all Irish suppliers, helping businesses reduce energy costs whether they have installed solar panels, are considering on-site generation or prefer to purchase 100% renewable electricity. Our Senior Energy Advisors can help you:
- Compare electricity prices: Review offers from all Irish suppliers based on your electricity consumption, meter type and estimated annual costs.
- Choose the right contract: Compare fixed-price contracts, wholesale trackers and flexible purchasing options to secure the most suitable electricity agreement.
- Review electricity consumption: Assess how on-site generation changes your grid electricity requirements and the cost of imported electricity.
- Source renewable electricity: Compare 100% renewable electricity contracts supported by Guarantees of Origin, without investing in on-site generation.
👉 Ready to Reduce Your Electricity Costs?
Get a free business electricity comparison from all Irish suppliers. Upload your latest electricity bill using the link below or speak directly with one of our Senior Energy Advisors on 01 547 0999.
Frequently Asked Questions (FAQs)
Yes. Irish businesses with eligible electricity generation systems can export surplus electricity to the national grid and receive payments under an export agreement with their electricity supplier. Export eligibility and payments depend on the installation, metering arrangements, grid connection and supplier's export tariff.
Standard grid-connected solar PV systems automatically shut down during a power cut for safety reasons. Businesses that require backup electricity need a suitably designed system with battery storage, backup capability and appropriate electrical protection. Installing solar panels alone does not provide backup power.
Yes, subject to the property owner's permission and any relevant lease conditions. Businesses should consider the remaining lease term, installation costs, ownership of the panels and responsibility for maintenance before investing. A short lease can make it difficult to recover the initial investment.
Commercial solar panels commonly have an expected operating life of 25–30 years or longer, although electricity generation gradually declines over time. Inverters and other components may require replacement during the installation's lifetime. Businesses should account for these costs when assessing long-term returns.
Yes. Most businesses with solar panels remain connected to the national grid and purchase electricity when their panels are not generating enough to meet demand, including at night. Comparing electricity import rates remains important because solar panels do not eliminate the need for a competitive electricity supply contract.
Microgeneration is financially worthwhile when the electricity savings and export revenue justify the installation and ongoing costs. Businesses with suitable premises and substantial daytime electricity consumption are particularly well placed to benefit from solar PV. Smaller businesses should assess installation costs, available grants, expected self-consumption and payback periods before investing.
